CHAPTER 3 Flashcards
Refers to the economic theories of the firm that are based on the premise that a firm’s competitiveness and ability to create value is a function of the industry structure where it belongs
INDUSTRIAL ORGANIZATION
Chain of activities that a firm managed to transform inputs into outputs that provide value for customers.
VALUE CHAIN
Pertains to logistics that allows the firm to get the needed supplies and raw materials.
INBOUND LOGISTICS
Actual production or processes that a firm performs in order to directly transform inputs into marketable outputs.
OPERATIONS
Pertains to systems and channels that the firm uses to bring its products and services to customers.
OUTBOUND LOGISTICS
Pertains to the activities that communicate, inform, and educate the consumers about the value of the firm’s products and services.
MARKETING AND SALES
Known as after sales-services, this pertains to all other activities that a firm is obligated to provide to consumers after consummation of sales.
SERVICES
Refer to the organizational processes that directly add value to a firm’s products and services
PRIMARY ACTIVITIES
Support activities refer to the organizational activities that, while not directly adding value to the products and services, add value to the management and coordination of primary processes.
SECONDARY ACTIVITIES
Refers to the organizational structure, operating policies, compensation and penalties systems, hierarchy and accountability, and management styles.
FIRM INFRASTRUCTURE
Pertains to hiring, training, developing and motivating personnel for the organization.
HUMAN RESOURCE MANAGEMENT
This refers to the tools that the firm uses to produce its products and services, including equipment, software, technical knowledge, procedures and protocols.
TECHNOLOGY
Pertains to the ability of the firm to find the best suppliers, with best quality supplies and materials, for its operations.
PROCUREMENT
Refers to the most essential premises behind a firm’s existence.
BUSINESS MODEL
Business model involved the acquisition of products from suppliers presenting these in appealing manner for shoppers to browse
RETAIL STORES
Business model involves the processing of raw ingredients into interesting dishes, presenting these in a sensory-stimulating environment
RESTAURANTS
Business model relied on the provision of compelling content to s specialized market in exchange for providing advertising space
MAGAZINES
Company builds a highly popular business concept and brand.
FRANCHISING
Company creates popular brand or other intellectual property.
LICENSING
Company offers several tiers of service, with the most basic services being offered for free, which will attract a sizeable number of users.
FREEMIUMS
Useful tool in illustrating what business model is all about
STRATEGY MAPS
A four question framework for analysis that seeks to understand how a particular resource of a firm can potentially be of strategic value, and whether this value is short-term or long term in nature.
VRIO
VRIO stands for
VALUE, RARITY, IMITABILITY, AND ORGANIZATION
Framework based on the resource based view that a firm’s distinctive resources are what can bring value to its operations.
VRIO
Start up funding enterprises have a term for the possession of unique resources that give a firm an advantage over other firms
UNFAIR ADVANTAGES
