Chapter 3 Flashcards
Distinctive Competencies
Firm-specific strengths that allow a company to differentiate its products and/or achieve substantially lower costs to achieve a competitive advantage
Resources
Assets of a company
Process Knowledge
Knowledge of the internal rules, routines, and procedures of an organization that managers can leverage to achieve organizational objectives
Socially Complex
Something that is characterized by, or is the outcome of, the interaction of multiple individuals
Tacit
A characteristic of knowledge of skills such that they cannot be documented or codified but may be understood through experience or intuition
Organizational Architecture
The combination of the organizational structure of a company, its control systems, its incentive systems, its organizational culture, and it human-capital strategy
Intellectual Property
Knowledge, research, and information that is owned by an individual or organization
Basis Factors of Production
Resources sucha s land, labor, management, plants, and equipment
Advanced Factors of Production
Resources such as process knowledge, organizational architecture, and intellectual property that contribute to a company’s competitive advantage
VRIO Framework
A framework mangers use to determine the quality of a company’s resources, where V is Value, R is rarity, I is inimitability, and O is organization
Barriers to imitation
Factors or characteristics that make it difficult for another individual or company to replicate something
Casual Ambiguity
When the way that one thing, “A”, leads to an outcome (or causes) “B”, is not clearly understood
Value Chain
The concept that a company consists of a chain of activities that transforms inputs into outputs
Primary Activities
Activities related to the design, creation, and delivery of the product, its marketing, and its support and after-sales service.
Support Activities
Activities of the value chain that provide inputs that allow the primary activities to take place.
