MGT 405 Chpt 3

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LShak87
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67516
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MGT 405 Chpt 3
Updated:
2011-02-19 19:20:55
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strategic management
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Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability
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  1. firm-specific strengths that allow a company to differentiate its products from those offered by rivals and/or achieve substantially lower costs than its rivals
    distinctive competencies
  2. assets of a company, both tangible and intangible
    resources
  3. physical entities, such as land, buildings, plant, equipment, inventory, and money
    tangible resources
  4. nonphysical entitites that are created by managers and other employees, such as brand names, the reputation of the company, the knowledge that employees have gained through experience, and the intellectual property of the company, including that protected through patents, copyrights, and trademarks
    intangible resources
  5. company's skills at coordinating its resources and putting them to good use
    capabilities
  6. the happiness or satisfaction gained from consuming or owning the product
    utility
  7. the price a company charges for goods or service is typically less than the utility value placed on goods or service by the customer
    consumer surplus
  8. the idea that a company is a chain of activities for transforming inputs into outputs that customers value
    value chain
  9. the design, creation, and delivery of the product, its marketing, and its support and after-sales service
    primary activities
  10. concerned with the design of products and production process
    research and development
  11. concerned with the creation of a good or service
    production
  12. provide inputs that allow the primary activities to take place
    support activities of the value chain
  13. controls the transmission of physical materials through the value chain, from procurement through production and into distribution
    materials management (logistics)
  14. this function ensures that the company has the right mix of skilled people to perform its value creation activities effectively
    human resources
  15. largely electronic systems for managing inventory, tracking sales, pricing products, selling products, dealing with customer service inquiries, and so on
    information technology
  16. company-wide context within which all the other value creaton activities take place; the organizational structure, control systems, and company culture
    company infrastructure
  17. quantity of inputs that it takes to produce a given output
    efficiency
  18. the output produced per employee
    employee productivity
  19. when customers perceive that a products attributes provide them with higher utility than the attributes of products sold by rivals
    superior quality
  20. the important attributes are things such as product's design and styling, its aesthetic appeal, its features and functions, the level of service associated with the delivery of the product, and so on
    quality as excellence
  21. when a product consistently does the job it was designed for, does it well, and rarely, if ever, breaks down
    quality as reliability
  22. an influential management strategy making increasing product reliability the central goal
    total quality management (TQM)
  23. development of a new process for producing products and delivering them to customers
    process innovation
  24. development of products that are new to the world or have superior attributes to existing products
    product innovation
  25. the time that it takes for a good to be deliver or a service to be performed
    customer response time
  26. net profits over invested capital
    ROIC
  27. factors that make it difficult for a competitor to copy a company's distinctive competencies
    barriers to imitation
  28. a company's commitment to a particular way of doing business, that is, to developing a particular set of resources and capabilities
    strategic commitment
  29. the ability of an enterprise to identify, value, assimilate, and use new knowledge
    absorptive capacity
  30. A dynamic industry environment is....
    ...one that is changing rapidly
  31. companies find it difficult to change their strategies and structures when adapting to changing competitive conditions
    inertia argument
  32. the way a company makes decisions and manages it's processes
    organizational capabilities
  33. your greatest assest can cause your greatest demise
    Icarus Paradox
  34. enable a company to earn a profit rate that is above the industry average
    valuable distinctive competencies
  35. The source of a competitive advantage is...
    ...a superior value creation
  36. To create superior value a company must...
    • differentiate its product to create more value
    • lower its product costs
    • do both
  37. The 4 building blocks of competitive advantage are...
    • efficiency
    • quality
    • innovation
    • responsiveness to customers
  38. The durability of a company's competitive advantage depends on...
    • height of barriers to imitation
    • capability of competitors
    • environmental dynamism
  39. Three factors seem to contribute to failure:
    • organizational inertia in the face of environmental change
    • the nature of a company's prior strategic commitments
    • Icarus paradox
  40. What are the primary activities of a Value Chain?
    • Production
    • Marketing & Sales
    • Customer Service
  41. What are the primary support activities of a Value Chain?
    • Materials Management (logisitcs)
    • Human Resources
    • Information Systems
    • Company Infrastructure

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