3 Firm resources Flashcards
international competitive landscape
international integration trade liberation growth of world trade & foreign direct investment globalization new economic powers hyper-competition volatile financial markets role of government partnership between companies form different industries
Resources
tangible & intangible assets a firm uses to choose and implement it’s strategies
Tangible resources
assets that are observable & easy quantified (financial, physical, technological, organizational)
intangible resources
assets that are hard to observe and difficult of impossible to quantify
organizational culture, innovation
values chain =
activities used in the production of G&S that make a product or service more valuable
Benchmarking
examining whether a firm has resources & capabilities to perform better than competitors
a two state decision model in the value chain
do we really need to perform this activity in-house?
no: outsourcing, sell the unit, or lease its services to other firms.
yes: do we have the resources and capabilities that add value in a way better than rivals do?
yes: keep doing
no: acquiring necessary resources and capabilities in-house
or
accessing resource and capabilities through strategic alliance
Outsourcing
touring over an organizational activity to an outside supplier
Captive sourcing / FDI
setting up subsidiaries abroad so that the work done is in house but the location is foreign
offshoring
outsourcing to an international or foreign firm
inshoring
outsourcing to a domestic firm
analyzing resources and capabilities with a trio framework
resources-based view focusing on the:
VALUE: value-adding resources lead to a competitive advantage
RARITY: valuable & rare resources provided competitive advance,
valuable & common resources at best lead to competitive parity
IMITABILITY: resources that are hard to imitate offer competitive advantages
