Exam 5: The Internal Environment

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What are some of the things that make a resource or capability difficult for competitors to imitate?

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.The different forms of intellectual property protection are a first line of defence against imitation by rivals. They include patents,trademarks,and copyrights. While important,these sometimes only slow imitation.
.Reverse-engineering and other forms of "inventing around patents" are commonly used to create products and processes that are similar (but not exactly the same)to those that have been patented. Still,intellectual property protection is an important barrier to imitation.
.Competitors find it difficult to imitate processes and routines that occur "behind the scenes" of a company.
.Some processes are so complex,involving many people and tasks,that even employees of the company involved in a process would find it difficult to replicate it on their own.
.Companies are often able to keep proprietary manufacturing processes from being imitated because they are not widely observed by outsiders.
.A resource or capability that is socially complex or subject to causal ambiguity may be difficult to imitate. Consider a team-based process. It can be hard to know whether the team is successful due to the outsized influence of one member,equal contributions from all members,the physical work environment,the culture of the organization,or some combination of these. So a firm that wishes to duplicate the team's performance will have to identify all of the variables that could contribute to its success and copy them in the right proportions and combinations.

Tangible resources include physical assets such as equipment,buildings,land,furniture,money and patents.

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According to the resource-based view of the firm:

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Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.

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Why is it important to prevent core competencies from becoming core rigidities?

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Every core competence is a capability and every capability is a core competence.

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If a core competence is emphasized when it is no longer competitively relevant,it can become a core rigidity.

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Traditional resource-based view:

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What is the resource-based view of the firm? What categories of resources does a firm possess?

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Given enough time,any firm's competitive advantage can be imitated by its competitors.

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The foundation of many capabilities lies in the unique skills and knowledge of a firm's employees.

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Resources that are not physical in nature,including such things as relationships with suppliers,an organization's culture,business processes or the skills of the founders are ________ resources.

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By emphasizing core competencies when formulating strategies,companies learn to compete primarily on the basis of:

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If an organizational capability or resource is valuable and unique,but it is easy to imitate:

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Compared to tangible resources,intangible resources are an inferior source of core competencies.

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Value chain activities:

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Describe the importance of internal analysis to the strategic success of the firm.

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Internal analysis enables a firm to determine what the firm:

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Compared to tangible resources,intangible resources are:

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If an organization possesses a valuable and unique resource,it is always a source of competitive advantage.

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