The Internal Operation Environment of Business

Question 1

These are the foundation for strategic actions and these bundles of resources generate competitive advantage that leads to wealth generation and profit.

Answer 1

Internal Management Resources

Question 2

It defined as the evaluation in terms of respect, awareness and knowledge, and the emotional and affective reactions of the various stakeholders.

Answer 2

Internal Business Environment

Question 3

It is the utilization of the bundle of heterogeneous resources, capabilities and core competencies that can be used to create an exclusive market position.

Answer 3

Strategic Positioning

Question 4

The global standards for product and services create customer values that are measured by product performance characteristics and the attributes for which customers are willing to pay for.

Answer 4

Creating Customer Value

Question 5

It is the source of the firm’s potential to earn the desired profit objective.

Answer 5

Creating Value

Question 6

It is created when they buy the product at reasonable price and based on quality standards or high product differentiations.

Answer 6

Customer Value

Question 7

It refers to the challenges to the implementation of strategic actions may appear to be easy in the surface. Deeply the strategic action must be the result of careful analysis of the business conditions and the competitor’s strategy.

Answer 7

The Challenge of Internal Analysis

Question 8

These decisions are uncertain about the conditions of the general industry environment as it keep changing overtime.

Answer 8

Uncertainty

Question 9

The universe of decision-making process is complex as the interrelated environment is shaping so rapidly.

Answer 9

Complexity

Question 10

The structure of the organization is so designed that managers are tasked with specific duties and responsibilities. Managers are working closely with their responsibilities and would like to protect their own identity in the organization. While horizontal and vertical working relationships exist, managers could not avoid protecting their own personal interest.

Answer 10

Intra-Organizational Conflict

Question 11

This refers to the firm’s cash flow assets that can be used
in the operation of the business.

Answer 11

Financial Resources

Question 12

It refers to the organizational structure that plans, organizes, directs and controls the operation of the business.

Answer 12

Organizational Resources

Question 13

These are physical assets that are used in the operation of the business. This refers to plant facilities, machinery and equipment and used to produce products.

Answer 13

Physical Resources

Question 14

It refers to the technology such as system and procedures, patents, corporate trademarks, copyrights and trade secrets. This may also refer to new inventions and innovation undertaken by the company to improve its products and services to its clients.

Answer 14

Technological Resources

Question 15

It is one of the most important assets that the company could depend on for competitive advantage. It refers to skills and knowledge base of the workers to see and direct the corporate activities towards the profit objective of the firm.

Answer 15

Human Resources

Question 16

It is the capacity to bring in new idea and innovative strategies that would be necessary in the change process. It refers also to scientific innovations in terms of pollution control and wise use of material resources.

Answer 16

Innovation Resources

Question 17

It refers to the reputation the firm has earned overtime with its customers and other stakeholders, it refers to the perceptions about product quality, durability and reliability.

Answer 17

Reputational Resources

Question 18

These capabilities are the tangible and intangible resources that are purposely integrated to achieve the desired results.

Answer 18

The Firm’s Internal Capabilities

Question 19

These are internal and external resources and capabilities that serve as the source of competitive advantage over rivals in the industry. It reflects the firm’s personality among its clients and stakeholders and emerged overtime through an organizational process of accumulating and learning on how to deploy its resources and capabilities.

Answer 19

Core Competencies / Internal Core Competencies

Question 20

This is where the firm achieves a sustained competency when the competitors failed to duplicate the products or services that the firm produced or failed in entering the firm’s market niche.

Answer 20

The Criteria for Sustainable Advantage

Question 21

It refers to the state of how the firm can exploit opportunities and neutralize threats in the external environment. It is also the creation of value among its customers and the development of loyalty and patronage by sustaining the products’ quality and innovative features.

Answer 21

Valuable Capabilities

Question 22

Rare products are difficult to imitate. These are possessed by few (if any) by the competitors.

Answer 22

Rare Capabilities

Question 23

Costly capabilities are corporate competencies that other firms cannot easily develop. Huge investment in capital base could be one reason for other competitors to enter the venture if they are not certain on their return of investments.

Answer 23

Imitation Cost Capabilities

Question 24

It refers to the historical development of the firm that comes at the right time and place in history.

Answer 24

Unique Historical Condition

Question 25

It refers to the condition when the competitors cannot clearly understand how a firm uses its capabilities as the foundation for competitive advantage.

Answer 25

The Firm is Casually Ambiguous

Question 26

It means that the firm’s capabilities are the product of complex social phenomenon. The internal personal relationship, trust and friendships among managers and employees are the firm’s reputation with suppliers and customers.

Answer 26

Social Complexity

Question 27

Political connection in business operation is a competitive advantage as the power to elect officials is also dictated by the business community. are also factors in competitive advantage as some industries are controlled by the government for efficient and effective delivery of service.

Answer 27

Political Complexity and Government Regulations

Question 28

This refers to condition where there is no strategic equivalent to the firm’s existing capabilities.

Answer 28

Non-substitutable Capabilities

Question 29

It is the process of understanding the parts of operation creating value for the firm and the analysis of cost position in creating products that gives the competitive advantage.

Answer 29

Value Analysis / Value Chain Analysis

Question 30

It is concerned with the internal cost related to the operation such as finance and other overhead cost related to production.

Answer 30

Inbound Logistics

Question 31

It is related to the efficiency and effectiveness in the manufacturing of the product with the use of the system and procedures that generate economy.

Answer 31

Operation

Question 32

It is related to the effectiveness and efficiency in product to its customers and clients at least cost to the firm.

Answer 32

Outbound Logistics

Question 33

It concerns with the development of creating a greater share of the market through advertising, sales promotion, and effective client relations.

Answer 33

Marketing and Sales

Question 34

It is concerned with after sales services, undertaken by the firm to maintain reputable image and develop continuous customer patronage.

Answer 34

Service

Question 35

It refers to the activity related to the purchasing, delivery, storage and inventory of the products that will used in the production of goods.

Answer 35

Procurement

Question 36

It is concerned with the technology that is applied in the production and the efficiency by which they are used.

Answer 36

Technological Development

Question 37

It refers to the recruitment, selection and the process of making the workers productive in the development of products through motivation and the development of moral values and work ethics.

Answer 37

Human Resources Management

Question 38

It is related to the physical facilities like buildings, machineries, and other physical assets that are inherent in the firm’s operation and used with utmost economy.

Answer 38

Firm Infrastructure

Question 39

These are the process of getting materials from external sources and the trend continuous at the rapid pace in the new global economy.

Answer 39

Outsourcing / Material Outsourcing

Question 40

What are the characteristics that Outsourcing needs in managers and external outsourcing executives?

Answer 40

1. Technical competence in evaluating the materials needed
2. Effective communication and human relations with intended suppliers
3. Coordination and effective control in inventory management
4. Honest and highly committed in following agreements with suppliers
5. Possess the expertise to assist technical improvements in materials development.