Ch.4 Managing Company Resources Flashcards
the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals.
Resource-based theory
an asset that is valuable, rare, difficult to imitate, and non-substitutable.
Strategic Resource
one that will endure over time and
help the company stay successful far into the future.
Sustained competitive advantage
*when given the 4 strategic qualities
resources than can be readily seen, touched, and quantified, such as physical assets, property, plant, equipment, and cash.
Tangible resources
resources that are quite difficult to see, touch, or quantify, such as the knowledge and skills of employees, a company’s reputation, and a company’s culture.
Intangible resources
- Refers to what the organization can do.
- Capabilities tend to arise over time as a company takes actions that build on its strategic resources.
Capabilities
one that is skilled at continually updating its array of capabilities in order to keep pace with changes in its environment.
Dynamic Capability
A set of activities that an organization
performs especially well.
- creates a competitive advantage for a company.
Distinctive Competence
provides important insights into how to convince customers to purchase desirable goods and services.
Marketing Mix (The 4 P’s)
- A company’s product is what it sells to customers.
- The price of a good or service should provide a good match with the value offered.
- Place can refer to a physical purchase point as well as a distribution channel.
- Promotion consists of the communications used to market a product, including advertising, public relations, and other forms of direct and indirect selling.
The 4 P’s of the Marketing Mix
Refers to creations of the mind, such as
inventions, artistic products, and symbols.
Four main types: patent, trademarks, copyrights, and trade secrets
Intellectual property
Legal decrees that protect inventions from direct imitation for a limited
period of time.
Patents
Phrase, picture, name, or symbol used to identify a particular organization.
Trademarks
Provides exclusive rights to the creators of original artistic works
such as books, movies, songs, and screenplays.
Copyrights
Formulas, practices, and designs that are central to a company’s business and that remain unknown to competitors.
Trade secrets
A tool that charts the path by which products and services are created and eventually sold to customers.
- include primary and support activities
Value Chain
Actions that are directly involved in the creation and distribution of goods and services.
physical jobs that create product
Primary Activities
Refer to the arrival of raw materials.
primary activity
Inbound Logistics
Refer to the actual production process
primary activity
Operations
The departure of finished goods.
primary activity
Outbound Logistics
Activities used to attract potential customers and convince them to make purchases.
primary activity
Marketing and Sales
Refers to the extent to which a company provides assistance to their customers.
primary activity
Service
Action not not directly involved in the evolution of a product but that instead provides important underlying support for primary activities.
background activities
Support Activities
Refers to how the company is organized and led by executives.
support activities
Company Infrastructure
Involves the recruitment, training, and compensation of employees.
support activities
Human resource management
Refers to the use of computerization and
telecommunications to support primary activities.
support activities
Technological Development
The process of negotiating for and purchasing raw materials.
support activities
Procurement
A system of people, activities, information, and resources involved in creating a product and moving it to the customer. It is a broader
concept than a value chain.
* crucial for our job career
Supply Chain
on exam
Focus on the total value added to the customer.
4 required components
Best value supply chains
-
Speed (or “cycle time”) is the time duration from initiation to completion of the production
and distribution process. - Quality refers to the relative reliability of supply chain activities.
- Supply chains efforts at managing cost involve enhancing value by either reducing
expenses or increasing customer benefits for the same cost level. - Flexibility refers to a supply chain’s responsiveness to changes in customers’ needs.
4 required components
Refers to the use of supply chains as a
means to create competitive advantages and enhance company performance.
Strategic Supply Chain Management
The supply chain’s relative capacity to act rapidly in response to dramatic changes in supply and demand.
Agility
Refers to a willingness and capacity to reshape supply chains when necessary
Adaptability
Refers to creating consistency in the interests of all participants in a supply chain. In many situations, this can be accomplished through carefully writing incentives into contracts.
Alignment
Theoretical perspective that contends that an
organization can, at least in part, create an environment for itself that is beneficial to the organization by putting strategies in place that
reshape competitive conditions in a favorable way.
Enactment
Theoretical perspective that contends
that organizations are very limited in their ability to adapt to the
conditions around them.
Environment determinism
Examines the extent to which companies copy each other’s strategies.
Institutional Theory
Theory that centers on whether it is
cheaper for a company to make or to buy the products that it needs.
Transaction cost economics
Occurs when a company enters the
business of one of its suppliers.
Backward integration strategy
A technique for understanding a company’s situation that considers its strengths and weaknesses along with the opportunities and threats that exist in the company’s environment.
SWOT Analysis
