Assessing the Internal Environment of the Firm Flashcards
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a strategic analysis of an organization that uses value-creating activities
3.1. Value-chain analysis
sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale, including inbound logistics, operations, outbound logistics, marketing and sales, and service.
3.2. Primary activities
activities of the vale chain that either add value by themselves or add value through important relationships with both primary activities and other support activities, including procurement, technology development, human resource management, and general administration.
3.3. Support activities
– receiving, storing, and distributing inputs of a product.
3.4. Inbound logistics
all activities associated with transforming inputs into the final product form.
3.5. Operations
collecting, storing, and distributing the product or service to buyers.
3.6. Outbound logistics
activities associated with purchases of products and services by end users and the inducements used to get them to make purchases.
3.7. Marketing and sales
actions associated with providing service to enhance or maintain the value of the product.
3.8. Service
– the function of purchasing inputs used in the firm’s value chain, including raw materials, supplies, and other consumable items as well as assets such as machinery, laboratory, equipment, office equipment, and buildings.
3.9. Procurement
activities associated with the development of new knowledge that is applied to the firm’s operations.
3.10. Technology development
activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel.
3.11. Human resource management
– general management, planning, finance, accounting, legal and government affairs, quality management, and information systems; activities that support the entire value chain and not individual activities.
3.12. General administration
collaborative and strategic exchange relationships between value-chain activities either (a) within firms or (b) between firms. Strategic exchange relationships involve exchange of resources such as information, people, technology, or money that contribute to the success of the firm.
3.13. Interrelationships
– perspective that firms’ competitive advantages are due to their endowment of strategic resources that are valuable, rate, costly to imitate, and costly to substitute.
3.14. Resource-based view (rBV) of the firm
organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, and technological resources.
3.15. Tangible resources
organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices, including human resources, innovation resources, and reputation resources
3.16. Intangible resources
the competencies and skills that a firm employs to transform inputs into output.
3.17. Organizational capabilities
a characteristic of resources that is developed and/or accumulated through a unique series of events.
3.18. Path dependency
a characteristic of a firm’s resources that is costly to imitate because a competitor cannot determine what the resource is and/or how it can be re-created.
3.19. Causal ambiguity
a characteristic of a firm’s resources that is costly to imitate because the social engineering require is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, and reputation with suppliers and customers.
3.20. Social complexity
- a method of evaluating a company’s performance and financial well-being through ratios of accounting values, including short-term solvency, long-term solvency, asset utilization, profitability, and market value ratios.
3.21. Financial ratio analysis
a method of evaluating a firm’s performance using performance measures from the customer, internal, innovation and learning, and financial perspectives.
3.22. Balanced scorecard –
measures of firm performance that indicate how ell firms are satisfying customers’ expectations.
3.23. Customer perspective
measures of firm performance that indicate how well firms’ internal processes, decisions, and actions are contributing to customer satisfaction.
3.24. Internal business perspective
measures of firm performance that indicate how ell firms are changing their product and service offerings to adapt to changes in the internal and external environments.
3.25. Innovation and learning perspective
measures of firms’ financial performance that indicate how well strategy, implementation, and execution are contributing to bottom-line improvement.
3.26. Financial perspective
