Cap 4

Question 1

Resource-based View

Answer 1

When the industry environment is volatile, internal resources and
capabilities offer a more stable basis for strategy than an external
market focus
-Resources and capabilities are the primary sources of competitive
advantage

Question 2

Competency

Answer 2

possession of sufficient knowledge or skill

Question 3

Core competency

Answer 3

a collection of competencies that cross divisional boundaries, is wide-spread
throughout the corporation and is something the corporation does
exceedingly well

Question 4

Distinctive competency

Answer 4

core competencies that are superior to those of the competition

Question 5

Capabilities

Answer 5

business processes and routines that manage the interaction
among resources to turn inputs into outputs

Question 6

Strategic capabilities

Answer 6

The resources and competences of an organization needed for it to survive and prosper

Question 7

Competitive Advantage

Answer 7

an attribute that allows an organization to outperform its competitors

Question 7

Advantage

Answer 7

superiority of position or condition

Question 8

Sustained Competitive Advantage

Answer 8

ability to possess VRIO

Question 9

VRIO framework

Answer 9

-Valuable
-Rareness
-Imitability
-Organization

Question 10

Valuable

Answer 10

Does it provide customer value and competitive advantage

Question 11

Rareness

Answer 11

Do no other competitors possess it at the same level

Question 12

Imitability

Answer 12

the rate at which a firm’s underlying resources, capabilities, or core competencies can be duplicated by others
* Transparency: the speed at which other firms under the relationship of resources and capabilities support a successful strategy
* Transferability: the ability of competitors to gather the resources and capabilities necessary to support a competitive challenge
* Replicability: the ability of competitors to use duplicated resources and capabilities to imitate the other firm’s success
- Explicit knowledge: knowledge that can be easily articulated and communicated
- Tacit knowledge: knowledge that is not easily communicated because it is deeply rooted in employee experience or in the company’s culture

Question 13

Organization

Answer 13

the organization must be structured and aligned around the true competitive advantages of the business

Question 14

Business Models

Answer 14

a company’s method for making money in the current business environment
* includes the key structural and operational characteristics of a firm—how it earns revenue and makes a profit

Question 15

Value Chain

Answer 15

describes the categories of
activities within an organisation which, together, create a product or service. linked set of value-creating activities
-Raw materials
-primary manufacturing
-fabrication
-distributor
-retailer

Question 16

Value chain segments include

Answer 16

-Upstream
-Downstream

Question 17

Center of gravity

Answer 17

part of the chain that is most important to the company and the point where its core competencies lie

Question 18

primary activities

Answer 18

-Inbound logistics
-operations
-outbound logistics
-marketing and sales
-service

Question 19

support activities

Answer 19

-Firm infrastructure
-Human resource management
-technology development
-procurement

Question 20

Uses of The Value Chain

Answer 20

• A generic description of activities
• Identifying activities
  -Analysing the competitive position (using VRIO)
  -Enhance value or decrease cost

Question 21

Basic Organizational Structures

Answer 21

• Simple
• Functional
• Divisional
  -Strategic business units
  -Conglomerate

Question 22

Corporate Culture

Answer 22

the collection of beliefs, expectations, and values learned and shared by a
corporation’s members and transmitted from one generation of employees to another

Question 23

Functions of Corporate Culture

Answer 23

• Conveys a sense of identity for employees
• Generates employee commitment
• Adds to the stability of the organization as a social system
• Serves as a frame of reference for employees to understand
  organizational activities and as a guide for behavior

Question 24

Cultural intensity

Answer 24

degree to which members of a unit accept the norms, values and other
cultural content associated with the unit
- culture’s depth

Question 25

Cultural integration

Answer 25

extent of which units throughout the organization share a common
culture
-culture’s breadth

Question 26

Strategic Marketing Issues

Answer 26

-Market position
-Marketing mix
-Product life cycle

Question 27

Market position

Answer 27

refers to the selection of specific areas for marketing concentration and can be expressed regarding market, product, and geographic locations

Question 28

Marketing mix

Answer 28

-Place
-Product
-Price
-Promotion

Question 29

Product life cycle

Answer 29

-Introduction
-Growth
-Maturity
-Decline
-phaseout

Question 30

Introduction

Answer 30

-few trial of early adopters
-few competitors

Question 31

Growth

Answer 31

-trial of product/service
-entry of competitors
-undifferentiated products
-attempt to achieve trial

Question 32

shakeout

Answer 32

-growing selective of purchase
-may be many competitors
-shakeout of weakest competitors

Question 33

maturity

Answer 33

-saturation of users
-fight to maintain share
-emphasis on efficiency/low cost

Question 34

decline

Answer 34

-drop-off in usage
-exit of some competitors