WPC 480 Chapter 4 Exam With Complete Solutions

WPC 480 Chapter 4 Exam With Complete Solutions Core competencies Unique strength, embedded deep within a firm, that are critical to gaining and sustaining competitive advantage. Resources Any assets that a firm can draw on when formulating and implementing a strategy. Capabilities Organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically. Activities Distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services. Resource based view A model that sees certain types of resources as key to superior firm performances. Tangible resources Resources that have physical attributes and thus are visible. Intangible resources Resources that do not have physical attributes and thus are invisible. Resource heterogeneity Assumption in the resource-based view that a firm is a bundle of resources and capabilities that differ across firms. Resource immobility Assumption in the resource-based view that a firm has resource that tent to be "sticky" and that do not move easily from firm to firm. Two critical assumptions 1. Resource heterogeneity 2. Resource immobility VRIO Framework A theoretical framework that explains and predicts firm-level competitive advantage. VRIO 1. Valuable 2. Rare 3. Icostly to Imitate 4. Organized to capture the value of the resource Valuable One of the four key criteria in the VRIO framework. A resource is ______ if it helps a firm exploit an external opportunity or offset an external threat. Rare One of the four key criteria in the VRIO framework. A resource is ______ if the number of firms that possess it is less than the number of firms it would require to reach a state of perfect competition. Costly to imitate One of the four key criteria in the VRIO framework. A resource is ______ ______ ______ if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost. Organized to capture value One of the four key criteria in the VRIO framework. The characteristic of having in place an effective organized structure, processes, and systems