study guide 3

Question 1

There are many reasons why firms in the same industry perform differently. One of these is core competencies

Answer 1

which are unique strengths that allow for differentitation and drive competitive advantage.

Question 1

Firm 3 things ig

Answer 1

1) resources and capabilities

2) goals, values, organizational structure and systems

3) firm activities

these three things affect firm strategy and performance which is also affected by competitive forces and general environmental effects

The understanding of large firms from a resources- and managerial-based perspective emphasizes the internal factors that contribute to performance differences among firms within the same industry. This approach highlights the importance of core assets and competencies, managerial intentionality, and the strategic fit between a firms resources and the external market environment

Question 2

A firms goal is

Answer 2

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

Question 3

Resource

Answer 3

an asset that a company can draw to draft and execute a strategy

Question 4

Capability

Answer 4

an intangible organizational and managerial skill necessary to coordinate and orchestrate a diverse set of resources and deploy them strategically.

Question 5

Resources can be classified into the following

Answer 5

tangible resources

Financial resources (e.g. cash)

Physical resources (e.g. plant, equipment, land)

intangible resources

Technology (such as patents, copyrights and trade secrets)

Reputation, brands and relationships

Culture

Human resources

Skills/know how

Capacity for communication

motivation

Question 6

Functional capabilities

Answer 6

are those in functional areas such as operations, marketing, and financial management. These capabilities are found across a firms value chain activities.

Question 7

Organizational capabilities

Answer 7

are those relating to coordingation and orchestration among functional areas

Question 8

Dynamic capabilities

Answer 8

allow for modification and adaption of lower-level operational and functional capabilities.

Question 9

Organizational decisions

Answer 9

Relate the decision-making under uncertainty about future returns and the scope of the operations of a firm. These tackle the uncertainty that underly in investments in resoucres

Question 10

These types of decisions are made based on an organizational hierarchy. This is shown below:

Answer 10

1) Board of directors
2) top level managers
3) Divisional managers
4) other manager/team leaders
5) team members

Question 11

An effective representation of decisions is the use of

Answer 11

Decision trees. These feature whether a feature, act or operation is agreed upon or not. These then show further possible decisions and reprecussions

Question 12

Replicaiton risk

Answer 12

occurs during transfer or redeployment of knowledge

Question 13

imitation risk

Answer 13

occurs when competitors replicate your innovation