4. Integrating Internal and External Resources

Question 1

What does SWOT stand for?

Answer 1

Strengths, weaknesses, opportunities and threats.

Question 2

Which parts of SWOT are from internal origin, and which are from external resources?

Answer 2

Internal origin: strengths, weaknesses

External resources: opportunities, threats

Question 3

What are external resources

Answer 3

Assets, knowledge and skills outside of a firm.

Question 4

What are lead users?

Answer 4

Individuals or communities that invent new or improve current products.

Question 5

How do firms achieve strategic competitiveness?

Answer 5

By combining internal and external resources.

Question 6

Define sensing.

Answer 6

Awareness of weak signals, opportunities or new knowledge.

Question 7

Define consumer ethnography.

Answer 7

Employing fieldwork or ethnographic tools to understand consumer behaviour.

Question 8

Define fieldwork.

Answer 8

A methodological approach to generate data and insight on ethnography (to understand target groups).

Question 9

Define core rigidities.

Answer 9

Competencies that no longer relevant and result to weakness. (Trapped in the past)

Question 10

Define resource integration.

Answer 10

Mutually beneficial combination of internal and external resources.

Question 11

Define design.

Answer 11

Pursuit of emotional, symbolic and functional performances of products.

Question 12

Define turnaround.

Answer 12

A rare managerial accomplishment of organisational change after a performance decline.

Question 13

Give examples of export orientated countries.

Answer 13

Germany, Korea, Japan

Question 14

What is a benefit of internationalisation?

Answer 14

Having high market shares with small/medium size firms in small and profitable markets (hidden champions).

Question 15

Define coopetition.

Answer 15

The cooperation between two competitors to make valuable complimentary products while still individually competing to capture value.

Question 16

Give an example of coopetition.

Answer 16

Microsoft computers with Intel chips.

Increases in what customers were willing to pay compared to before coopetition.

Question 17

Define a competence trap.

Answer 17

Overly relying on a core competencies.

Question 18

Define open innovation.

Answer 18

Using outside resources to enhance value.

Question 19

Define knowledge processes.

Answer 19

The way firms create, absorb, transfer and transform knowledge.

Question 20

What is a weak signal?

Answer 20

A change in consumer/economy that is not easily detected.

Question 21

What does seizing entail?

Answer 21

Acting upon weak signals, opportunities or new knowledge.

Question 22

Name 3 conditions that affect managerial decisions.

Answer 22

1) Uncertainty
2) Complexity
3) Interorganisational dynamics

Question 23

What does peripheral vision cause?

Answer 23

Awareness of movements without focusing on what moves.

This way companies can focus on themselves and their priorities.

Question 24

Define clusters.

Answer 24

Firms with complementary products all in one region.

Question 25

Give an example of a cluster.

Answer 25

Silicone valley and technology companies.

Question 26

What do clusters help indicate?

Answer 26

Important assets/resources.

Question 27

What does the ability to learn depend on?

Answer 27

The ability to absorb and value new external knowledge over old knowledge and experience.

Question 28

Define assimilation.

Answer 28

Placing new knowledge into existing framework. If the new knowledge is too different it is disruptive innovation.

Question 29

What caused transformation?

Answer 29

Disruptive innovation causes existing frameworks to be transformed.

Question 30

Give an example of a transformation.

Answer 30

Kodak/fuji film had to transform their technology due to rising digital photography.

Question 31

Define organisational change.

Answer 31

A strategy change that includes adapting structures, processes, methods and cognition.

Question 32

Define alliance.

Answer 32

An agreement between parties to conduct activities based on a mutual goal.

Question 33

Define acquisition.

Answer 33

When one firm entity internalises another. It is a takeover or buyout.

Question 34

What are the goals of alliances and acquisition?

Answer 34

Expanding a firm's pool of resource by accessing external resources.

Question 35

What is "Not invented here" (NIH)?

Answer 35

Close mindedness of firms to external ideas.

Question 36

Define adaptive resistance.

Answer 36

The ability to respond positively to change/adaption.

Question 37

Define maladaptive resistance.

Answer 37

The inability/resistance of firms in response to change/adaption.

Question 38

What causes maladaptive resistance?

Answer 38

1) Employees seeing change as a burden. 2) Newly internalised resources are too hard to understand. 3) Challenge of choosing what resources to let go in place of new resources.

Question 39

What do models of integration describe?

Answer 39

Broad approaches to integrating internal and external resources.

Question 40

What are the three types of models of integration?

Answer 40

1) Stable integration 2) Modular integration 3) Dynamic integration

Question 41

Define stable integration.

Answer 41

When companies internalise information without changing the new combination.

Question 42

Define modular integration.

Answer 42

Purposeful selection of external resources to substitute parts of the value chain.

Question 43

Define dynamic integration.

Answer 43

It resembles a process.