Strategic Capabilities Flashcards
What are strategic capabilities, resources, and competences in strategic management?
Strategic capabilities: Organization’s strengths for long-term advantage.
Resources: Owned or accessible assets (e.g., through partnerships).
Competences: Effective deployment of resources.
Category Types of Resources/Competences: Physical, Financial, Human
What are the key criteria of the VRIO framework? (4 statements)
Value: Capabilities must create customer value at a profitable cost.
Rarity: They should be rare among competitors.
Inimitability: Difficult for competitors to imitate or substitute.
Organizational Support: Supported by effective processes and systems.
What is benchmarking in strategic management?
Definition: Comparing an organization’s performance with others.
Types:
- Industry/Sector Benchmarking: Compares against competitors in the same industry using performance
indicators.
- Best-in-Class Benchmarking: Compares against top performers, even across different industries.
What is value chain analysis in strategic management?
Definition: Describes categories of activities within an organization that collectively create a product or service.
Components:
- Primary Activities: Directly involved in product/service creation or delivery.
- Support Activities: Enhance effectiveness or efficiency of primary activities.
Purpose: Analyzes competitive advantage within these activities.
What is mapping activity systems in strategic management?
Definition: Identifying strategic themes and activity clusters that support market success factors.
Purpose:
- Shows interrelations and fit of activities.
- Highlights how internal and external activities create customer value.
Strategic Importance:
- Enhances understanding of capabilities and their linkages.
- Supports sustainable competitive advantage.
- Relates to VRIO framework in assessing advantage.
What are dynamic capabilities in strategic management?
Definition: Abilities to renew and adapt strategic capabilities in changing environments.
Components:
- Sensing: Constant exploration of new opportunities (e.g., R&D, market research).
- Seizing: Acting on opportunities with new products and processes.
- Re-configuring: Adapting capabilities and investing in new technologies.
Sources: Processes, positions, and paths for strategic alternatives.
What are core competences in strategic management?
Definition: Integrated skills, activities, and resources delivering customer value and differentiating from competitors.
Characteristics:
- Tree-Model: Visual representation for understanding and developing strengths over time.
- Extension: Capabilities potentially extendable and adaptable with market changes.
What is organizational knowledge and its types?
Definition: Organization-specific collective intelligence from formal systems and shared experience.
Types:
- Explicit Knowledge: Formal and systematic (e.g., manuals, research).
- Tacit Knowledge: Personal, context-specific, hard to formalize or imitate (e.g., R&D team expertise and
relationships).
Competitive Advantage:
- Basis: Unique organizational knowledge contributes to competitive advantage.
What is the SECI model and its key terms?
Definition: Describes knowledge processes involving explicit and tacit knowledge interaction.
Terms:
- Socialization: Sharing tacit knowledge through interactions and experiences.
- Externalization: Converting tacit knowledge into explicit knowledge.
- Combination: Integrating different forms of explicit knowledge.
- Internalization: Applying explicit knowledge into tacit knowledge through learning and practice.
