3. The Internal Organization Flashcards
Resources are a foundation for ______.
strategy
Unique bundles of resources lead to ____________.
competitive advantages
What is “smart growth”?
A firm’s ability to manage needs to grow and growth itself.
Sustainability of a competitive advantage depends on which 3 factors?
1) Rate of core competence obsolesce because of environmental changes.
2) Availability of substitutes for the core competence.
3) Imitability of the core competence.
Core rigidities prevent firms from developing new _____________.
competitive advantages
Define a ‘global mindset’.
Ability to manage an internal organisation without depending on assumptions about a single country, culture or context.
Resources are the source of ____________________.
capabilities that develop core competences or competitive advantages.
Value is measured by ___________.
a product’s performance and attributes to which customers are willing to pay for.
Exploiting core competences creates _________ for customers.
value
Firms create value by ________________.
bundling/leveraging resources and capabilities.
Firms’ most important sources of competitive advantages are _____________.
core competences and product-market positions
True or false: One half of organisational decisions fail.
True
3 conditions that affect managerial decisions about resources, capabilities and core competencies:
1) uncertainty
2) complexity
3) intraorganisational conflicts (among managers within organisation)
What is judgement?
The capability of making correct decision when no models/rules/data are reliable or complete.
GE managers’ ability to exercise good judgement is seen in two ways:
1) GE created more value for its stakeholders than other companies.
2) Former GE managers are now CEOs of other companies.
Tangible resources are ______________.
assets that can be observed and quantified
Intangible resources are ______________.
assets that are difficult for competitors to analyse and imitate
List four types of tangible resources.
1) financial
2) organisational
3) physical
4) technological
List three types of intangible resources.
1) human
2) innovation
3) reputational
List two financial resources.
1) borrowing capacity
2) ability to generate internal funds
List one organisational resource.
Firm’s formal reporting structure; formal planning, controlling and coordinating systems.
List two physical resources.
1) sophistication and location of a firm’s plant and equipment
2) access to raw materials
List one technological resource.
Stock of technology (patents, trademarks, copyrights, trade secrets).
List four human resources.
1) knowledge
2) trust
3) managerial capabilities
4) organisational routines
