Chapter 4

Question 1

from external to internal analysis

Answer 1

similar external opportunities/threats

source for observable performance differences must be found inside the firm RESOURCES,CAPABILITIES CORE compentces

Question 2

core competences

Answer 2

unique strengths, embedded deep within the firm

Question 3

resources

Answer 3

any tangible or intangible asset a firm can utilise when formulating and executing a strategy

Question 4

capabilities

Answer 4

organizational, managerial skills necessary to orchestrate a diverse set of resources and to deploy them strategically them strategically

Question 4

capabilities

Answer 4

organizational, managerial skills necessary to orchestrate a diverse set of resources and to deploy them strategically them strategically

Question 5

activities

Answer 5

distinct and fine-grained business concept (order taking, physical delivery to clients)

Question 6

resource based view:tangible resources

Answer 6

labor, capital, land, buildings…

Question 7

resource based view:intangible resources

Answer 7

firms cultur, knowledge, brand equity, brand reputation, equity, patents etc

Question 8

resource based view: Resource heterogeneity

Answer 8

bundles of resources, capabilities differ across firms in the same industry

Question 9

resource based view: resource immobility

Answer 9

resources do not move easily from firm to firm

Question 10

VIRO framework

Answer 10

identfying resources as key to superior performance + predicting firm level competitive advantage

Question 11

VIRO framework: valuable resources

Answer 11

• enables firm to exploit external oppertunities/offset external threats + increase economic value creation
  revenue rises: if predicted value of product increases

Question 12

VIRO framework: rare

Answer 12

if only one firm processes this resource

- resource valuable+ rare= competitive advantage

Question 13

VIRO framework: costly to imitate

Answer 13

if the firm that do not processes resource are unable to develop buy it and good price

Question 14

VIRO framework: direct immitation

Answer 14

competitive advantage can not be sustained if it can be easily imitated

Question 15

VIRO framework: substitution

Answer 15

offering a comparable product -> strategic equivalence

Question 16

VIRO framework: organised

Answer 16

having an effective organizational structure

Question 17

Isolating mechanisms

Answer 17

how to sustain competitive advantage

Question 18

Isolating mechanisms: better expectations of future resources

Answer 18

the foundation of a competitive advantage, When turn out to be more accurate than those held by competitors (when resources are acquired at lower cost)

Question 19

Isolating mechanisms: PATH DEPENDENCY

Answer 19

The options one faces are limited by the decisions of the past. generate long term consequence due to path dependency + time compression diseconomics

Question 20

Isolating mechanisms: casual ambiguity

Answer 20

cause and effect of a phenomenon are not really apparent -> explanation theory of it needed

Question 21

Isolating mechanisms: social complexity

Answer 21

different social and business system

Question 22

Isolating mechanisms: intellectual property

Answer 22

critical intangible resources that can help stain competitive advantage

Question 23

the dynamic capabilities perspective: core rigidity

Answer 23

former core competicies turns into liability -> failed to refine and upgrade competency as the environment changed

Question 24

Isolating mechanisms: dynamic capabilities

Answer 24

ability to create upgrade its reosurces over time in a quest for competitive advantage-> creating stratgic fit

Question 25

Isolating mechanisms: dynamic capabilities perspective

Answer 25

ca is the outflow of a firms capacity to dynamically reconfigure is resources base in a way to gain competitive advantage in a constantly changing environment

Question 26

Isolating mechanisms: resource stocks

Answer 26

current level of intangible resources

Question 27

Isolating mechanisms: resource flows

Answer 27

level of investment to maintain or build a resource

Question 28

Value chain

Answer 28

internal activites transforming inputs into outputs, each activity along the horizontal chain adds value for the end consumer analysis of value chain allows understanding of how the economic value is created

Question 29

value chain: primary activities

Answer 29

aadds direct vlalue as inputs tranform in outputs | - supply chain managment, operations, after sale service, ..

Question 30

value chain: support activities

Answer 30

add value directly | -research and development, human resources, accounting....

Question 31

SWOT analysis

Answer 31

internal: stregnth and weaknessesm-> VIRO framework external: oppertunities and threats -> identifiable through Pestel/5 forces