Ch.4 Managing Company Resources

Question 1

the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals.

Answer 1

Resource-based theory

Question 2

an asset that is valuable, rare, difficult to imitate, and non-substitutable.

Answer 2

Strategic Resource

Question 3

one that will endure over time and
help the company stay successful far into the future.

Answer 3

Sustained competitive advantage

*when given the 4 strategic qualities

Question 4

resources than can be readily seen, touched, and quantified, such as physical assets, property, plant, equipment, and cash.

Answer 4

Tangible resources

Question 5

resources that are quite difficult to see, touch, or quantify, such as the knowledge and skills of employees, a company’s reputation, and a company’s culture.

Answer 5

Intangible resources

Question 6

• Refers to what the organization can do.
• Capabilities tend to arise over time as a company takes actions that build on its strategic resources.

Answer 6

Capabilities

Question 7

one that is skilled at continually updating its array of capabilities in order to keep pace with changes in its environment.

Answer 7

Dynamic Capability

Question 8

A set of activities that an organization
performs especially well.

- creates a competitive advantage for a company.

Answer 8

Distinctive Competence

Question 9

provides important insights into how to convince customers to purchase desirable goods and services.

Answer 9

Marketing Mix (The 4 P’s)

Question 10

• A company’s product is what it sells to customers.
• The price of a good or service should provide a good match with the value offered.
• Place can refer to a physical purchase point as well as a distribution channel.
• Promotion consists of the communications used to market a product, including advertising, public relations, and other forms of direct and indirect selling.

Answer 10

The 4 P’s of the Marketing Mix

Question 11

Refers to creations of the mind, such as
inventions, artistic products, and symbols.

Four main types: patent, trademarks, copyrights, and trade secrets

Answer 11

Intellectual property

Question 12

Legal decrees that protect inventions from direct imitation for a limited
period of time.

Answer 12

Patents

Question 13

Phrase, picture, name, or symbol used to identify a particular organization.

Answer 13

Trademarks

Question 14

Provides exclusive rights to the creators of original artistic works
such as books, movies, songs, and screenplays.

Answer 14

Copyrights

Question 15

Formulas, practices, and designs that are central to a company’s business and that remain unknown to competitors.

Answer 15

Trade secrets

Question 16

A tool that charts the path by which products and services are created and eventually sold to customers.

- include primary and support activities

Answer 16

Value Chain

Question 17

Actions that are directly involved in the creation and distribution of goods and services.

physical jobs that create product

Answer 17

Primary Activities

Question 18

Refer to the arrival of raw materials.

primary activity

Answer 18

Inbound Logistics

Question 19

Refer to the actual production process

primary activity

Answer 19

Operations

Question 20

The departure of finished goods.

primary activity

Answer 20

Outbound Logistics

Question 21

Activities used to attract potential customers and convince them to make purchases.

primary activity

Answer 21

Marketing and Sales

Question 22

Refers to the extent to which a company provides assistance to their customers.

primary activity

Answer 22

Service

Question 23

Action not not directly involved in the evolution of a product but that instead provides important underlying support for primary activities.

background activities

Answer 23

Support Activities

Question 24

Refers to how the company is organized and led by executives.

support activities

Answer 24

Company Infrastructure

Question 25

Involves the recruitment, training, and compensation of employees.

support activities

Answer 25

Human resource management

Question 26

Refers to the use of computerization and
telecommunications to support primary activities.

support activities

Answer 26

Technological Development

Question 27

The process of negotiating for and purchasing raw materials.

support activities

Answer 27

Procurement

Question 28

A system of people, activities, information, and resources involved in creating a product and moving it to the customer. It is a broader
concept than a value chain.

* crucial for our job career

Answer 28

Supply Chain

on exam

Question 29

Focus on the total value added to the customer.

4 required components

Answer 29

Best value supply chains

Question 30

• Speed (or “cycle time”) is the time duration from initiation to completion of the production
  and distribution process.
• Quality refers to the relative reliability of supply chain activities.
• Supply chains efforts at managing cost involve enhancing value by either reducing
  expenses or increasing customer benefits for the same cost level.
• Flexibility refers to a supply chain’s responsiveness to changes in customers’ needs.

Answer 30

4 required components

Question 31

Refers to the use of supply chains as a
means to create competitive advantages and enhance company performance.

Answer 31

Strategic Supply Chain Management

Question 32

The supply chain’s relative capacity to act rapidly in response to dramatic changes in supply and demand.

Answer 32

Agility

Question 33

Refers to a willingness and capacity to reshape supply chains when necessary

Answer 33

Adaptability

Question 34

Refers to creating consistency in the interests of all participants in a supply chain. In many situations, this can be accomplished through carefully writing incentives into contracts.

Answer 34

Alignment

Question 35

Theoretical perspective that contends that an
organization can, at least in part, create an environment for itself that is beneficial to the organization by putting strategies in place that
reshape competitive conditions in a favorable way.

Answer 35

Enactment

Question 36

Theoretical perspective that contends
that organizations are very limited in their ability to adapt to the
conditions around them.

Answer 36

Environment determinism

Question 37

Examines the extent to which companies copy each other’s strategies.

Answer 37

Institutional Theory

Question 38

Theory that centers on whether it is
cheaper for a company to make or to buy the products that it needs.

Answer 38

Transaction cost economics

Question 39

Occurs when a company enters the
business of one of its suppliers.

Answer 39

Backward integration strategy

Question 40

A technique for understanding a company’s situation that considers its strengths and weaknesses along with the opportunities and threats that exist in the company’s environment.

Answer 40

SWOT Analysis