Lec 2

Question 1

Language of theories - alignment

Answer 1

If alignment positively influences firm performance- if alignment is increased, firm performance will increase
If alignment is decreased firm performance will decrease

Alignment negatively influences firm performance where if alignment is increased firms responsiveness will decrease and if alignment is decreased firm responsiveness will increase

Question 2

For numbers

Answer 2

Strong relationship is .3 and above
Weak relationship is 0.1 and lower
No. Of * or ^ means the number can be assumed 0.

Question 3

Business competence

Answer 3

Business competence is the set of business and interpersonal knowledge/skills
That enable a cio apply their technical knowledge in ways that are beneficial to the organisation and to act coorperately with their business partners (increase alignment)

Business competence has 2 dimensions:
Organisation specific knowledge skills
Interpersonal and management knowledge skills

Question 4

It competence

Answer 4

It competence is the set of IT related knowledge and experience that a business manager possesses

It has 2 dimensions; it knowledge and it experience

Question 5

Resource based theory - 1

Answer 5

1Firms possess resources
Resource : assets and capabilities that are available and useful in detecting and responding to market opportunities or threats

Asset = firms use in their process to create produce or offer its products to a market eg employee, raw materials, computer

Capability = repeatable patterns of actions in the use of assets to create produce or offer products to a market , eg order fulfilment, checkout and

Question 6

Resource based theory 2

Answer 6

Firms achieve competitive advantages because of some resources.

Eg lower price
More desirable fashion

Company benefits from return on inv above competitors

Question 7

Resource based theory 3

Answer 7

A resource creates SCA if it is VRAINN

Sustainable competitive advantage (long term)
VRAINN= valuable, rare, appropriate, inimitable, non substituteable, non mobile

Valuable = improve efficiently and effective as 
Rare = unique, atms have big value to banks but cos not rate its not strategic benefit
Appropriable= not beneficial if not able to appropriate the returns accruing the ad

Inimitable = not replicable eg newly developed computer features are short lived as easy to duplicate

Non substitutability= resource cannot be replaced
Non mobile = resource cannot be transferred or traded by competitors eg company brad are difficult to acquire

Question 8

Resource attribute

Answer 8

Resources create short term competitive advantages if:
Valuable
Rare
Appropriable

Short term can become sustainable competitive advantage:
Inmitable
Non substituable
Non mobile