Module 3

Question 1

Combination of general environmental effects and competitive forces results in…
Resources, capabilities, goals, and activities also play a role into it

Answer 1

Creating the firm strategy and its performance

Question 2

What are some internal firm-level factors, which create differentiation among firms in the same industry

Answer 2

Core competencies

Strategic fit - internal strengths change with external environment

Question 3

What is a firm’s goal?

Answer 3

To develop resources and capabilities, which build core competencies that create strategic fit with the market environment

Question 4

What is a strategic fit?

Answer 4

The company is well available to tap into opportunities emerging from changes in the external environment

Question 5

What are resources?

Answer 5

Assets such as cash, assets, buildings, etc

Question 6

Capabilities

Answer 6

Organizational and managerial skills needed to deploy resources strategically

Question 7

What type or resources there are?

Answer 7

Tangible
Intangible
Human

Question 8

What are functional capabilities?

Answer 8

Operations, purchasing, logistics, R&D, distribution, customer service

Question 9

What are organizational capabilities?

Answer 9

Coordination and orchestration among functional areas

Question 10

What are dynamic capabilities?

Answer 10

They allow modification and adaptation of lower-level operational and functional capabilities

Question 11

Resources and capabilities, as stocks and flows

Answer 11

stocks - resources and capabilities

flows - changes in the stocks

Question 12

Corporate renewal

Answer 12

Advantage is gained from reconfiguring a firm’s resources and capability base.

For example, Honda going to have to invest in electric batteries because of shifting customer preferences

Question 13

What are sources of leakage and forgetting in stock outflows?

Answer 13

Forgetting over time

People leaving companies

Question 14

What is a very important aspect in allocating resources

Answer 14

Focusing on flexibility

Question 15

What is needed in order to integrate the proper individual into the organizational processes

Answer 15

It is important to look at the experience and knowledge of the person.

Question 16

How to inspire individuals to contribute to the company?

Answer 16

Tap into their existing skills and focus on building new ones

Place incentives systems that encourage experimentation

Encourage cross-functional team activities

Create a culture of innovation

Question 17

Who are the key organizational drivers in a firm’s innovation strategy?

Answer 17

Internal champions and gatekeepers

Customers and Suppliers

Question 18

Methods for evaluating projects?

Answer 18

Discounted cash flow methods
Net present value
Internal rate of return

Question 19

What is the real options approach?

Answer 19

their proposed project is similar to an option; there is an opportunity, which is not an obligation, to approve it and go ahead.

Question 20

Which are the three conflicting goals in the product development process?

Answer 20

Maximizing the customers’ value of the product

Minimizing the development cycle

Controlling development costs