Podcast
Questions and Answers
Which of the following is an example of a tangible resource?
Which of the following is an example of a tangible resource?
- Brand recognition
- Manufacturing equipment (correct)
- Supplier relationships
- Employee expertise
What is the primary characteristic of intangible resources that differentiates them from tangible resources?
What is the primary characteristic of intangible resources that differentiates them from tangible resources?
- They can be easily quantified.
- They are rooted deeply in the firm's history and people. (correct)
- They are easily imitated by competitors.
- They are physical assets.
Which of the following best describes a 'capability' in the context of organizational resources?
Which of the following best describes a 'capability' in the context of organizational resources?
- The individual assets owned by a company.
- The financial reserves available to a company.
- The ability to combine resources to create value. (correct)
- The reputation a company has in the market.
If a company possesses a resource that is valuable but not rare, what is the likely competitive outcome?
If a company possesses a resource that is valuable but not rare, what is the likely competitive outcome?
What is the key difference between 'core competencies' and 'distinctive competencies'?
What is the key difference between 'core competencies' and 'distinctive competencies'?
According to the VRIS framework, which characteristic must a resource have to provide at least a temporary competitive advantage?
According to the VRIS framework, which characteristic must a resource have to provide at least a temporary competitive advantage?
Which of the following is the best example of substitutes in the context of business strategy?
Which of the following is the best example of substitutes in the context of business strategy?
In the context of the value chain, what does 'upstream' typically refer to?
In the context of the value chain, what does 'upstream' typically refer to?
What potential outcome can Incompetencies within an organization lead to?
What potential outcome can Incompetencies within an organization lead to?
Within the VRIS Framework, what does the 'I' stand for?
Within the VRIS Framework, what does the 'I' stand for?
A company excels at product development but struggles with efficient distribution. Which of the following describes this competency?
A company excels at product development but struggles with efficient distribution. Which of the following describes this competency?
Which of the following is an example of an innovative resource?
Which of the following is an example of an innovative resource?
What does 'downstream' generally involve in the context of a value chain?
What does 'downstream' generally involve in the context of a value chain?
Which of the following is the BEST description of organizational resources?
Which of the following is the BEST description of organizational resources?
What might be considered formal reporting structures and IT infrastructure?
What might be considered formal reporting structures and IT infrastructure?
Which of the following describes the importance of employee expertise, leadership capabilities and company culture?
Which of the following describes the importance of employee expertise, leadership capabilities and company culture?
What does VRIS stand for?
What does VRIS stand for?
Which scenario best demonstrates the application of capabilities?
Which scenario best demonstrates the application of capabilities?
Which of the following is the most accurate definition of a 'substitute' in the business context?
Which of the following is the most accurate definition of a 'substitute' in the business context?
What does the VRIS framework help organizations primarily determine?
What does the VRIS framework help organizations primarily determine?
Flashcards
Tangible Resources
Tangible Resources
Assets that can be observed or quantified, such as financial, physical, technological, and organizational resources.
Intangible Resources
Intangible Resources
Assets rooted in the firm's history, tied to its people, and difficult to imitate. Examples include human, reputation, innovative, and relational resources.
Capability
Capability
The ability to combine resources to create something valuable to the organization.
Incompetencies
Incompetencies
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Deficiencies
Deficiencies
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Core Competencies
Core Competencies
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Distinctive Competencies
Distinctive Competencies
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Valuable (VRIS)
Valuable (VRIS)
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Rare (VRIS)
Rare (VRIS)
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Imitability (VRIS)
Imitability (VRIS)
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Substitutable (VRIS)
Substitutable (VRIS)
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Value Chain
Value Chain
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Upstream
Upstream
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Downstream
Downstream
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Study Notes
- Resources lead to capabilities, which in turn lead to competencies
- Resources are fundamental elements of an organization
Tangible Resources
- Assets that can be observed and quantified
- Financial resources include cash reserves, lines of credit, revenue streams
- Physical resources include manufacturing plants, equipment, and office buildings
- Technological resources include patents, production machinery, and software systems
- Organizational resources include formal reporting structures and IT infrastructure
Intangible Resources
- Assets deeply rooted in a firm's history and tied to its people
- Take longer to develop and are harder for competitors to imitate
- Human resources encompass employee expertise, leadership capabilities, and company culture
- Reputation includes brand recognition, customer loyalty, and goodwill
- Innovative resources involve proprietary knowledge, R&D capabilities, and trade secrets
- Relational resources consist of business networks, supplier relationships, and strategic alliances
Capability
- The ability to combine tangible and/or intangible resources to create value
Organizational Competencies
- Four basic types of competencies:
- Incompetencies can lead to rapid failure
- Deficiencies can lead to competitive disadvantage
- Core competencies can lead to competitive parity
- Distinctive competencies can lead to competitive advantage
- Competitive parity means average economic returns
- Competitive disadvantage means below-average economic returns
- Competitive advantage means above-average economic returns
VRIS Framework (Jay Barney)
- Valuable: Provides economic returns above minimum risk-adjusted expectations
- Rare: Unique and distinctive
- Imitability: Difficult or costly to imitate/copy
- Substitutable: No similar substitutes available
Substitutes vs Competitors
- Substitutes are in different industries
- Competitors are in the same industry
Value Chain (Michael Porter)
- Sequential steps involved in producing goods and services
- "Upstream" refers to raw materials and suppliers
- "Downstream" refers to buyers
- Companies can operate in one or multiple steps of the industry value chain
- Support activities include finance, HR, leasing/real estate management, information systems, risk management, contract management, and G&A services
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