Chapter 3

Question 1

What is value creating measured by?

Answer 1

Products performance characteristics
Products Attributes for which customers are willing to pay

Question 2

What 3 conditions make internal analysis difficult?

Answer 2

Uncertainty
Complexity
Intraorganizational conflict

Question 3

What are the two different types of resources

Answer 3

Tangible & Intangible

Question 4

Do resources create value?

Answer 4

No, but combined they create capabilities which become core competencies.

Question 5

What are capabilities and what are they used for?

Answer 5

Combines tangible and intangible resources
To complete organizational tasks required to produce, distribute, and service good & services provided.

Question 6

What are core competencies?

Answer 6

Capabilities serving as a source of competitive advantage

Question 7

What are the four criteria of sustainable competitive advantage

Answer 7

Valuable, rare, costly, and non substitutable capabilities = core competencies

Question 8

What are the five value chain activities of Value Chain Analysis?

Answer 8

Supply Chain Management
Operations
Distribution
Marketing
Follow-up service

Question 9

What are the support functions of Value Chain Analysis?

Answer 9

Finance
HR
Management Information Systems

Question 10

What are the benefits of effective outsourcing?

Answer 10

High flexibility
Mitigation of risk
Low capital investments

Question 11

What are the concerns of outsourcing?

Answer 11

Potential loss of firms ability to innovate
Loss of jobs within local firm