Deck 5: Hemoglobin Production Disorders and Testing

Question 1

What is the relevance of the resource-based view of the firm to strategic management in a global environment?

Answer 1

The resource-based view of the firm is an attempt to bring attention to the importance of a corporation's resources in strategic management. For much of the 1980s, Porter's concepts of industry analysis and competitive strategy dominated the field of strategic management to such an extent that many felt that industry structure alone seemed to determine a firm's profit potential. Unfortunately, this emphasis on the industry tended to ignore a firm's core skills and competencies. What good is the knowledge that a niche in the market exists that can be reached through a focused differentiation competitive strategy if a corporation doesn't have the resources to implement such a strategy? Experts on the resource-based view suggest that differences in performance among companies may be explained best not through differences in industry structure identified by industry analysis, but through differences in corporate assets and resources and their application. The resource-based view of the firm is compatible with the traditional concepts of SWOT and distinctive competence, popular in the field since the 1960s. The only danger with the resource-based approach is that analysts may put too much emphasis on internal factors and not enough on external factors. Nevertheless, the idea that the durability and imitability of corporate resources determine competitive advance is a very useful one.

Question 2

Explain how using an IFAS Table impacts the understanding of a company's internal resources and capabilities.

Answer 2

An IFAS (Internal Factor Analysis Summary) is one way to organize the internal factors into strengths and weaknesses as well as to analyze how well a particular company's management is responding to these specific factors in light of the perceived importance of these factors to the organization.

Question 3

Why should information systems be included in the analysis of a corporation's strengths and weaknesses?

Answer 3

Although not always considered a major part of the traditional, functionally organized business corporation, information systems have become very important to those corporations operating in a dynamic and complex environment. From a strategic management point of view, information systems are important because they can (1) provide a basis for analyzing early warning signals that originate both externally and internally and (2) provide the information necessary to make strategic decisions. To the extent that a corporation has a completely integrated information system, it is a strength that can provide a significant competitive advantage. Environmental scanning is more systematic with information dealing with strategic factors getting to corporate- and business-level planners and decision makers in a timely manner. A computerized information system can be used to develop a series of likely industry scenarios as well as a number of alternative strategies and implementation programs. Efficiencies coming from a well-integrated information system can also be shared with customers and suppliers, thus serving as a competitive weapon in a dynamic marketplace.

Question 4

How can value-chain analysis help identify a company's strengths and weaknesses?

Question 5

What kind of internal factors help managers determine whether a firm should emphasize the production and sales of a large number of low-priced products or a small number of high-priced products?

Question 6

How are organizational resources linked to the competitive advantages and corporate performance of an organization?

Question 7

How does the resource-based view of the firm provide a superior means of evaluating a company's competitive advantage?

Question 8

Why is organizational culture important for a business to effectively formulate its strategy?

Question 9

How is the possession of valuable and scarce resources of an organization related to the planning and formulation of its corporate-level strategy for enhancing its competitive advantages in the market?