Activity or process that creates competitive advantage and the ability to add value
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What are capabilities?
Suitability of resources and competencies that allow the firm to generate value
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What is resource based view?
You have competencies and then resources, they come together to form capabilities.
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Define threshold resources and capabilities
Needed for the organisation to meet requirements to compete in the market
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Define distinctive resources and capabilities
Required to have competitive advantage and create value
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Define CAGE framework
importance of cultural, administrative, geographical and economic distance
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What is an acquisition?
Purchasing majority shares in a target company
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What is a merger?
Combination of 2 separate organisations to form a new company
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Whats a strategic alliance?
Where 2 or more organisations share resources and activities to pursue a common strategy
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What is an international strategy?
Range of options for operating outside an organisations country of origin
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what is global strategy?
High coordination of extensive activities dispersed geographically in many countries.
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What is strategic drift?
Tendency for strategies to develop incrementally on the basis of historical and cultural influences, but fail to keep pace with a changing environment.
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What is an example of internal capability development?
Build a culture promoting innovation
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What is an example of external capability development?
Alliances, acquisition and joint ventures
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Define functional structure
divides responsibilities according to the organisations primary specialist roles such as production, sales, etc
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Define divisional structure
Built up of separate divisions on the basis of products, services and geographical areas.
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Define matrix structure
Different structural dimensions e.g. product divisions and geographical territories.
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Define project based structure
Where teams are created, do the work and then dissolves e.g engineering firms.
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Define transnational structure
Combines local responsiveness with high global coordination
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Define a synergy
Benefits gained where firms complement each other e.g film and music
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What is a value system?
Set of inter-organisational links that are necessary to create a product or service
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What is a value chain?
Describes internal activities a firm engages in when transforming inputs to outputs
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What are primary activities?
Directly concerned with the creation/delivery of a product or service e.g. ops.
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What are supporting activities?
Help to improve the effectiveness of primary activities e.g. HRM
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What is vertical integration?
Entering activities where the organisation is its own supplier or customer
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What is backward integration?
Development into activities concerned with inputs of a company
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What is forward integration?
Development into activities with outputs of a company
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What are the 2 corporate parent roles?
Portfolio manager, synergy manager and parental developer
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What is an SBU?
Supplies goods or services for a distinct domain activity
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Other cards in this set
Card 2
Front
What are capabilities?
Back
Suitability of resources and competencies that allow the firm to generate value
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