chapter 5

Question 1

value chain

Answer 1

linked set of value creating activities that begin with raw materials

Question 2

durability

Answer 2

THE RATE at which a firm’s underlying resources depreciate or become obsolete

Question 3

upstream

Answer 3

the closer to the beginning in the value chain

Question 4

organizational analysis

Answer 4

concerned with identifying and developing an organization’s resources and competencies

Question 5

center of gravity

Answer 5

the part of the value chain that is the most important to the company

Question 6

explicit knowledge

Answer 6

knowledge that can be easily articulated and communicated

Question 7

downstream

Answer 7

the closer to the end of the value chain

Question 8

accessing a distinctive competency

Answer 8

asset endowment, acquired from someone else, shared with another business etc

Question 9

corporate culture

Answer 9

beliefs, expectations and values creating activities that begin with raw materials

Question 10

rareness

Answer 10

do no other companies possess it?

Question 11

cultural intensity

Answer 11

the degree to which members of the unit accept the corporate culture.

Question 12

tacit knowledge

Answer 12

knowledge that is not easily communicated/deeply rooted in company experience/ culture

Question 13

cultural integration

Answer 13

the extent to which units throughout the organizations share a common culture

Question 14

business model

Answer 14

the company’s method for making money

Question 15

product life cycle

Answer 15

the introduction, growth, maturity, and decline of a product

Question 16

distinctive competency

Answer 16

core competencies that are superior to those of the competition

Question 17

brand

Answer 17

name given to a company ‘s product which identifies that item in the customers mind

Question 18

imitability related to sustainability

Answer 18

THE RATE at which a firm’s underlying resources can be duplicated by others

Question 19

corporate brand

Answer 19

a type of brand in which the company’s name serves as the brand

Question 20

replicability

Answer 20

THE ABILITY of competitors to use duplicated resources to imitate a competitors success

Question 21

value

Answer 21

does it provide customer value and competitive advantage ?

Question 22

corporate reputation

Answer 22

widely held perception of the company by the general public

Question 23

transparency

Answer 23

THE SPEED with which firms support a successful strategy

Question 24

experience curve

Answer 24

unit production costs decline each time volume production increases

Question 25

using resources to gain competitive advantage

Answer 25

identify strength/weakness - appraise profit potential - identify resource gaps, etc

Question 26

financial leverage

Answer 26

ratio of total debt to total assets at a company

Question 27

resources

Answer 27

an organizations assets and they are basic building blocks of the organization

Question 28

research and development intensity

Answer 28

spending on R&D as a percentage of sales

Question 29

imitation or imitability

Answer 29

is it costly for others to imitate ?

Question 30

technology transfer

Answer 30

the process of taking new technology from the lab to the marketplace

Question 31

clusters

Answer 31

geographic concentrations of interconnected companies/industries

Question 32

basic research and development

Answer 32

focuses on theoretical problems

Question 33

capabilities

Answer 33

refers to a corporation's ability to exploit its resources

Question 34

technology discontinuity

Answer 34

when new technology cannot be used to enhance current technology

Question 35

core competency

Answer 35

a collection of competencies that cross divisional boundaries

Question 36

virtual teams

Answer 36

groups of workers dispersed organizational or geographically

Question 37

organization

Answer 37

is the firm organized to exploit the resource ?

Question 38

supply chain management

Answer 38

forming networks for sourcing raw materials, manufacturing products, storing goods etc

Question 39

transferability

Answer 39

THE ABILITY of competitors to gather the resources and capabilities necessary to support a competitive challenge

Question 40

human diversity

Answer 40

a mix of people in the workplace from different races, cultures, and backgrounds