9/17 Class Flashcards
Internal Analysis
SWOT
comparative look at a firm’s capabilities
SWOT Analysis
SW is internal
Strengths and Weaknesses
OT is external
Opportunities and Threats
Internal analysis theory behind it
Resource Based view
Resource Based View
VRIO Framework
VRIO Framework
Value
Rarity
Imitability
Organization
key assumptions
resource heterogeneity - some firms are more skilled in accomplishing the activity than others
resource immobility
role of resources
resources - what you have
tangible and intangible
due today
choose public company for final project by the end of the day
capabilities
what a firm can do
a company’s skills at coordinating and using its resources
ex:
corporate HQ: expertise in portfolio
R & D: Speed of new product development
manufacturing: continual improvement in the process
VRIO Framework
Valuable: Dose the resource or capability help a firm neutralize a threat or exploit opportunities?
Rare: The resource or capability is not possessed by many other firms
Costly to Imitate(Imitability): Resources or capabilities that other firms cannot develop easily, usually due to:
time: Unique historical condition or path dependence
complexity: social complexity or causal ambiguity
Organization: is the form organized to exploit its full potential
Value chain
Raw materials
intermediate goods
manufacturing
marketing sales
Value chain’s rule
shows the companies linked materials
The VRIO Framework* slide on test
No No
Yes
Yes
Yes
