Chapter 3 Flashcards
What is distinctive companies?
Firm-specific strengths that allow a company to differentiate its products and/or achieve substantially lower cost to achieve competitive advantage
What is process knowledge?
Knowledge of internal rules, routines, and procedures of an organization that managers can leverage to achieve organizational objectives
Process is often socially complex, what is socially complex?
Something that is characterized by, or is the outcome of, the interaction of multiple individuals
Process knowledge also often has an important tacit component, what is tacit?
Something that cannot be documented or codified but may be understood through experience or intuition.
What is organizational architecture?
Combination of the organizational structure of a company, its control system, its incentive system, organizational culture, and human capital strategy
What is advance factors of production?
Resources such as process knowledge, organizational architecture, and intellectual property that contribute to company’s competitive advantage
What is the VRIO framwork?
Framework that managers use to determine the quality of a company’s resources; Value, Rarity, Inimitability, Organization
What is barriers to imitation?
Factors or characteristic that make it difficult to imitate
What is causal ambiguity?
When they way that one thing (A) leads to an outcome/causes (B), is not clearly understood
What are the 3 profitability factors?
Value consumer placed on products, price that company chargers, cost of creating
What are the 3 profitability factors?
Value consumer placed on products (V), price that company chargers (P), cost of creating (C)
What is value chain?
Concepts that a company consist of chains of activities that transforms inputs into OUTPUTS = VALUE
What are the activities in a value chain?
Primary activities: R&D, production, marketing, and customer service
Support activities: Company infrastructure, IS/IT, Logistics, and HR
What is a support activities in the value chain?
Activities that provide inputs that allow the primary activities to take place
What is benchmarking?
Measuring how well a company is doing by comparing it to another company or itself, overtime
