Mgt 5700 Chapter 3

Front 1

an economic theory that suggests that a firm performance is a function of the types of resources and capabilities controlled by firms.

Back 1

Resource-based view (RBV)

Front 2

the tangible and intangible assets that enable a firm to take full advantage of the other resources it controls.

Back 2

Resources

Front 3

a subset of resources that enable a firm to take advantage of its other resources.

Back 3

Capabilities

Front 4

include all the money, from whatever source that firms use to conceive and implement strategies.

Back 4

Financial resources

Front 5

the profit that a firm made earlier in its history and invests in itself, are also an important type of financial resource.

Back 5

Retained earnings

Front 6

include all the physical technology used in a firm.

Back 6

physical resources

Front 7

include the training, experience, judgement, intelligence, relationships, and insight of individual managers and workers in a firm.

Back 7

Human resources

Front 8

include a firm's formal reporting structure; its formal and informal planning, controlling and coordinating systems; its culture and reputation; and informal relations among groups within a firm and between a firm and those in its environment.

Back 8

organizational resources

Front 9

implies that for a given business activity, some firms may be more skilled in accomplishing this activity than other firms.

Back 9

Resource heterogeneity

Front 10

resource and capability differences among firms may be long lasting, because it may be very costly for firms with out certain resources and capabilities to develop them.

Back 10

Resource immobility

Front 11

the quantity of supply is fixed and does not respond to price increases.

Back 11

inelastic in supply

Front 12

this tool is asked four questions about a firm's resources and capabilities in order to evaluate their competitive potential.

Back 12

VRIO framework

Front 13

"Do resources and capabilities enable a firm to exploit an external opportunity or neutralize an external threat?"

Back 13

The question of value

Front 14

"Is a resource currently controlled by only a small number of competing firms?"

Back 14

The question of rarity

Front 15

"Do firms without a resource face a cost disadvantage in obtaining or developing it?'

Back 15

The question of imitability

Front 16

"Are a firm's other policies and procedures organized to support the exploration of its valuable, rare, and cost-to-imitate resources?'

Back 16

The question of organization

Front 17

a document that summarizes how an entrepreneur will organize a firm to exploit an opportunity, along with the economic implications of exploiting that opportunity.

Back 17

business plan

Front 18

a set of business activities in which it engages to develop, produce, and market its products or services.

Back 18

value chain

Front 19

Valuable, rare, and costly-to-imitate resources and capabilities can be a source of

Back 19

sustained competitive advantage

Front 20

when events early in the evolution of a process have significant effects on a subsequent events.

Back 20

path dependence

Front 21

When a firm gains low-cost access to resources because of its place in time and space, other firms may find these resources to be cost to imitate. Both first-mover and advantages and path dependence can create...

Back 21

Unique Historical Conditions

Front 22

When companies cannot tell, for sure, what enables a firm to gain and advantage that may be costly to imitate.

Back 22

Casual Ambiguity

Front 23

When the resources and capabilities of a firm uses to gain a competitive advantage involve interpersonal relationships, trust, culture, and other social resources that are costly to imitate in the short term.

Back 23

Social Complexity

Front 24

Only a source of sustained competitive advantages in a few industries, including pharmaceuticals and specialty chemicals.

Back 24

Patents

Front 25

a description of whom in the organization reports to whom

Back 25

formal reporting structure

Front 26

include a range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies.

Back 26

Management control systems

Front 27

include a range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies.

Back 27

Management control systems

Front 28

include a firm's budgeting and reporting activities that keep people higher up un a firm's organizational chart.

Back 28

Formal Management controls

Front 29

include a firm's culture and the willingness of employees to monitor each other's behavior.

Back 29

Informal management controls

Front 30

a set of activities or capabilities that a company is able to perform better than its competitors and which gives it an advantage over them.

Back 30

distinctive competence

Front 31

There is a strong market share leader in the industry. Any actions firm takes that have the effect of reducing the level of rivalry in an industry and that also do not require firms in an industry to directly communicate or negotiate with each other

Back 31

tactic cooperation

Front 32

the specific actions a firm takes to implement its strategies.

Back 32

Tactics