CHAPTER 5 Flashcards
A name that identifies a particular company’s product in the mind of the consumer
brand
The mix of activities a company performs to earn a profit.
business model
A corporation’s ability to exploit
its resources.
capability
The process of analyzing and ranking possible investments in terms of the additional outlays and additional receipts that will result from each investment.
capital budgeting
A cross-functional integration and coordination of capabilities.
competency
An assemblage of legally independent firms (subsidiaries) operating under one corporate umbrella but controlled through the subsidiaries’ boards of directors.
conglomerate structure
A representation that indicates how durable and imitable
an organization’s resources and capabilities are.
continuum of sustainability
A collection of corporate capabilities that cross divisional borders and are widespread within a corporation, and is
something that a corporation can do exceedingly well
core competencies
A collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted
from one generation of employees to another.
corporate culture
A widely held perception of a company by the general public
corporate reputation
A firm’s competencies that are superior to those of competitors.
distinctive competencies
An organizational structure in which employees tend to be functional specialists organized according to product/market distinctions
divisional structure
The rate at which a firm’s underlying resources and capabilities depreciate or become obsolete
durability
A process in which unit costs are reduced by making large numbers of the same product.
economies of scale
A process in which unit costs are reduced when the value chains of two separate products or services share activities, such as the same marketing channels or manufacturing facilities.
economies of scope
A conceptual framework that states that unit production costs decline by some fixed percentage each time the total accumulated volume of production in units doubles.
experience curve
Knowledge that can be easily articulated and communicated.
explicit knowledge
The ratio of total debt to total assets.
financial leverage
An organizational structure in which employees tend to be specialists in the business functions important to
that industry, such as manufacturing, sales, or finance.
functional structure
A table that organizes internal factors into strengths and weaknesses and how well management is responding to these specific factors
IFAS (Internal Factor Analysis Summary)
table
The rate at which a firm’s underlying resources and capabilities can be duplicated by others.
imitability
The particular combination of key variables (product, place, promotion, and price) that can be used to affect demand and to gain competitive advantage.
marketing mix
The impact of a specific change in sales volume on net operating income
operating leverage
Internal scanning concerned with identifying an organization’s strengths and weaknesses.
organizational analysis
The formal setup of a business corporation’s value chain components in terms of work flow, communication channels, and hierarchy
organizational structures
A graph showing time plotted against sales of a product as it moves from introduction through growth and maturity to decline
product life cycle
A company’s spending on research and development as a percentage of sales revenue
R&D intensity
The balance of basic, product, and process research and development
R&D mix
The ability of competitors to duplicate resources and imitate another firm’s success
replicability
A company’s physical, human, and organizational assets that serve as the building blocks of a corporation
resource
A structure for new entrepreneurial firms in which the employees tend to be generalists and jacks-of-all-trades
simple structure
A division or group of divisions composed of independent product-market segments that are given primary authority for the management of their own functions.
strategic business unit (SBU)
The formation of networks for sourcing raw materials, manufacturing products or creating services, storing and distributing goods, and delivering goods or services to customers and consumers
supply chain management
Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation’s culture
tacit knowledge
A corporation’s proficiency in managing research personnel and integrating their innovations into its day-to-day operations.
technological competence
The displacement of one technology by another.
technological discontinuity
The process of taking a new technology from the laboratory to the marketplace
technology transfer
The ability of competitors to gather the resources and capabilities necessary to support a competitive challenge
transferability
The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm’s strategy.
transparent
A linked set of value-creating activities that begins with basic raw materials coming from suppliers and ends with distributors getting the final goods into the hands of
the ultimate consumer.
value chain
A group of geographically and/or organizationally dispersed coworkers that are assembled using a combination of telecommunications and information technologies to accomplish an organizational task.
virtual teams
Barney’s proposed analysis to evaluate a firm’s key resources in terms of value, rareness, imitability, and organization.
VRIO framework
level of resource sustainability
Slow-Cycle Resource
Standard-Cycle Resource
Fast-Cycle Resources
Some of the many
possible business models are:
Customer solutions model
Profit pyramid model
Multi-component system/installed base model
Advertising model
Switchboard model
Time model
Efficiency model
Blockbuster model
Profit multiplier model
Entrepreneurial model
De Facto industry standard model
basic organizational structure
Simple structure
functional structure
Divisional structure
