BUS 401, Test 2, VanderKelen, Cal Poly || A+ Score Secured.
A visual description of the steps requires to turn raw materials into products or services? correct
answers Value Chain
What are the primary activities in the VC? correct answers Inbound Logistics
Operations
Outbound Logistics
Sales and Marketing
Service/Maintenance
What are the support activities in the VC? correct answers Infrastructure
Human Resource Management
Procurement
Technological Development
Why is the VC used by firms? correct answers In order to help a firm find out what they're good
at, and what value their capabilities allow them to provide.
If a firm is good at providing more value into their inputs--> outputs (products/services), then the
_____ will surpass the ____, enlarging their _______. correct answers Value , Costs , Margin
Two process used to answer "What is a firm better at than relevant competitors?" correct answers
Resource-Based Method
VRIO
What is the Resource-Based Method? correct answers Comprised of Resources, Capabilities, and
Priorities.
Resources--> What assets a company can use to provide value to customers.
Capabilities--> What methods or actions can a firm take to make their resources valuable.
, Priorities--> What the firm believes to be their most important value provider.
What are 4 types of Resources? correct answers Financial: Having a lot of free cash flow to work
with
Physical: Having plants or warehouses to utilize
Intangible: Having patents or a strong Brand Image
Human: Having a well versed work force
What are 2 types of Capabilities? Describe them. correct answers Operating Capabilities:
Procedures, processes, or routines for delivering value to customers, employees, suppliers or
investors. Ex, McDonald's being fast at food turnover.
Dynamic Capabilities: Procedures, processes, and routines that continuously expand existing
resources or improve operating capabilities. Ex, A company having gone through filing for a
patent many times is likely to be good at it because of their practice, thus, their operating forces
that take care of such things are becoming more efficient.
Competitive advantages arise when resources or capabilities possess two attributes? Describe
them. correct answers (VRIO)
Value: Worth for customers. Products or services create value when they create direct pleasure,
satisfaction,, or happiness for the end user.
Rarity: Providing something uncommon to users, something unique. When products or services
are scarce, people are willing to pay more for them.
Two Principles that determine the durability, or sustainability, of competitive advantage?
Describe them. correct answers (VRIO)
Inimitability: The extent to which competitors cannot easily reproduce/duplicate another firms
value while using the same inputs, without spending much more unnecessarily.
A visual description of the steps requires to turn raw materials into products or services? correct
answers Value Chain
What are the primary activities in the VC? correct answers Inbound Logistics
Operations
Outbound Logistics
Sales and Marketing
Service/Maintenance
What are the support activities in the VC? correct answers Infrastructure
Human Resource Management
Procurement
Technological Development
Why is the VC used by firms? correct answers In order to help a firm find out what they're good
at, and what value their capabilities allow them to provide.
If a firm is good at providing more value into their inputs--> outputs (products/services), then the
_____ will surpass the ____, enlarging their _______. correct answers Value , Costs , Margin
Two process used to answer "What is a firm better at than relevant competitors?" correct answers
Resource-Based Method
VRIO
What is the Resource-Based Method? correct answers Comprised of Resources, Capabilities, and
Priorities.
Resources--> What assets a company can use to provide value to customers.
Capabilities--> What methods or actions can a firm take to make their resources valuable.
, Priorities--> What the firm believes to be their most important value provider.
What are 4 types of Resources? correct answers Financial: Having a lot of free cash flow to work
with
Physical: Having plants or warehouses to utilize
Intangible: Having patents or a strong Brand Image
Human: Having a well versed work force
What are 2 types of Capabilities? Describe them. correct answers Operating Capabilities:
Procedures, processes, or routines for delivering value to customers, employees, suppliers or
investors. Ex, McDonald's being fast at food turnover.
Dynamic Capabilities: Procedures, processes, and routines that continuously expand existing
resources or improve operating capabilities. Ex, A company having gone through filing for a
patent many times is likely to be good at it because of their practice, thus, their operating forces
that take care of such things are becoming more efficient.
Competitive advantages arise when resources or capabilities possess two attributes? Describe
them. correct answers (VRIO)
Value: Worth for customers. Products or services create value when they create direct pleasure,
satisfaction,, or happiness for the end user.
Rarity: Providing something uncommon to users, something unique. When products or services
are scarce, people are willing to pay more for them.
Two Principles that determine the durability, or sustainability, of competitive advantage?
Describe them. correct answers (VRIO)
Inimitability: The extent to which competitors cannot easily reproduce/duplicate another firms
value while using the same inputs, without spending much more unnecessarily.
