Introduction to IB chapter 4 Flashcards
Competitive advantage
The ability of a firm to outperform its rivals
Primary resources
Tangible and intangible assets as well as human resources that a firm uses to choose and implement its strategies
VRIO framework
A resource-based model that analyzes resources based on their value (V), rarity (R), imitability (I), and organizational support (O) for value creation.
Capabilities
The extent to which a company uses resources to achieve its organizational objectives
Goodwill
The value of a firm’s abilities to develop and leverage its reputation
Dynamic capabilities
Advanced skills that allow an organization to continuously adapt to new technologies and changes in its external environment
Social complexity
The intricate social structures and relationships that characterize the organization of many firms.
Appropriability
The firm’s capacity to capture and benefit from the value it creates.
Causal ambiguity
The challenge of pinpointing the specific factors that lead to a firm’s successful performance.
Outsourcing
Delegating a specific activity to an external supplier who performs it on behalf of the firm.
Business Process Outsourcing (BPO)
The practice of outsourcing business services like IT, human resources, or logistics to external providers.
Nearshoring
Offshoring to a nearby country, typically within the same region, such as Europe.
Domestic outsourcing
Hiring an external firm within the same country to carry out a particular task
Reshoring
Bringing activities back to a company’s home country
Offshore outsourcing
Contracting an external firm located in another country to perform a specific activity
Offshoring
Relocating a business activity to a foreign country.
Captive offshoring
Establishing subsidiaries in a foreign country to perform in-house work at that location
Global Value Chains (GVCs)
Chains of geographically dispersed production activities governed by MNEs
Supply chain robustness
The capability to consistently supply a product regardless of external circumstances
Redundancy (in supply chains)
The availability of alternative suppliers to quickly source a product when needed
Organizational slack
A reserve of resources that enables an organization to effectively adapt to pressures and challenges
Supply chain resilience
The capacity of a supply chain to recover quickly after experiencing a disruption or disaster
Original Equipment Manufacturers (OEMs)
Companies that produce products based on design specifications provided by other firms.
Original Design Manufacturers (ODMs)
Companies that handle both the design and manufacturing of products
Original Brand Manufacturers (OBMs)
Companies that design, manufacture, and market their own branded products
