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
