1. Introduction

Question 1

Creating Value and Company Goals?

Answer 1

Trend: Maximize Shareholder Value

• positive side: shareholder value maximization as their key target
• normative side: shareholder value maximization leads to efficient choices for the economy as a whole

Question 2

How to create more value along the value chain than competitors?

Answer 2

• configure the value chain differently
• perform activities in the value chain more effectively

Build up:

• specific resources
• capabilities

Important: Shouldn’t be easy to duplicate

Question 3

Resources (things that a firm “has”)

Answer 3

• firm-specific assets such as patents or trademarks
• brand name reputation
• installed base
• organizational culture
• workers with specific human capital

Question 4

Capabilities / Core competencies (things that a firm “can do”)

Answer 4

• activities that a firm does especially well compared with other firms
• might reside within special functions or are linked to particular technologies
• typically valuable across multiple products or markets
• often tacit