Chapter 3 Flashcards
Define Organization
Stable formal social structure that takes resources from the environment and produces outputs.
Routines are ?
Standard operation procedures developed over time.
Give an Example of Disruptive technologies
Car substituting a horse carriage. An mp3 player substituting Cd players.Called disruptive because wipes out whole industries.
Transaction cost theory refers to … ?
Firms or individuals goal to minimize transaction cost , just like minimizing production cost.
Agency theory is ?
A firm that employs different interested parties but require supervision.
What is the function of Competitive forces model?
TO illustrate the general view of firm its competitors as well as firm’s environment.
Ability of customers to switch to competitors product easily called ?
Product differentiation.
Efficient Customer Response system function is ?
Linking customer behaviour to product availability
An example of electronic payment system is ?
PayPal
Ability to customize mass production product is called ?
Mass Customization.
Define Switching Cost?
Cost associated with switching from one product to another.
What does Value Chain Model Do ?
Highlights specific activity where competitive strategy can be applied.
Primary activities are ?
Directly related to production and distribution of the firm’s product.
Support activities are ?
making the delivery of primary activities possible.
Benchmarking is important because ?
Measures the firm’s performance against strict standards .
