Internal Analysis

Question 1

Tangible resources are

Answer 1

financial
organizational
physical
technological

Question 2

Financial resource is

Answer 2

capacity to borrow

ability to generate funds through internal operations

Question 3

organizational

Answer 3

Formal reporting structures

Question 4

Physical resources

Answer 4

plant equipment and location
distribution facilities
product inventory

Question 5

technological resources

Answer 5

copy rights, patents, trademarks, secrets, etc.

Question 6

3 intangible resources are

Answer 6

Human
Innovation
Reputational

Question 7

Human resources

Answer 7

Knowledge
trust
skills
abilities to collaborate

Question 8

Innovation Resources

Answer 8

Ideas
scientific capabilities
capacity to innovate

Question 9

Reputational resources

Answer 9

brand name
perception of product quality, durability, reliability
positive reputation with stakeholders such as suppliers and customers

Question 10

Capabilities are

Answer 10

• a result of combining a tangible with an intangible resource
• The foundation for building core competencies and hopefully competitive advantages

Question 11

Core Competencies are

Answer 11

• capabilities that are a source of competitive advantage for a firm over its rivals
• ## what they do well over their competitors

Question 12

Two tools to help identify the core competencies

Answer 12

VRIO and value chain analysis

Question 13

4 criteria of VRIO are

Answer 13

Valuable, Rare, Costly to Imitate, Non-substitutable

Question 14

What is the difference between core competencies and capabilities

Answer 14

core competencies have a sustained long term advantage and satisfy all 4 criteria for the VRIO

Question 15

What is a value chain analysis

Answer 15

helps firms understand the parts of its operations that create value and those that do not.
They are activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers.
They also include activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing

Question 16

Areas where you can create customer value (Value Chain)

Answer 16

Supply-chain management
follow up services
operations
marketing
distribution

Question 17

how to create value through support functions (think bubbles)

Answer 17

leverage finance, human resources and management information systems

Question 18

When should a firm consider outsourcing?

Answer 18

When they cannot create value in either value chain activity or support function.
It increases their flexibility, mitigates risks and reduces their capital investments.
They should do it when they have a substantial disadvantage to competitors in that area