BUSI 4940 EXAM 1 QUESTIONS AND ANSWERS
Globalization - Answers - increase economic interdependence among countries + their
orgs as reflected in flow of products, FINA. capital and knowledge
Technology Diffusion - Answers - speed at which new tech becomes available to firms
and when firms / costumers adopt them
Perpetual Innovation - Answers - describes how rapidly + consistently new information -
UNIQUE TO information-internsive techs) replace older ones
(moore's law, info storge, connection tech)
Disruptive Technologies AKA Disruptive Innovation - Answers - new technology that
destroys the value of an existing tech + creates new markets
what are the two main drivers of hypercompeition - Answers - globalization and
technology
the need for flexibility, speed, innovation + integration in the use of technology
increases? - Answers - hypercompetition
at the highest level of hypercometition what happens - Answers - market volatility and
instability due to rapid pace of change in markets
glocalization? - Answers - is the slowing down of globalization bc of nationalism
who are the highest-ranking executive & board members at a public company? -
Answers - ceo
owners of stock are? (ceo responds to them) - Answers - common shareholders
who is in charge of the board? do they have the power to fire the ceo? - Answers - chair
of the board of directors
and yes! they can fire the CEO and TMT
industrial organization (I/O) assumptions (there are 4) - Answers - * the external
environment (whats outside the company) imposes pressures and constraints that
determine strat choices
* strategically relevant resources are similar causing competitors to pursue similar strats
* resource are highly mobile so differences are short-lived and dont last long
* strat decision makers are more rational + engage in profit-maximizing behaviors
, is it common for one person to serve all three roles of chairman, ceo and president? -
Answers - yes!
resource - based model assumptions (there are 4) - Answers - focuses on the inside of
the company
* firms aquire diff resources
* firms develop unique capabilities based on how they combine + use resources
* resources + certain capabilities are not highly mobile across firms
* diff in resources + capabilities are bases of competition adv
who is associated with the resource theory? - Answers - jay barney
who is associated with I/O theory? - Answers - michael porter
resource base model - what is the order? - Answers - resources > capabilities > core
competencies
military strategy is defined as? - Answers - "zero-sum" game or "one-event" game
what are resources?
examples? - Answers - resources are tangible and intangible
tangle=equipment, things you can touch
intangible = patents, knowledge, copyrights, etc
what are capabilities? - Answers - an integrated set of resources
core competencies are? - Answers - a "potential" source of comp adv
what are the 4 components of the VRIS?
how do you use it? - Answers - valuable
rare
imitability
substitutable
you ask certain questions and if the answer is yes than proceed until you get to a short-
term competitive adv. at subsitutable
what does the barney model (VRIS) add? - Answers - adds economic value and what is
necessary for a comp adv to be sustained over a longer period of time
VALUE IS NOT ACCT. BUT ECONOMIC VALUE
Globalization - Answers - increase economic interdependence among countries + their
orgs as reflected in flow of products, FINA. capital and knowledge
Technology Diffusion - Answers - speed at which new tech becomes available to firms
and when firms / costumers adopt them
Perpetual Innovation - Answers - describes how rapidly + consistently new information -
UNIQUE TO information-internsive techs) replace older ones
(moore's law, info storge, connection tech)
Disruptive Technologies AKA Disruptive Innovation - Answers - new technology that
destroys the value of an existing tech + creates new markets
what are the two main drivers of hypercompeition - Answers - globalization and
technology
the need for flexibility, speed, innovation + integration in the use of technology
increases? - Answers - hypercompetition
at the highest level of hypercometition what happens - Answers - market volatility and
instability due to rapid pace of change in markets
glocalization? - Answers - is the slowing down of globalization bc of nationalism
who are the highest-ranking executive & board members at a public company? -
Answers - ceo
owners of stock are? (ceo responds to them) - Answers - common shareholders
who is in charge of the board? do they have the power to fire the ceo? - Answers - chair
of the board of directors
and yes! they can fire the CEO and TMT
industrial organization (I/O) assumptions (there are 4) - Answers - * the external
environment (whats outside the company) imposes pressures and constraints that
determine strat choices
* strategically relevant resources are similar causing competitors to pursue similar strats
* resource are highly mobile so differences are short-lived and dont last long
* strat decision makers are more rational + engage in profit-maximizing behaviors
, is it common for one person to serve all three roles of chairman, ceo and president? -
Answers - yes!
resource - based model assumptions (there are 4) - Answers - focuses on the inside of
the company
* firms aquire diff resources
* firms develop unique capabilities based on how they combine + use resources
* resources + certain capabilities are not highly mobile across firms
* diff in resources + capabilities are bases of competition adv
who is associated with the resource theory? - Answers - jay barney
who is associated with I/O theory? - Answers - michael porter
resource base model - what is the order? - Answers - resources > capabilities > core
competencies
military strategy is defined as? - Answers - "zero-sum" game or "one-event" game
what are resources?
examples? - Answers - resources are tangible and intangible
tangle=equipment, things you can touch
intangible = patents, knowledge, copyrights, etc
what are capabilities? - Answers - an integrated set of resources
core competencies are? - Answers - a "potential" source of comp adv
what are the 4 components of the VRIS?
how do you use it? - Answers - valuable
rare
imitability
substitutable
you ask certain questions and if the answer is yes than proceed until you get to a short-
term competitive adv. at subsitutable
what does the barney model (VRIS) add? - Answers - adds economic value and what is
necessary for a comp adv to be sustained over a longer period of time
VALUE IS NOT ACCT. BUT ECONOMIC VALUE
