Unit 4

A business structure that involves one company handling all aspects of its operations.

A type of business structure where multiple companies come together to form a group, often with shared ownership or strategic alliances.

A systematic analysis of the internal functions of a company, encompassing crucial areas like production, marketing, finance, human resources, and organization.

A tool that helps businesses assess their strengths and weaknesses by analyzing their internal functions.

Key aspects or factors responsible for a company's ability to achieve its goals, often used for in-depth internal diagnosis.

A scale that assesses the performance of variables in a functional analysis, using a range from 1 to 5 to represent very negative (N) to very positive (VP).

A methodical approach to analyzing the internal performance of a company, focusing on identifying key variables and their impact.

The process of evaluating the performance of variables on a Likert scale, based on top management's perception of each variable.

Activities involving the storage and physical delivery of finished goods to customers.

Activities focused on selling products, including marketing and sales efforts.

Activities related to providing assistance and support to customers after a product sale.

Activities not directly involved in production, but essential for the firm's operation, providing indirect support.

The process of acquiring resources like raw materials, machinery, and services.

Activities involved in obtaining, improving, and managing technologies - both product and process related.

Activities managing the workforce, including recruitment, training, compensation, and performance evaluation.

Activities grouped under administration, including planning, organization, accounting, and finance. Provides overall support for the firm.

The unique combination of resources, skills, and processes that enable a company to perform activities better than its competitors.

Activities that are planned and repeated in a specific way within a company to accomplish a task or achieve a goal.

The ability of a company to adapt to changes in the market environment by modifying, combining, or creating new capabilities.

The ability of a company to coordinate and integrate different resources, skills, and knowledge into a unified effort.

A set of skills and knowledge that allows individuals to perform a specific technical or management task.

A set of skills and knowledge that support the company's values, culture, and attitudes.

The ability of a manager to design and improve organizational routines, creating valuable competences for the company.

A company's ability to leverage its knowledge and intangible resources effectively to gain a competitive advantage.

The ability of a resource or capability to be used in multiple ways without diminishing its value in any specific use.

The characteristic of a resource or capability that allows for unlimited applications, meaning it can be used repeatedly in different processes or products.

The ability of competitors to replicate the resources and capabilities of a benchmark firm, either internally or by acquiring similar assets.

The lack of knowledge among competing firms about the specific foundations of a firm's competitive advantage, making it difficult to replicate.

The process by which firms accumulate complex capabilities over time through experience and a unique series of events, making them difficult and costly to imitate.

The difficulty associated with transferring resources and capabilities between firms, often due to their intangible nature, specificity, and the complexity of the knowledge required.

A specific asset's value may decrease when transferred to another firm because it's tightly linked to the original firm's unique circumstances.

The costs associated with transferring resources and capabilities between firms, often high for complex sets of resources and capabilities.

A process of analyzing a company's strengths, weaknesses, opportunities, and threats to identify its competitive advantages and disadvantages in the market.

The ability of a company to use its resources, skills, and knowledge in a way that creates value for customers and generates profits.

The process of expanding a company's operations into new geographical markets by leveraging its existing resources and capabilities.

The extent to which rivals can easily find or create substitutes for a firm's valuable resources and capabilities.

When multiple resources and capabilities work together in a way that creates greater value than their individual parts.

The ability of a firm to capture the profits generated from its competitive advantage. This depends on how well the firm controls the resources that are the source of its advantage.

Control rights over tangible resources, such as financial assets and physical assets, are usually well-defined and easier to establish.

Establishing control rights over intangible assets, like patents, brands, and logos, can be more challenging.