Are the competencies or skills that a firm employs to transform inputs into outputs.

Level 33 Level 35

Level 34

Assessing the Internal Environment of the Firm

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What are Tangible Resources?

assets that are relatively easy to identify; they include the physical & financial assets that an organization uses to create value for its customers

What are Intangible Resources?

assets that are much more difficult for competitors to account for or imitate and are typically embedded in unique routines & practices that have evolved & accumulated over time

What are Organizational Capabilities and what are some examples?

the competencies or skills that a firm employs to transform inputs into outputs (ie. outstanding customer service, excellent product development capabilities, and innovativeness of products/services)

What is the Balanced Scorecard?

set of measures that provide top managers with a fast, but comprehensive view of the business

A strategic analysis of an organization that uses value-creating activities

Determined by the personal ans situational factors.

by total revenue which is a reflection of the price of a firm's product commands & the quantity it can sell

What is the difference b/w manufacturing & service?

lies in providing a customized solution rather than the kind of mass production that is common in manufacturing

Organizational assets that are relatively easy to identify; they include the physical & financial assets that an organization uses to create value for its customers

assets that are much more difficult for competitors to account for or imitate and are typically embedded in unique routines & practices that have evolved & accumulated over time

Organizational Capabilities

the competencies or skills that a firm employs to transform inputs into outputs.

What is Employee Bargaining Power?

If employees are vital to forming a firm's unique capability, they will earn disproportionately high wages

What are Employee Replacement Costs?

If employees' skills are idiosyncratic and rare (a source of resource-based advantages), they should have high bargaining power based on the high cost required by the firm to replace them

What are Employee Exit Costs?

tends to reduce an employee's bargaining power; an individual may face high personal costs when leaving the organization thus that individual's threat of leaving may not be credible

What is Manager Bargaining Power?

this would be based on how well they create resource-based advantages. They are generally charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital …

Key Concept used in Analyzing a firm's competitive position

Creating value for buyers that exceed the cost of production

sequential activities of the value chain that refer to the PHYSICAL creation of a product or service, its sale and transfer to the buyer, and its service after sale

Activities of the value chain that either add value through important relationships with both primary activities and other support activities

Baggage handling, because it is a physical service

In assessing its primary activities, an airline would examine

Primary Activity: Inbound Logistics

receiving, storing, and distributing inputs of a product

Primary Activity: Operations

All activities associated with transforming inputs into final product form.

Primary Activity: Outbound Logistics

Collecting, storing, and distributing the product or service to buyers

Primary Activity: Marketing and Sales

Activities associated with purchases of products and services by end users and the inducements used to get them to make purchases

Primary Activity: Service

Actions associated with providing service to enhance or maintain the value of the product

Support Activity: Procurement

Function of purchasing inputs used in the firm's value chain

Support Activity: Human Resource Management

Activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel

Support Activity: Technology Development

Related to a wide range of activities and those embodied in processes and equipment and the product itself

Support Activity: General Administration

Typically supports the entire value chain and not individual activities

Collaborative and strategic exchange relationships between value-chain activities either

Resource-based view of the firm

Perspective that firms' competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.

Social of Inimitably: Path Dependency

This simply means that resources are unique and

Social of Inimitably: Casual Ambiguity

This means that would-be competitors may be thwarted because it is impossible to disentangle the causes (or possible explanations) of either what the valuable resource is or how it can be re-created.

Social of Inimitably: Social Complexity

a characteristic of a firm's resources that is costly to imitate because the social engineering required is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, and reputation with suppliers and customers.

a technique for measuring the performance of a firm according to its -balance sheet

set of measures that provide top managers with a fast, but comprehensive view of the business

Measures of firms performance that indicate how well firms' internal processes, decisions and actions are contributing to customer satisfaction.

Internal Business Perspective

Measures of firm performance that indicate how well firms' internal processes, decisions and actions are contributing to customer satisfaction.

Innovation and learning Perspective

Measures of firm performance that indicate how well firms are changing their product and service offerings to adapt to changes in the internal and external environments.

Measures of firms' financial performance that indicate how well strategy, implementation and execution are contributing bottom-line improvement.

SWOT analysis: Weaknesses

- limitation or deficiency in company's resources or capabilities that create a disadvantage

SWOT analysis: Opportunities

- major favorable situations in a company's environment (ex: improving economic conditions, developing market, new international market, online sales, new technology)

- major unfavorable situation in a company's environment (ex: price wars, new competition)

SWOT analysis can help because...

- it helps managers create a quick overview of the company's strategic situation

Value-Chain analysis: Primary activites

Value-Chain analysis: Primary activities: Inbound logistics

- associated with receiving, storing and distributing inputs to the product

Value-Chain analysis: Primary activities: Outbound logistics

- associated with collecting, storing, and distributing the product or service to buyers

Value-Chain analysis: Secondary activities: Human resource management

- activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel

By analyzing value-chain activities...

- managers understand the kinds of coordination needed to enhance workflow efficiency, quality, and speed

Types of resources: Intangible resources

- difficult for competitors (and the firm itslef) to imitate, typically embedded in unique routines and practices that have evolved overtime

Types of resources: Organizational capabilities

- competencis or skills that a firm employes to transform inputs to outputs, and capacity to combine tangible and intangible resources to attain desired end

- substitutability may take atleast two forms:

Firm resources and sustainable competitive advantage: Are substitutes readily available?