Key definitions Flashcards
Define Acquisition
Taking over of one company by another
Define Activity System
Idea of the firm as interrelated activities
Define Ambidextrous Organisation
Organisation can exploit competencies whilst exploring future opportunities
Define Business Ecosystem
organisations who react with the firm
Define Causal Ambiguity
Difficulty of diagnosing competitive advantages in superior firms
Define Comparative Advantage
Country’s ability to produce at a lower cost in certain countries
Define Competitive Advantage
Condition that allows a firm to earn a higher rate of profit than its competitors
Define Contingency Theory
No single best way to manage and design an organisation
Define Corporate Governance
System by which companies are directed and controlled
Define Corporate Strategy
WHERE to compete
Define Dynamic Capabilities
Capabilities that allow reconfiguration of resources to adapt to change
Define Economies of Scale
Reductions in cost per unit of output
Define Econimies of Scope
Resource across multiple products/markets uses less of that resource
Define First Mover Advantage
First organisation that occupies a new market, or exploits new technology
Define Game Theory
Considers business as a game, where your actions will depend on other players of the game
Define Hypercompetition
Competitive advantages quickly eroded and replaced by new sources of competitive advantage
Define Intellectual Property
Protection of knowledge/way of doing things
Define Isolating Mechanisms
Barriers that protect competitive advantage so that competitors can’t imitate
Define Knowledge Based View
Firm is a pool of knowledge, each member has knowledgeable assets for production
Define Network Effects
Links between users of a product or technology that allows benefits for multiple firms
Define Organisational Ecology
Population of industries
Define Parenting Advantage
Parent companies ability to create value for a company more than any other could
Define Resource Based View of the Firm
Collection of resources and capabilities is the foundation for competitive advantage and strategy for orgs
Define Stakeholder value maximisation
Firm should maximise value created by all stakeholders
