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International Business > Ch.13 Firm as a Value Chain > Flashcards

Ch.13 Firm as a Value Chain Flashcards

1
Q

Name the three elements of competitive advantage.

A
  1. Core competencies
  2. Capabilities
  3. Resources (Both tangible and intangible)
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2
Q

What are a company’s core competencies?

A
  • Links resources and capabilities
  • Essential to creating or capturing value in a superior way
  • Should be protected and sustained
  • Lead to sustainable competitive advantage when done well
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3
Q

Describe competitive advantage.

A
  • A superior ability to create and capture value
  • Relies upon the effective integration of resources, capabilities, core competencies
  • Is difficult though not impossible to imitate by others
  • Does not last forever (Competition tries to catch up, environment changes, customer preferences shift)
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4
Q

Name tangible resources

A
  • Financial resources
  • Organization resources
  • Physical resources
  • Technological resources
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5
Q

List intangible resources

A
  • Human resources (Knowledge, trust, skills, ability to collaborate)
  • Innovation resources (Ideas, scientific knowledge. capacity to innovate)
  • Reputational resources
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6
Q

What is the core of competitive advantage?

A

Leveraging core competencies to exploit opportunities in the external environment

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7
Q

What is the ultimate goal of strategic competitiveness?

A

For firms to achieve sustainable competitive advantage that will earn them above average-returns

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8
Q

What is the most important sources of competitive advantage?

A

Core competencies

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9
Q

What does it mean to create value?

A
  • Value is measure by product performance characteristics and product attributes for which customers will pay
  • Firms create value by innovatively bundling and leveraging their resources and capabilities
  • Superior value leads to above-average returns
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10
Q

Why does competitive advantage not last?

A

Value-creating strategies may be successfully imitated or duplicated by competitors

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11
Q

Sustainability of a competitive advantage is a function of

A
  1. Rate of core competency obsolescence because of environmental changes
  2. Availability of substitutes for the core competence
  3. Imitability of the core competence
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12
Q

Name the four criteria of Sustainable Competitive Advantage.

A
  1. Valuable capabilities
  2. Rare Capabilities
  3. Costly-to-Imitate capabilities
  4. Nonsubstitutable capabilities
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13
Q

What is value chain analysis?

A
  • Allows a firm to understand the parts of its operations that create value and those that do not.
  • Is a template that firms use to understand their cost operation and identify multiple means that might be used to facilitate implementation of a chosen business-level strategy
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14
Q

Describe the primary activities in a value chain.

A

Are involved with:
- A product’s physical creation
- A product’s sale and distribution to buyers
- A product’s service after the sale

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15
Q

Describe the support activities in a value chain.

A

Provide the assistance necessary for the primary activities to take place

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16
Q

What must a resource or capability allow to be a source of competitive advantage?

A
  1. An activity that is superior to the way competitors do it
  2. A value-creating activity that competitors cannot complete
17
Q

List all primary activities in a value chain.

A
  1. Product Design
  2. Operations
  3. Outbound Logistics
  4. Marketing
  5. Service
18
Q

List all support activities in a value chain.

A
  1. Materials & Equipment
  2. Firm Infrustructure
  3. Human Resources
  4. Systems & Solutions
19
Q

What are the three configurations of the value chain?

A
  1. Concentrated configuration (Putting all value chain activities in one location)
  2. Dispersed (Distributing value chain activities around the world)
  3. Location economies (performing different value chain activities in different locations)
20
Q

What must you consider when configuring the value chain?

A
  • Where to go
  • Business environmental quality
  • Innovation context
  • Economies of scale
  • Labour costs
  • Logistics
  • Digitization
21
Q

What is coordinating the value chain what must you consider?

A

Coordination is linking the value chain activities.
Influencing factors:
- Operational obstacles
- Core competencies
- Subsidiary networks

22
Q

Describe in-house (internalize).

A
  • Develop, extend, and leverage firm’s capabilties
  • Preserve felxibility/make quick adjustments
  • Retain control of IP
23
Q

Describe Outsource (externalize).

A
  • Focus only on core competencies
  • Cede low-value or less strategic activities to external specialists
  • Benefit from industry best practices

International Business (6 decks)

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