Term
| An advantage that a firm has over its competitors in the activities associated with producing a product or service, thereby allowing it to produce the same product at lower cost best defines the term ___. |
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Definition
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Term
| A company’s primary purpose that often specifies the business or businesses in which the firm intends to compete—or the customers it intends to serve—refers to its ___. |
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Definition
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Term
| What is the first decision that a company which is developing a strategic management process must make when it is initiated? |
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Definition
| In a strategic management process, one of the first decisions a company must make is which markets it will serve. |
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Term
| What is the next step in the strategic management process that a company should take after identifying prospective markets? |
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Definition
| The next step in the strategic management process after identifying prospective markets is attempting to decide what unique value is to be offered in those markets. |
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Term
| What does the term cost advantage mean? |
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Definition
| It is an advantage that a firm has over its competitors in the activities associated with producing a product or service, thereby allowing it to produce the same product at lower cost. |
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Term
| Define business strategy and the four strategic choices it involves. |
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Definition
| A company’s business strategy is defined as a company’s plan to gain, and sustain competitive advantage in the marketplace. This plan is based on the theory its leaders have about how to succeed in a particular market. This theory involves predictions of which markets are attractive and how a company can offer unique value to customers in those markets in a way that won’t be easily imitated by competitors. As such, a business strategy plan to achieve competitive advantage involves making four strategic choices: (1) markets to compete in; (2) unique value the firm will offer in those markets; (3) the resources and capabilities required to offer that unique value better than competitors; and (4) ways to sustain the advantage by preventing imitation. |
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Term
| What does it mean to provide unique value? Briefly explain the two strategies involved in providing unique value. |
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Definition
| Unique value is the reason a firm wins with customers or the value proposition it offers to customers, such as a low cost advantage or differentiation advantage. This is often referred to as a company’s value proposition, or the value that it proposes to offer to customers. Companies typically try to achieve a competitive advantage by choosing between one of two generic strategies for offering unique value: low cost or differentiation. A firm that chooses a low-cost strategy focuses on reducing its costs below those of its competitors. Key sources of cost advantage include economies of scale, lower-cost inputs, or proprietary production know-how. A firm that chooses a differentiation strategy focuses on offering features, quality, convenience, or image that customers cannot get from competitors. |
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Term
| Briefly explain SWOT analysis. |
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Definition
| SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business. External analysis involves: (1) an examination of the competition and the forces that shape industry competition and profitability; and (2) customer analysis to understand what customers really want. The combined results of external analysis with internal analysis of the firm are often summarized as a SWOT analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. External analysis is particularly useful for shedding light on the latter two: opportunities and threats. |
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Term
| Explain the significance of internal analysis. |
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Definition
Internal analysis focuses on the company itself. Internal analysis completes the SWOT (Strengths, Weaknesses, Opportunities, and Threats) by focusing on strengths and weaknesses. More formally, internal analysis involves an analysis of the company’s set of resources and capabilities that can be deployed—or should be developed—to deliver unique value to customers.
In the 1980s, the resource-based view of the firm, also known as the resource-based model, was developed to explain why some firms outperform other firms within the same industry.
Firms that do not have the resources and capabilities that are necessary to implement the strategies they are contemplating, may need to improve, change, or possibly create them in order to offer unique value to their customers. This is where resource allocation becomes an important dimension of strategy. Once a company decides how it hopes to offer unique value, it must allocate the resources necessary to build those resources or capabilities. |
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Term
| List the four primary stakeholder groups and give explanations for each. |
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Definition
1) Capital market stakeholders (shareholders, banks, etc.)
2) Product market stakeholders (customers, suppliers)
3) Organizational stakeholders (employees)
4) Community stakeholders (communities, government bodies, community activists).
Stakeholders are those who have a share or an interest in the activities and performance of an organization. Shareholders are the owners of a company. Some people believe that shareholders (owners of the company) are the most important. Others make the case that customers, employees, governments, or communities should be the primary beneficiaries of business activity. Each stakeholder group can influence the strategic decisions that are made by a company. Sometimes, different stakeholder groups have conflicting views as to the appropriateness of different strategic decisions. Imagine that your company can lower its product costs by closing down your plants in the United States and moving production to China, where labor is cheaper. This will require firing many of your U.S. employees. Both the employee stakeholder group and community stakeholder groups in the cities where your plants are located will perceive this move as negative, and they will try to stop the company from making this decision. However, shareholders and customer stakeholder groups may applaud this decision. It could increase profits for shareholders and lower prices for customers, or both. Because of conflicts like this, companies need to make sure their strategic actions follow accepted ethical standards for business activity. Since stakeholders influence, and are influenced by, strategic decisions made by a company’s management team, it is important to understand and consider the needs of different stakeholder groups when making strategic decisions. |
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Term
| Barriers that help keep firms using the same supplier or buyer by imposing extra costs for substituting suppliers or buyers are known as ___. |
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Definition
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Term
| A firm that provides products that are inputs to another firm’s production process is known as a(n) ___. |
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Definition
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Term
| How do switching costs affect industry rivalry? |
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Definition
| The lower the switching costs, the easier it is for competitors to poach customers, thereby increasing industry rivalry. |
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Term
| How is buying power related to switching costs? |
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Definition
| If customers, or buyers, can easily switch firms, then buyers have increased power. |
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Term
| In what way are switching costs a fundamental part of not just rivalry but also the force of new entrants? |
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Definition
| If buyers can easily switch to new companies attempting to enter the industry, there is a greater threat of new entrants. |
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Term
| Identify the five forces that shape the profit-making potential of an average firm in an industry. Discuss the basic steps involved in using the five forces analysis tool. |
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Definition
Michael Porter, a well-known strategy professor at Harvard, identified five forces that shape the profit-making potential of the average firm in an industry. Those five forces are: (1) rivalry, (2) buyer power, (3) supplier power, (4) threat of new entrants, and (5) threat of substitute products.
There are three basic steps involved in using the five forces analysis tool:
• Step 1: Identify the specific factors relevant to each of the five major forces.
• Step 2: Analyze the strength of each force. To what extent is it shaping the industry’s attractiveness?
• Step 3: Estimate the overall strength of the combined five forces to determine the general attractiveness of the industry, the expectation that an average firm in the industry can earn good profits. |
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Term
| Define switching costs and the forces that it takes into consideration. |
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Definition
Switching costs are barriers that help keep firms using the same supplier or buyer by imposing extra costs for switching suppliers or buyers. It includes any cost to the customer for changing brands. Switching costs for buyers are related to the degree of product standardization. Switching costs are a fundamental part of not just rivalry but also the other four forces:
1) Buyer power. If customers, or buyers, can easily switch firms, then buyers have increased power.
2) Supplier power. If firms cannot switch suppliers easily, then suppliers have increased power.
3) New entrants. If buyers can easily switch to new companies attempting to enter the industry, there is a greater threat of new entrants.
4) Substitutes. If buyers can switch to substitute products without much difficulty, firms face an increased threat from those substitutes. |
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Term
| Define barriers to entry and briefly mention its characteristics. |
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Definition
Not all industries are created equal. Industries in which the average firm is making good profits can often be targets, enticing firms from outside those industries to enter. Likewise, quickly growing industries are often attractive, which increases the incentive for outside firms to enter those industries. One of the important tasks for strategists is to identify firms that might enter their industries. New entrants pose a double hazard. First, they typically are anxious to gain market share. Unless the industry is growing quickly, that market share must come at the expense of existing firms. Second, new entrants bring new production capacity, which tends to drive prices down unless demand is growing faster than the increase in supply.
New entrants mean greater rivalry, so existing firms often try to discourage new entrants by building barriers to entry. Barriers to entry means the way organizations make it more difficult for potential entrants to get a foothold in the industry. The higher the barriers to entry, the more difficult it is for potential entrants to get a foothold in the industry, and the more likely that they are to quit or choose to not enter in the first place. Likewise, incumbent firms, those already in the industry, often signal new entrants that they are likely to retaliate by slashing prices, increasing advertising, or other competitive moves that help the established firms hold on to their market share. If the threats of retaliation are perceived as credible, potential entrants might decide to stay away. |
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Term
| Explain the reason why substitute products are taken as a threat by firms. |
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Definition
| A substitute is a product that is fundamentally different yet serves the same basic function or purpose as another product. One of the primary problems for the strategist in assessing substitutes is determining what a substitute is and what isn’t. It involves determining the boundary of an industry. Generally, something can be considered a substitute if it serves the same function, such as quenching thirst, but does so with a different set of characteristics. If the product has the same basic characteristics and is made using the same general set of inputs, it would be considered part of rivalry, rather than a substitute. In general, substitutes put downward pressure on the price that firms in an industry can charge. The factors that determine the intensity of a threat of substitutes include the awareness and availability of substitutes and their price and performance compared to an industry’s products. |
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Term
| Mention the general environmental factors that can affect the profit potential of a firm. Briefly explain the factors of technological change and social/cultural forces. |
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Definition
• Complementary products or services
• Technological change
• General economic conditions
• Population demographics
• Ecological/natural environment
• Global competitive forces
• Political, legal, and regulatory forces
• Social/cultural forces
Technological change within an industry has the potential to radically reshape a firm’s landscape, and sometimes society with it. Technological changes can include new products, such as smart phones; new processes, such as hydraulic fracturing (fracking), which has dramatically increased the output of the natural gas industry; or new materials, such as lithium batteries, which make electric automobiles possible. In many industries, the pace of technological change has accelerated over the last couple of decades. Managers find it increasingly important to consistently scan the environment to locate potential new technologies that might affect their industries. Not only can technology change the nature of rivalry in an industry by giving some firms an upper hand in gaining market share, but it also can often lower barriers to entry.
Social forces refer to society’s cultural values and norms, or attitudes. Values and attitudes are so fundamental that they often affect the other six general environmental forces, shaping the overall landscape in which firms compete. Like the other environmental forces, however, social forces can create opportunities if a firm happens to be among the first to act on changes in values and attitudes. Social forces are different, sometimes radically so, in different countries. Firms that compete in a global industry must understand differences among consumers in each country they serve. |
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Term
| A firm’s advantage becomes stronger if it develops ___, processes that are designed to continuously expand existing resources or to improve or modify operating capabilities. |
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Definition
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Term
| A resource creates ___ if its contributions allow a company to produce a product or service that is of worth to end users. |
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Definition
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Term
| The characteristics that make a resource or capability difficult to imitate is known as ___. |
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Definition
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Term
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Definition
| : Resources are what a firm employs to create value and competitive advantage. |
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Term
| What is an intangible resource? |
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Definition
| It is an economically valuable asset that does not have a physical presence. |
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Term
| Define capabilities and briefly describe the two types of capabilities. |
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Definition
| Capabilities are the procedures, processes, and routines firms employ in their activities. Capabilities represent how firms do things that is, the processes they use. Operating capabilities refer to procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors. Competitive advantage relies on a strong set of operating capabilities. A firm’s advantage becomes stronger if it develops dynamic capabilities. These are processes that are designed to continuously expand existing resources or to improve or modify operating capabilities. Dynamic capabilities are practiced and refined over time and through repetition. |
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Term
| What is an asset and how does it create an economic value to an organization? |
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Definition
| Assets are tangible or intangible resources or factors of production that create economic value for the firm when employed. Most resources are, or could be, counted and quantified on a firm’s balance sheet as assets. Accountants classify resources as tangible or intangible assets. It enables the firm to conceive of and implement strategies that improve its efficiency and effectiveness. |
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Term
| Differentiate between explicit knowledge and tacit knowledge. |
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Definition
| The actions needed to imitate a sequence can be codified, or written down, and easily learned by others. Such easy-to-codify-and-learn knowledge is referred to as explicit knowledge. Tacit knowledge is just the opposite. The skills that are difficult, maybe even impossible, to learn, teach, or coach, are based on tacit knowledge. Tacit knowledge is sticky, or immobile, and difficult to imitate by competitors. |
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Term
| State the difference between operating capabilities and dynamic capabilities. |
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Definition
| Capabilities are processes that the firm has developed to coordinate human activity in order to achieve specific goals. Operating capabilities are procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors. Dynamic capabilities are procedures, processes, and routines that continuously expand existing resources or improve operating capabilities. |
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Term
| Define rarity and explain how it creates competitive advantage. |
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Definition
| Something that is rare, is to be uncommon, or not available to other competitors. Competitive advantages arise when resources or capabilities possess two attributes: value and rarity. Unique is often used as a synonym for rare. Rare or unique resources create competitive advantage through a basic principle of economics—scarcity. When products or services are scarce, users are often willing to pay a higher price for them than they would be if the same products or services were more commonly available, leading to higher company profits. |
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Term
| can be best defined as the reason a firm wins with customers or the value proposition it offers to customers, such as a low cost advantage or differentiation advantage. |
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Definition
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Term
| what is the main purpose of the strategic management process? |
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Definition
| Specifying a high-level plan that an organization will employ to achieve competitive advantage |
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Term
| studies the factors that influence an organization’s appeal and environment. |
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Definition
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Term
| examines a company’s resources and capabilities to configure a firm’s ability to deliver unique value. |
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Definition
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Term
| a patent is an example of a |
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Definition
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Term
MindaX is a beverage manufacturing company. Despite its various promotional efforts, the company finds it difficult to get more customers. Its market analysts later determine that its price is the reason. They are sold at $10 per liter, which makes it difficult for customers to buy this beverage frequently, so, they opt for other lower priced sodas instead. This scenario best illustrates ________.
a) price reduction
b) price increase
c) price allocation
d) price sensitivity |
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Definition
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Term
The managers at Spring Hotels want to find out how their competitor, Crimson Valley Hotels, consistently outdoes them. Spring Hotels have the same facilities and equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson Valley Hotels fails. This is because Crimson Valley has elements such as great location, beautiful architectural design, and customer-friendly employees that create an edge over other companies in its industry. Which of the following does this scenario exemplify?
a) Complementary products or services
b) Resource-based view of firm
c) Attractiveness of an industry
d) Segmentation analysis |
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Definition
| b) resource based view of the firm |
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Term
Femi, the founder of Pluto Inc., feels that the company has been able to continuously maintain competitive advantage due to the plans of action she initiated years ago. The plan involved establishing and maintaining contacts with influential business personnel, amicably taking over small companies that would help bringing in profits for Pluto Inc., and creating raw materials from scratch rather than buying from other companies. This type of planning is an example of ________.
a) resource pools
b) corporate think tanks
c) strategic vehicles
d) functional vehicles |
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Definition
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Term
| The goal of a strategic business plan is to ________. |
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Definition
| create competitive advantage |
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Term
| Competition among firms within an industry best defines the term ________. |
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Definition
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Term
| A product that is fundamentally different yet serves the same function or purpose as another product best defines the term ________. |
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Definition
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Term
Which of the following statements is true of a fragmented industry?
a) It is characterized by rivalry that is typically less intense.
b) It usually has very few competitors and tends to be dominated by a few large firms.
c) It is difficult to keep track of the pricing and competitive moves of multiple players.
d) It involves companies selling the same brand of products that are scattered in different locations. |
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Definition
| b) it usually has very few competitors and tends to be dominated by a few large firms |
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Term
Bright Inc. is a toothpaste manufacturing company that is facing intense competition from its rivals. In order to encourage higher consumption of its products as well as minimize brand switching among its existing consumers, Bright introduced sweepstakes as a consumer sales promotion strategy. However, its rivals retaliated by introducing deals such as a featured price which is lower than the regular price, buy one, get one free offers, and large package offers that give a percentage more free. This scenario best illustrates a ________.
a) primary industry
b) secondary industry
c) fragmented industry
d) concentrated industry |
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Definition
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Term
Which of the following statements is true about concentrated industries?
a) These industries have few competitors and rivalry is less intense.
b) Smaller competitors usually respond aggressively to actions taken by large firms.
c) Few large competitors are aware of each other's presence and therefore more likely to create conflict.
d) If firms are approximately the same size, they tend to be able to respond, or retaliate, strongly to moves by rival firms. |
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Definition
| a) these industries have few competitors and the rivalry is less intense |
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Term
Which of the following statements is true of standardization of products?
a) It is easier to convince the customers to switch brands.
b) They meet customer needs in unique ways.
c) It makes buyers more loyal to a particular brand.
d) These products are usually inimitable and of high quality. |
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Definition
| a) it is easier to convince the customers to switch brands. |
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Term
| Products that can be used in tandem with those from another industry best define the term ________. |
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Definition
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Term
| according to economists, a fragmented industry is an industry which |
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Definition
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Term
In the context of rivalry, which of the following statements is true of products by a firm?
a) Differentiated products engender loyalty in customers.
b) Standardized products make it difficult for people to switch brands.
c) Firms that sell differentiated products often have to compete by offering discounts.
d) Product price wars decrease rivalry and increase profits. |
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Definition
| a) differentiated products engender loyalty in customers |
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Term
| true or false? product that is fundamentally different yet serves the same basic function as another product is considered a substitute |
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Definition
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Term
| Attractive industries are those where firms ________. |
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Definition
| have created power over buyers and suppliers |
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Term
Which of the following statements is true about the role of technology in a firm's profitability?
a) Technological change within an industry does not affect a firm’s landscape.
b) Technological change can often lower barriers to entry.
c) Incorporating new technology early creates barriers for new entrants.
d) Firms who are late to adopt new technologies benefit more than early adopters. |
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Definition
| b) technological change can often lower barriers to entry |
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Term
| A visual description of the steps required to turn raw materials into finished products and/or services most accurately defines the term __________. |
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Definition
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Term
| All assets, capabilities, organizational processes, firm attributes, information, knowledge, and so on, controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness most accurately defines the term __________. |
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Definition
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Term
Neptune LLC is a company that manufactures electronic products. Its employees are given specific guidelines regarding the resources and capabilities that they should invest their company’s money and time in. The employees are expected to follow these guidelines during Neptune’s lean as well as peak seasons. Which of the following terms best reflects the guidelines that the employees of Neptune LLC are expected to follow?
a) Capabilities
b) Assets
c) Priorities
d) Attributes |
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Definition
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Term
| A firm’s values and rankings of what is most important most accurately defines the term __________. |
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Definition
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Term
| The procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors most accurately define the term __________. |
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Definition
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Term
The customers, investors, and employees of Pisces Inc. are invariably satisfied with the services and culture of the company. Pisces Inc. has delivered on all its promises and has continued to create a sense of worth among its varied audiences. Which of the following terms best categorizes the elements of Pisces Inc. described in this scenario explaining?
a) Competitive parities
b) Dynamic capabilities
c) Network externalities
d) Operating capabilities |
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Definition
| d) operating capabilities |
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Term
| Procedures, processes, and routines that continuously expand existing resources or improve operating capabilities most accurately define the term __________. |
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Definition
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Term
The management at WonderPlanners Inc. wants to improve their production and operating capabilities by adopting a leaner process. As such, the employees of WonderPlanners are asked to eliminate the excess use of efforts and materials. WonderPlanners Inc. finally manages to achieve a competitive advantage after its employees follow these new practices repeatedly over time. From the information given in this scenario, we can infer that WonderPlanners Inc. has developed __________.
a) competitive parity
b) dynamic capabilities
c) service inimitability
d) network externalities |
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Definition
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Term
| what is created when the end user enjoys direct pleasure and satisfaction from a company’s product? |
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Definition
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Term
Leon Royal Hotel was the first inn in the county of Belvore. It had started out as a small investment with seven rooms, providing bed and breakfast in 1949 to many travelers who came to Belvore. Another inn called Meltown Inn started out a decade after Leon Royal Hotel. After 20 years of giving unique and satisfying service to its customers, Leon Royal Hotels was well established as a large hotel with more than 1,500 rooms. The facilities and services provided by the hotel made it one of the best hotels in the Belvore, while Meltown Inn started losing profits and eventually shut down in 1968 because of providing bad service. Which of the following factors of inimitability is explained in this scenario?
a) Tacit knowledge
b) Path dependence
c) Casual ambiguity
d) Complexity |
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Definition
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Term
A company named Runathon Inc. had opened its store that displayed only shoe brands. The employees at the store were very service-oriented, and attended their customers and solved their queries efficiently. Runathon also had a special team of experts who advised customers on the type of shoe to choose for a particular sport. Few years later, another company called FitRight Corp. opened its store right opposite Runathon. Although FitRight had shoe brands, trekking gear, and sportswear displayed in its store, it was not able to attain the profits that Runathon did because its salespeople were not as experienced and learned as Runathon. Which of the following factors of inimitability did Runathon Inc. have?
a) Complexity
b) Time compression diseconomy
c) Path dependence
d) Virtuous circle |
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Definition
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Term
The CEO of Saturn Interiors Corp., an interior designing company, stated in an interview that he credits the company’s success to the scenic environment that the company is located in. The employees of Saturn Interiors are inspired by the beauty of nature and that helps them create perfectly aesthetic homes for their customers. A similar company named Virgo Designs LLC had also started up in the same location and around the same time as Saturn Interiors. However, this company was unable to provide the same services to its customers even though the management hoped to do what Saturn Interiors did. It was later found that the employees of Saturn Interiors were trained in a specific way, and the culture of the company was very different from the way Virgo Designs functioned. Which of the following factors of inimitability does Saturn Interiors Corp. have?
a) Tacit knowledge
b) Complexity
c) Causal ambiguity
d) Path dependence |
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Definition
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Term
Speed Express, a courier company, proves to be a definite challenge to its competitors. The technology, personnel, services, and organizational structure of the company are intricately bound together to create a system that is widely appreciated by its customers. Speed Express has state-of-the-art facilities for its transportation, delivery, or packaging operations. Speed Express also has a range of travelling bags and brand of wrist watches. The company’s success rests on the complex interplay between all of its functions, products, and operations. Customers remain loyal to the company and prefer it over other brands and services. Which of the following factors of inimitability does Speed Express have?
a) Time compression diseconomy
b) Path dependence
c) Complexity
d) Tacit knowledge |
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Definition
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Term
ZipTag Inc. is an online company that allows venders of varied products to display their products to prospective buyers. This company has been providing service to both customers and sellers and has established itself in the market as a credible company to conduct business with. This has caused more dealers to display their products in ZipTag as they trust that the company will provide the necessary advertising to pull in prospective customers. This is an example of a __________.
a) time compression diseconomy
b) virtuous circle
c) tacit knowledge
d) path dependence |
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Definition
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Term
Which of the following statements best describes a firm’s resources?
a) They explain why firms allocate critical resources to achieve key objectives.
b) They represent how firms do things and which processes they use.
c) They refer to what a firm employs to create value and competitive advantage.
d) They depict the production processes a firm uses. |
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Definition
| c( they refer to what a firm employs to create value and competitive advantage |
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Term
Which of the following statements best describes a firm’s capabilities?
a) They represent how firms do things.
b) They depict a firm’s strength relative to its competitors.
c) They explain why firms allocate critical resources to achieve key objectives.
d) They refer to what a firm employs to create value and competitive advantage. |
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Definition
| a) they represent how firms do things |
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Term
| knowledge that is easy to codify and learn |
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Definition
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Term
Time compression diseconomies happen when __________.
a) more sellers attract more buyers, who in turn attract more sellers
b) an action increases cost and efficiency
c) the value of a product increases with the number of users
d) firms establish long-term contracts with customers |
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Definition
| b) an action increases cost and efficiency |
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Term
Sheng, the CEO of Mirrorz Inc., comes up with a plan to implement business unit strategies successfully. He decides to do this by making technical advancements in the manufacturing process of the products and developing a solid financial system run by an efficient team. He also plans to establish a marketing team that would sell to people who would not normally buy the product. The ultimate mission of the company would be to provide a customer friendly environment. The plan initiated by Sheng can be best categorized as a(n) ________.
a) segmentation analysis
b) emergent strategy
c) functional strategy
d) business unit strategy |
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Definition
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Term
The final step in a strategic management process is to ________.
a) formalize a company's mission statement
b) analyze customer needs and preferences
c) find strategy vehicles that help a firm enter attractive markets
d) implement the strategy chosen during the strategy formulation process |
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Definition
| d) implement the strategy chosen during the strategy formation process |
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Term
Erik, the CEO of Indigo Inc. wants to improve the efficiency and effectiveness of his company. In order to do this, he lists out the assets of Indigo and the knowledge that the company has acquired over the years. Erik also analyzes the company’s processes and its overall culture. The factor of production that Erik is studying can be best categorized as ________.
a) capabilities
b) resources
c) attributes
d) priorities |
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Definition
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Term
Speed Express, a courier company, proves to be a definite challenge to its competitors. The technology, personnel, services, and organizational structure of the company are intricately bound together to create a system that is widely appreciated by its customers. Speed Express has state-of-the-art facilities for its transportation, delivery, or packaging operations. Speed Express also has a range of travelling bags and brand of wrist watches. The company’s success rests on the complex interplay between all of its functions, products, and operations. Customers remain loyal to the company and prefer it over other brands and services. Which of the following factors of inimitability does Speed Express have?
a) Time compression diseconomy
b) Path dependence
c) Complexity
d) Tacit knowledge |
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Definition
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Term
| The eight categories that help shape the general environment are: |
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Definition
• Complementary products or services
• Technological change
• General economic conditions
• Population demographics
• Ecological/natural environment
• Global competitive forces
• Political, legal, and regulatory forces
• Social/cultural forces |
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Term
Erik, the CEO of Indigo Inc. wants to improve the efficiency and effectiveness of his company. In order to do this, he lists out the assets of Indigo and the knowledge that the company has acquired over the years. Erik also analyzes the company’s processes and its overall culture. The factor of production that Erik is studying can be best categorized as ________.
a) capabilities
b) resources
c) attributes
d) priorities |
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Definition
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