Chapter 3 Flashcards
Value Chain Analysis
a strategic analysis of an organization that uses value-creating activities (primary and secondary)
Primary Activities
sequential activities of the value chain that refer to physical creation of the product/service, it’s sale and transfer to the buyer, and it’s service after sale, including inbound logistics, operations, outbound logistics, marketing & sales, and service
Support Activities
Activities of the value chain that either add value by themselves or add value through important relationships with both primary activities; including procurement, technology development, human resource management, and general administration.
Inbound logistics
receiving, storing, and distributing inputs of a product
Operations
all activities associated with transforming inputs into the final product form
Outbound logistics
collecting, storing, and distributing the product or service to buyers.
Marketing and sales
activities associated with purchases of products and services by end users and the inducements used to get them to make purchases
Service
Actions associated with providing service to enhance or maintain the value of the product
Procurement
the function of purchasing inputs used in the firm’s value chain, including raw materials, supplies, and other consumable items as well as assets such as machinery, lab equipment, office equipment, and buildings.
Technology Development
activities associated with the development of new knowledge that is applied to the firms operations
Human Resource Management
Activities involved in the recruiting, hiring, training, development and compensation of all types of personnel.
General Administration
gen. management, planning, finance, accounting, legal and government affairs, quality management, and info systems; activities that support the entire value chain and not individual activities
Interrelationships
Collaborative and strategic exchange relationships between value-chain activities either (a) within firms or (b) between firms. Strategic exchange relationships involve exchange of resources such as info, people, technology, or money that contribute to the success of the firm
Resource-based view of the firm
perspective that firms’ competitive advantages are due to their endowment of strategic resources that are valuable rare, costly to imitate, and costly to substitute
Tangible resources
organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, & technological resources
Intangible resources
organizational assets that are difficult to identify and account for and are typically embedded in unique routines & practices, including HR, innovation resources, and reputation resources.
Organizational Capabilities
The competencies and skills that a firm employs to transform inputs into outputs
Strategic Resources (aka firm resource or organizational resources)
Firms’ capabilities that are valuable, rare, costly to imitate, and costly to substitute
path dependency
a characteristic of resources that is developed and/or accumulated through a unique series of events
Causal ambiguity
a characteristic of a firm’s resources that is costly imitate because a competitor cannot determine what the resource is and/or how it can be recreated
Social Complexity
a characteristic of a firms resources that is costly imitate because the social engineering required is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, and reputation with suppliers and customers
Financial Ratio Analysis
A technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation
Balanced Scorecard
A method of evaluating a firms performance using performance measures from the customers, internal, innovation & learning, and financial perspectives.
Customer Perspective
measures of firm performance that will indicate how well firms are satisfying customers’ expectations
