Lecture 1-B (RBV) Farmanar

Question 1

Resource-based view steps

Answer 1

Step 1 - Identification of strategic assets of the enterprise
Step 2 - Development and combination of strategic assets to generate competitive advantage (industry)

Question 2

Core competence model of Prahalad & Hamel (1990)

Answer 2

What makes a core competence 
1.  Resources
- Tangible assets
- Intangible assets
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2. Capabilities (coordination of the company‘s resources by)
- Organizational structure
- Processes
- Management control systems
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Core competence: 
1. Must be valuable (Willingness to pay 
2. Difficult to imitate or substitute
3. Better than other 
Examples: Honda - engines, Kodak - images.

Question 3

Value chain of a manufacturing company (M. Porter 1985)

Answer 3

Main activities:

• Inbound logistics
• Production
• Outbound logistics
• Marketing & Sales
• Customer Service & Support

Supportive activities:

• Human resource management/ Leadership
• Financial & managerial accounting, corporate finance

Question 4

Value chain optimization to gain competitive advantage

Answer 4

• Alignment/ coordination of value chain activities across company borders
• Linkage of information systems and production processes

VW buys steal for his suppliers ( big volumes - reduction of price)

Question 5

Business models of enterprises

Answer 5

• Value Proposition (Benefit and value generated for customers)
• Value generation architecture (Structuring, outsourcing)
• Earnings model (income earned)

Question 6

Value generation architectures = business systems

Answer 6

1. Layer Player (Concentration in one value chain step, advantages of specialization/ scale, i.e. cost reduction and qualitäty enhancement) (Foxconn - only assemble, Walmart - only sell)
2. Orchestrator (Focus on important (margin-rich) value chain steps, e.g. product development, marketing) (Nike, Apple)
3. Layer Pioneer, Market Maker (Creation of new markets, capturing with new standard)
   (Apple music, Itunes)
4. Integrator (Fully-integrated ‚classical‘ value chain, Transaction cost minimization between value chain steps) (Royal Dutch Shell, Zara)