Chapter 7 - Resources Flashcards
Describe shortly the main focus in exploiting existing resources
Focus on the effective implementation of the existing resource
- Short term
- Stability
Describe potential advantages VS risks with exploiting existing resources
Advantage: Control over the resources
Risk: Limits potential development, and sets boundaries of “what is possible”
Describe shortly the main focus in exploring new resources and discuss any advantages VS risks
Focus on exploring and developing new resources.
(Long-term)
- Advantage: New resources can be catalyst for creative development of the opportunity
- Risk: Limits the control over the resources
Describe the outside-in argument
Creating sustained competitive advantage comes through better positioning in the market and differentiation from your customers
Describe the inside-out argument
Sustained competitive advantage is best established within the organisation through its unique combination of resources
Describe the resource theory
The best means by which both entrepreneurs and existing organisations gain sustained competitive advantage through control of valuable resources
Describe features of a valuable firm resource
- Be valuable, in the sense that it exploits opportunities and neutralizes threats
- It must be rare among competition
- Be imperfectly imitable
- Not be strategically equivalent substitutes that are valuable
Name the three categories of resources
- Financial
- Human
- Social
Give examples of financial resources
- Equity capital
- Debt capital
More
Give examples of human resources
- Education
- Knowledge
- Experiences
- Motivation
Give examples of social resources
- Entrepreneurial role models
- Large network
- Diverse networks
- Supportive friends
- Information and ideas
- Emotional support and trust
Why do firms need resources? Discuss
What is the role of networks in acquiring resources for ventures? Discuss
Discuss the advantages and disadvantages of the following financing sources to new
ventures: (1) venture capital, (2) business angels, and (3) crowdfunding
What is competetive advantage?
A valuable strategy a firm created and has implemented which
is not being implemented by any current or potential
competitors (Barney, 1991)
Describe financial bootstrapping
Get what you can for free:
-Example: asking family members to help out with some work at no
cost
Borrow, share & exchange resources
-Example: sharing office space with another company
What is bricolage?
Resourced are recombined and used in ways for which they
were not originally designed (Baker & Nelson, 2005)
Describe the four elements of the SWOT analysis and how they interact with each other
- Strenghts
- Weaknesses
- Opportunities
- Threats
Discuss
What are the roles of resources in the process of evaluating an
opportunity? Discuss
What are the roles of resources in the process of organizing an
opportunity? Discuss
Can resource exploitation and exploration co-exist or mutually
exclude? Any example? Discuss
Why do firms need resources?
- To develop a new product or service?
* To sustain competitive advantage?
How do you obtain competetive advantage?
Resources must be valuable: Help generate and implement
efficient strategy, exploit opportunities and minimize threats
•Resources must be rare: Hard to copy, duplication not possible
at price low enough to leave profits, e.g., unique historical
conditions, causal ambiguity and complex social relationships
•Resources must be difficult to imitate: there cannot be
strategically equivalent substitutes for this resource that are
valuable but neither rare not imperfectly imitable
•Resources must be difficult to substitute: there cannot be
strategically equivalent substitutes for this resource that are
valuable but neither rare or imperfectly imitable.
Describe the VRIN framework
- Valuable – Help conceive of and implement efficient strategy, exploit opportunities and minimize threats
- Rare – Not widely available to competitors, e.g., good location
- Imperfectly imitable – Hard to copy, duplication not possible at price low enough to leave profits, e.g. unique historical conditions, causal ambiguity and complex social relationships
- Non-substitutable – there cannot be strategically equivalent substitutes for this resource that are valuable but neither rare not imperfectly imitable
