L2- External A. & Resource Integration

Question 1

two attributes of tangible resources

Answer 1

visible
quantified

Question 2

define capability

Answer 2

Capabilities are a company’s ability to perform a specific set of tasks using its resources.

Question 3

how is value measured?

Answer 3

products performance characteristics and attributes for which customers are willing to pay

Question 4

define core competencies

Answer 4

core competencies are resources and capabilities that serve as a source of competitive advantage

Question 5

define competitive advantage

Answer 5

competitive advantage is when a firm implements a strategy that competitors are unable/ find too costly to duplicate.

Question 6

does the resource based view of the firm assume resources are mobile or immobile?

Answer 6

IMPERFECTLY MOBILE

Question 7

define valuable within VRIN

Answer 7

does it allow the firm to exploit its opportunities or neutralize threats form the external environment

Question 8

define inimitable within VRIN

Answer 8

is the resource costly/ hard to imitate due to historical conditions, social complexity, and causal ambiguity (about features e.g coffee capsules)

Question 9

nonsubstitutable within VRIN

Answer 9

there are no strategic equivalent resources or capabilities.

Question 10

similarities btw vrin and value chain anlaysis

Answer 10

1. internal analysis
2. explores sources of competitive advantage

Question 11

how does value chain analysis explore sources of comp. adv?

Answer 11

by examining how each activity in the value chain contributes to the firm’s cost structure or differentiation.

Question 12

define value chain analysis

Answer 12

a tool for internal analysis that dissects a company’s operations into primary and support activities.

Question 13

the goal of value chain analysis

Answer 13

identify strengths, weaknesses, and opportunities for improvement within the firm’s value creation process.

Question 14

types of primary activities (5)

Answer 14

1. inbound logistics
2. outbound logistics
3. operation
4. marketing and sales
5. service

Question 15

types of support activities (4)

Answer 15

1. firm infrastructure
2. HR management
3. tech dev.
4. procurement

Question 16

define procurement

Answer 16

sourcing and acquiring the resources needed for primary activities.

Question 17

what does firm infrastructure (under support) include?

Answer 17

management, planning, finance, and other support functions.

Question 18

inbound logistics (primary)

Answer 18

receiving, storing, and distributing inputs for production.

Question 19

define operation (under primary)

Answer 19

production and assembly of product

Question 20

outbound logistics (primary)

Answer 20

getting the finished product to customers

Question 21

A resource/ capability is a source of competitive advantage when it allows the firm to:
(2)

Answer 21

1. Perform an activity in a way that provides value superior to that provided by competitors
2. Perform a value-creating activity that competitors can’t/ find too costly to perform.

Question 22

according to the value chain analysis, if a firm cannot achieve competitive adv. they should

Answer 22

outsource, and integrate different parts of the value chain.

Question 23

how is VRIN used in SWOT

Answer 23

Using VRIN to analyze weaknesses and strengths.

Question 24

how is PESTEL & Porter’s 5 used in SWOT

Answer 24

Using PESTLE or Porter’s 5 forces to analyze opportunities, and threats.

Question 25

Threats + strengths ->

Answer 25

threat y being buffered by strength c

Question 26

define stable integration

Answer 26

companies acquire external resources, like research firms or technologies, to enhance their products while maintaining their existing internal structure and processes

Question 27

where is stable integration seen and why?

Answer 27

biotechnology and pharmaceuticals

Companies in these sectors acquire external resources, such as research firms or technologies, to improve their offerings while keeping these resources unchanged. This means they can ensure stability in their operations.

Question 28

what’s the approach of stable integration?

Answer 28

select and integrate external resources without disrupting or altering the core internal processes and structures of the company.

Question 29

define modular integration

Answer 29

the strategic selection of external resources that complement a company’s strengths, OR including the substitution of specific elements in the value chain.

Question 30

where is modular integration seen and why?

Answer 30

Apple outsources manufacturing while concentrating on design and marketing

In such companies, different components are assembled externally to leverage specialized capabilities.

Question 31

approach of modular integration

Answer 31

purposefully selecting external resources to enhance specific aspects of the value chain while maintaining control over other critical elements. !!!!

Question 32

define dynamic integration

Answer 32

an ongoing process emphasizing continuous knowledge exchange between a company’s internal teams and external partners.

Question 33

where is dynamic integration seen and why?

Answer 33

technology sectors

For example, when internal software developers actively engage in open-source software projects, this dynamic approach keeps their software current and allows them to benefit from the latest industry developments.

Question 34

approach of dynamic integration

Answer 34

actively engaging in continuous knowledge sharing and adapting internal processes based on the evolving information and insights

Question 35

summarize all 3 major approaches to integration

Answer 35

stable integration maintains stability by integrating external resources without significant changes

modular integration strategically selects and substitutes elements in the value chain for efficiency

dynamic integration involves ongoing knowledge exchange for continuous adaptation.

Question 36

3 main characteristics of closed innovation paradigm

Answer 36

1. Conducts research and development internally within the organization.
2. Emphasis is on serving the existing market, with limited exploration beyond current market demands.
3. Limited engagement with external partners or competitors.

Question 37

3 main characteristics of open innovation paradigm

Answer 37

1. Actively collaborates with external partners, leveraging their expertise.
2. Seeks innovation opportunities beyond current market demands.
3. Utilizes licensing agreements, technology spinoffs, and technology insourcing to integrate external knowledge and technologies into internal processes

Question 38

define liscensing

Answer 38

seeking external technologies through formal agreements, enabling the organization to incorporate them into its operations.

Question 39

define tech. spinoffs

Answer 39

encourage the creation of new innovative concepts outside the organization, fostering the development of novel ideas and technologies beyond internal boundaries.

Question 40

define tech. insourcing

Answer 40

the incorporation of external expertise as a crucial aspect of the innovation strategy, bringing external knowledge and skills into the organization’s internal processes.

Question 41

why can a competency be costly to imitate?

Answer 41

• historical (unique org. culture or brand name)
• ambiguous cause (the causes, and uses of competence is unclear)
• social complexity (interpersonal r.ships, trust among managers, suppliers, and customers)

Question 42

difference between procurement and inbound logistics

Answer 42

procurement is about acquiring goods

inbound logistics is about managing the physical flow of these goods into a company.

Question 43

Conditions affecting managerial decisions about resources, capabilities, and core competencies:

Answer 43

1. Uncertainty
2. Complexity
3. Intra-organizational Conflicts

Question 44

main argument of barney (1991)

Answer 44

in industries characterized by perfect homogeneity and high resource mobility, firms cannot expect to achieve sustained competitive advantages.

Question 45

First-mover advantages are conditional on (…)

Answer 45

resource heterogeneity