Chapter 4 Flashcards
Title of Chapter 4
Leveraging Resources and Capabilities
resource-based view
A leading perspective in global business that posits that firm performance is fundamentally driven by differences in firm-specific resources and capabilities
SWOT analysis
An analytical tool for delineating one firm’s
strengths (S)
weaknesses (W)
opportunities (O)
threats (T)
resource & capability
The tangible and intangible assets a firm uses to choose and implement its strategies
tangible resources and capabilities
Assets that are observable and easily quantified
intangible resources and capabilities
Assets that are hard to observe and difficult (or sometimes impossible) to quantify
value chain
A stream of activities from upstream to downstream that add value
benchmarking
An examination as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors
commoditization
A process of market competition through which unique products that command high prices and high margins gradually lose their ability to do so, thus becoming commodities
outsourcing
Turning over an organizational activity to an outside supplier that will perform it on behalf of the focal firm
offshoring
Outsourcing to an international or foreign firm
inshoring
Outsourcing to a domestic firm
captive sourcing
- Setting up subsidiaries abroad the work done is in-house but the location is foreign
- Conceptually, this is also known as foreign direct investment (FDI)
VRIO framework
The resource-based framework that focuses on the aspects of resources and capabilities of
value (V)
rarity (R)
imitability (I)
organizational (O)
causal ambiguity
The difficulty of identifying the causal determinants of successful firm performance
