Chapter 4: Resources (internal environment)

Question 1

resource-based theory

Answer 1

the idea that the posession of strategic resources can provide an organization with competitive advantages over its rivals.

Question 2

valuable (2)

Answer 2

+ The resource is a source of profit for the firm
+ It helps a firm exploit opportunities or neutralize threats

Question 3

rare

Answer 3

not possessed by many others

Question 4

difficult to imitate

Answer 4

resources that can not be easily duplicated by competitors and are often protected by various legal means, including trademarks, patents, and copyrights.

Question 5

nonsubstitutable

Answer 5

Resources that exist when competitors cannot find alternative ways to gain the benefits that a resource provides

Question 6

What is a resource?

Answer 6

anything a firm owns and controls

Question 7

Things a firm does?

Answer 7

capabilities

Question 8

things a firm has

Answer 8

resources

Question 9

bundles of resources

Answer 9

capabilities

Question 10

tangible resources (4)

Answer 10

+ easy to identify
+ financial
+ physical
+ technological

Question 11

intangible resources (3)

Answer 11

+ difficult for competitors ( and the firm itself ) to account for and imitate
+ human characteristics
+ reputation

Question 12

organizational capabilities (2)

Answer 12

+ skills that a firm employs to transform inputs into outputs
+ capacity to combine tangible and intangible resources to attain the desired end

Question 13

strategic resources

Answer 13

those things that a firm owns or controls that have “strategic value”. In other words, those resources that can provide a competitive advantage.

Question 14

what four criteria make a resource strategic

Answer 14

+ valuable
+ rare
+ inimitable
+ non-substitutable

Question 15

what are some attributes that make a resource difficult to immitate? (4)

Answer 15

+** physically unique**
+ historical
+ Ambiguous cause - The causes and uses of a competence are unclear
+ Social complexity - Interpersonal relationships, trust, friendship among managers, suppliers, and customers

Question 16

ambigious cause

Answer 16

when the cuases and uses of a competence are unclear

Question 17

rare does not equal

Answer 17

valuable

Question 18

Intangible resources are more likely to support a ______ ______ than tangible resources.

Answer 18

competitive advantage

Question 19

Many intangible resources are ______ _ _____ _____.

Answer 19

protected as intellectual property

Question 20

intellectual property and intangible assests will not show up where?

Answer 20

Balance sheet

Question 21

patents

Answer 21

allows the creator of a technology the sole right to make, use, and sell that invention for a set period of time

Question 22

copyrights

Answer 22

a right granted to an author/composer/publisher to exclusive publication/sale/distribution of an artistic work (e.g. literature, music, theater production)

Question 23

trademarks

Answer 23

protection of a name or logo

Question 24

trade secrets

Answer 24

don’t tell anyone (e.g. Coke’s secret formula or
KFC’s eleven herbs and spices)

Question 25

The value chain is an analytical tool that helps the firm understand two main things:

Answer 25

+ All of the activities the firm performs + Which activities are key to the firm’s competitive advantage

Question 26

what is the value chain (2)

Answer 26

+ analytical tool + includes all of the activities the firm performs to produce and sell its product or service

Question 27

primary activities

Answer 27

involved in the actual production of the product or service

Question 28

support activities

Answer 28

underline or facilitate the primary activities

Question 29

what are some primary activities (4)

Answer 29

+ inbound and outbound logistics + operations + marketing and sales + service

Question 30

What are some support activities (4)

Answer 30

+ firm infrastructure + human resources management + technological development + procurement

Question 31

value chain are all the activities that happen __ _____.

Answer 31

in house

Question 32

supply chain includes a series of _____ _____ and _____ _____.

Answer 32

supplier businesses; customer businesses

Question 33

a firm typically only has __ __ ___ core competencies

Answer 33

3-4

Question 34

dynamic capabilities

Answer 34

create new capabilities by continually updating a company’s array of capabilities in order to keep pace with changes in its environment

Question 35

distinctive competence

Answer 35

A set of activities that an organization performs especially well

Question 36

markeing mix

Answer 36

product, place, price, promotion

Question 37

inbound logistics

Answer 37

Refers to the arrival of raw materials.

Question 38

social complexity

Answer 38

interpersonal relationships, trust, friendshipamong managers, suppliers, and customers.

Question 39

operations

Answer 39

Refers to the **production process** of a good or service.

Question 40

outbound logistics

Answer 40

the departure of finished goods

Question 41

company (organizational) infrastructure

Answer 41

Refers to how the company is organized and led by executives

Question 42

Technological development

Answer 42

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

Question 43

procurement

Answer 43

The process of negotiating for and purchasing raw materials

Question 44

supply chain

Answer 44

system of people, activities, information, and resources (PAIR) involved in **creating a product and moving it to the customer.**

Question 45

best value supply chains

Answer 45

Supply chains that focus on the **cusotmer value** as opposed to individual outcomes such as speed or cost.

Question 46

Strategic supply chain management

Answer 46

when the supply chain is used to create competitive advantages and enhance company performance.

Question 47

speed/ cycle time

Answer 47

the time duration from initiation to completion of the production and distribution process.

Question 48

enactment theory

Answer 48

orgainzations activley create their own environments through their actions, rather than just responding to them

Question 49

environmental determinism theory

Answer 49

organizations are limited in their ability to adapt to the conditions (environment) around them.

Question 50

Institutional theory

Answer 50

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

Question 51

transaction cost economics theory

Answer 51

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

Question 52

backward integration strategy

Answer 52

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