CHAPTER 3

Question 1

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

Answer 1

INDUSTRIAL ORGANIZATION

Question 2

Chain of activities that a firm managed to transform inputs into outputs that provide value for customers.

Answer 2

VALUE CHAIN

Question 3

Pertains to logistics that allows the firm to get the needed supplies and raw materials.

Answer 3

INBOUND LOGISTICS

Question 4

Actual production or processes that a firm performs in order to directly transform inputs into marketable outputs.

Answer 4

OPERATIONS

Question 5

Pertains to systems and channels that the firm uses to bring its products and services to customers.

Answer 5

OUTBOUND LOGISTICS

Question 6

Pertains to the activities that communicate, inform, and educate the consumers about the value of the firm’s products and services.

Answer 6

MARKETING AND SALES

Question 7

Known as after sales-services, this pertains to all other activities that a firm is obligated to provide to consumers after consummation of sales.

Answer 7

SERVICES

Question 8

Refer to the organizational processes that directly add value to a firm’s products and services

Answer 8

PRIMARY ACTIVITIES

Question 9

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.

Answer 9

SECONDARY ACTIVITIES

Question 10

Refers to the organizational structure, operating policies, compensation and penalties systems, hierarchy and accountability, and management styles.

Answer 10

FIRM INFRASTRUCTURE

Question 11

Pertains to hiring, training, developing and motivating personnel for the organization.

Answer 11

HUMAN RESOURCE MANAGEMENT

Question 12

This refers to the tools that the firm uses to produce its products and services, including equipment, software, technical knowledge, procedures and protocols.

Answer 12

TECHNOLOGY

Question 13

Pertains to the ability of the firm to find the best suppliers, with best quality supplies and materials, for its operations.

Answer 13

PROCUREMENT

Question 14

Refers to the most essential premises behind a firm’s existence.

Answer 14

BUSINESS MODEL

Question 15

Business model involved the acquisition of products from suppliers presenting these in appealing manner for shoppers to browse

Answer 15

RETAIL STORES

Question 16

Business model involves the processing of raw ingredients into interesting dishes, presenting these in a sensory-stimulating environment

Answer 16

RESTAURANTS

Question 17

Business model relied on the provision of compelling content to s specialized market in exchange for providing advertising space

Answer 17

MAGAZINES

Question 18

Company builds a highly popular business concept and brand.

Answer 18

FRANCHISING

Question 19

Company creates popular brand or other intellectual property.

Answer 19

LICENSING

Question 20

Company offers several tiers of service, with the most basic services being offered for free, which will attract a sizeable number of users.

Answer 20

FREEMIUMS

Question 21

Useful tool in illustrating what business model is all about

Answer 21

STRATEGY MAPS

Question 22

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.

Answer 22

VRIO

Question 23

VRIO stands for

Answer 23

VALUE, RARITY, IMITABILITY, AND ORGANIZATION

Question 24

Framework based on the resource based view that a firm’s distinctive resources are what can bring value to its operations.

Answer 24

VRIO

Question 25

Start up funding enterprises have a term for the possession of unique resources that give a firm an advantage over other firms

Answer 25

UNFAIR ADVANTAGES