Ch 4 Quiz 3

Question 1

Define Resources

Answer 1

What a firm HAS (Tangible and Intangible assets!)

Tangible- physical (ex: monetary, faculty)
Intangible- non-physical (ex: brand, patents, services)

Question 2

Explain VRIO

Answer 2

V: Valuable
R: Rare
I: Costly to Imitate
O: Organized to Capture Value

Used to find advantages, disadvantage, parity to understand Strengths and Weaknesses (Or find a way to outsource)

Question 3

Define Core Regidity

Answer 3

When a firm no longer does something effectively (Does not adjust/stops doing it well)

Question 4

Define Dynamic Capabilities

Answer 4

What a firm does well- with the ability to do something over time that is adaptable@ (Adjusts to prevent rigidity)

ex) Coke’s White Bear

Question 5

Dynamic Capability Perspective

Answer 5

What it does and how it adapts over time, due to our fast-paced environment

Question 6

What are resourced stocks?

Answer 6

Part of the Bathtub analogy that describes a current level of intangible resources a firm has. (Known as the four faucets-builds over time).

Question 7

What are Resource Flows?

Answer 7

It is the environment of the bathtub that goes through the entire cycle from the faucets (inflow) of water to the collection of intangibles, through the outflow of things people forget about such as leaks (forget)

Question 8

Does your professor like SWOT? WhY?

Answer 8

NOOOOOO, It is not looking at all of the different external elements. If you forget about the analysis of PESTLE, you may regret not checking it later (you may miss an important external factor). She suggests first doing PESTLE then converting it to SWOT to understand the Opportunities and Threats!