barney's article about VRIO

Question 1

VRIO

Answer 1

Not Barney’s theory but he supports it

are the resources and capabilities valuable?

are they Rare

are they Imitable

are they organized

Question 2

Which are the two components of VRIO (not what VRIO means)

Answer 2

internal environment and external environment

Question 3

internal environment

Answer 3

internal resources and capabilities of a firm

Question 4

external environment

Answer 4

business and societal trends

industry conditions

competitive environment

its only half the story

Question 5

Bareney’s article, what does it do?

Answer 5

Looks inside organization with respect to creating competitive advantage

provides a tool to assess internal resources and capabilities

Question 6

Barney’s major claims

Answer 6

analyzing firm’s external environment is not enough to understand strategic success

analysis of competitive implications of firm’s internal strengths and weaknesses needed

firm will have a sustained competitive advantage is resources and abilities and valuable, rare, inimitable and organized

Question 7

value of ressources

Answer 7

useful to exploit opportunities and neutralize threats?

if so then it equal in competitions and not disadvantage

can be valuable in different ways, depending of the firm

Question 8

rareness of ressources

Answer 8

how many firms have them?

if its valuable and rare, its a temporary competitive advantage

Question 9

imitability of ressources

Answer 9

are they costly to get?

how much history and reputation do they have or does the company have?

if they are valuable, rare and costly to imitate, then they are sustained competitive advantage

Question 10

organization of firm

Answer 10

is the firm organized to exploit these resources?

if VRIO all in place, very gyu sustained competitive advantage

if company is not organized, they can miss opportunities

Question 11

what do the resources and capabilities include?

Answer 11

financial assets

physical assets

human assets

organizational assets

Question 12

financial assets

Answer 12

debt

equity

retained earnings

etc

Question 13

physical ressources

Answer 13

machines

manufacturing facilities

buildings

etc

Question 14

human assets

Answer 14

experience

knowledge

judgement

risk taking

propensity

Question 15

organizational assets

Answer 15

history

relationships

trust

organizational culture of groups of individuals associated with a firm

firms’ formal reporting structure

explicit management control systems

compensation policies

Question 16

Importance of history in imitability of resources and capabilities

Answer 16

unique personalities

experiences

relationships

history can greatly affect the reputation and influence of a firm
ex: government support

Question 17

importance of small decisions when imitating resources

Answer 17

frequently, competitive advantage depends on numerous successful small decisions

success is doing a lot of small things right

ex: The Mailbox being able to manage finance, accounting, HR, production, etc. so efficiently is hard to imitate

Question 18

socially complex resources

Answer 18

organasitonal Phenomenon embedded in company

like the idea of friendships, teamwork, culture, trust, etc

they put emphasis on it and represents them, its hard to imitate

Question 19

what can affect the value of a resource

Answer 19

technology ,customer taste and industry structure

making investment nearly can add value while not investing hinders opportunities

Question 20

what do resource managers have to check about the company’s ressources

Answer 20

they have to see if they still have value after changes in the industry

Question 21

what aspect of history makes resources hard to imitate

Answer 21

when getting rare and valuable resources depends on unique historical circumstances

Question 22

why are numerous successful small decisions a successful advantage

Answer 22

they are invisible to firms trying to imitate their resources and abilities

Question 23

what are complementary resources part of the organization of a firm that affects the value of overall resources?

Answer 23

formal reporting structure

explicit management and control systems

compensation policies

Question 24

why are complementary ressources in a company’s organization important?

Answer 24

applied together they be gyu affff

Generates almost no competitive advantage alone

can allow organizations to exploit opportunities but if not organized, they can miss them