Chapter 6: Defining The Organization's Strategic Direction

Question 0

The internal analysis consists of support activities and primary activities. List both

Answer 0

Primary activities: inbound logistics, operations, outbound logistics, marketing, service
Support activities: firm infrastructure, HRM, technology development, procurement

Question 1

In order to assess the current position of a firm, it is important to do an external analysis. Porter’s Five Force model can be used for this. Explain the Five Force model.

Answer 1

1. The degree of existing rivalry
2. Threat of potential entrants
3. Bargaining power of suppliers
4. Bargaining power of buyers
5. Threat of substitutes

Question 2

Resources can be tacit, socially complex, or causally ambiguous. Describe each

Answer 2

Tacit resources: resources of an intangible nature (such as knowledge) that cannot be readily codified.
Socially complex resources: resources or activities that emerge through the interaction of multiple individuals.
Causal ambiguity: the relationships between a resource and the outcome it produces is poorly understood.

Question 3

What makes an ability (or set of abilities) a core competency?

Answer 3

In order for the ability(ies) to be considered a core competency, it must be a factor that differentiates it strategically. Core competencies typically combine and harmonize several different kinds of abilities.