MGMT 485W: Chapter 3

Question 1

Value

Answer 1

measured by a product’s performance characteristics and by its attributes for which customers are willing to pay

Question 2

Foundation for producing goods or services that will create value to the customers

Answer 2

resources

Question 3

Firms create value by

Answer 3

innovatively bundling and leveraging their resources to form capabilities and core competencies

Question 4

value is the sources of

Answer 4

above-average returns for a firm

Question 5

Resources

Answer 5

bundled to created organizational capabilities

Question 6

Capabilities

Answer 6

are the source of a firm’s core competencies which are the basis of establishing competitive advantage.

Question 7

by themselves resources do not allow firms to create value, but rather

Answer 7

combined to form capabilities

Question 8

tangible resources definition

Answer 8

assets that can be observed and quantified

Question 9

Tangible Resources ABBREV

Answer 9

FOPT

Question 10

Tangible Resources

Answer 10

• Financial Resources
• Organizational Resources
• Physical Resources
• Technological Resources

Question 11

Intangible Resources definition

Answer 11

includes assets that are rooted deeply in the firm’s history, accumulative over time, and are relatively difficult for competitors to analyze and imitate.

Question 12

Intangible Resources ABBREV

Answer 12

HIP

Question 13

Intangible Resources

Answer 13

Human Resources
Innovation Resources
Reputational Resources

Question 14

Categories of Intangible Resources

Answer 14

Human Capital
Information Capital
Organizational Capital

Question 15

Intangible Advantages ABBREV

Answer 15

PANN

Question 16

Intangible Advantages

Answer 16

• Preferable
• Ambiguous Source
• Not Constrained
• Not depleted with use

Question 17

Ambiguous source

Answer 17

hard to copy or to understand

Question 18

Capabilities combines

Answer 18

individual tangible and intangible to create capabilities

Question 19

Core competence create

Answer 19

economic value superior to competitors

Question 20

Four Criteria of Sustainable Competitive Advantage ABBREV

Answer 20

VRCN

Question 21

Four Criteria of Sustainable Competitive Advantage

Answer 21

• Valuable
• Rare
• Costly to Imitate
• Nonsubstitutable

Question 22

Valuable capabilities

Answer 22

allow the firm to exploit or neutralize threats in its external environment creating value

Question 23

Rare Capabilities

Answer 23

capabilities that few, if any, competitors possess.

Question 24

Nonsubstitutable capabilities

Answer 24

capabilities that do not have strategic equivalents.

Question 25

the more intangible,

Answer 25

the more difficult it is for firms to find substitutes and the greater the challenge is to competitors trying to imitate a firm’s value-creating strategy

Question 26

Core Rigidity

Answer 26

core competence protected from innovation

Question 27

value chain analysis allows

Answer 27

the firm to understand the parts of its operations that create value and those that do not

Question 28

Outsourcing

Answer 28

the purchase of a value-creating activity or a support function activity from an external supplier

Question 29

How outsourcing creates value ABBREV

Answer 29

IASFS

Question 30

How outsourcing creates value

Answer 30

- Improve business focus - Access to better capabilities - Share Risks - Free resources for other purposes - Save $