Policy Midterm: chapter 3 part 4

Management 3140 with Curran at University of Charlotte

About this deck

By: Allie Bifulco
Created: 2011-10-03
Size: 22 flashcards
Views: 2

About StudyBlue

STUDYBLUE makes things that make you better at school. Things like online flashcards with photos and audio. Things like personalized quizzes and friendly reminders about when (and what) to study next. Think of it as a digital backpack™: access to all of your study materials online and on your phone. STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy

Sign up (free) to study this.

firm resources and sustainable competitive advantages

-resource must be valuable

-rare among firms current/potential competitors

-difficult to imitate

-no strategically equivalent substitutes

resources are valuable only when they

enable the firm to formulate and implement strategies that improve effectiveness and efficiency

valuable when it

neutralizes threats or exploits opportunities

not many firms possess

rare resources

if resource inimitable, profits generated are more likely to be

sustainable

sources of inimitability

physical uniqueness, path dependency, casual ambiguity, social complexity

physical uniqueness

beautiful resort location

path dependency

unique because of all that has happened along the path followed for their development and/or accumulation (gerber)

causal ambiguity

would be competitors thwarted because it is impossible to disentangle the causes of either what the valuable resource is or how it can be created

social complexity

characteristic of firm's resources-is costly to imitate bc social engineering required is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, reputation with suppliers and customers

substitute a similar resource that allows

same strategy - form of substitutability

very different resource can become

strategic substitute (i.e. amazon uses internet, no stores)

resource based view of firm helps identify when

firm will have competitive advantage and enjoy high levels of profitability- does not show how profits distribute

profits may be sustainable but only flow to

employees and management- not owners

four factors help explain extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate

employee bargaining power

employee replacement costs

employee exit costs

manager bargaining power

employee bargaining power

if employees are vital to forming a firm's unique capability, they will earn a higher wage- enhances their bargaining power

employee replacement costs

if employees' skills are idiosyncratic and rare they should have high bargaining power based on high cost required to replace them

employee exit costs

tend to reduce an employee's bargaining power and an individual may face high personal costs when leaving the organization- may be firm-specific and useless to other firms

casual ambiguity may make it difficult for

the employee to explain his or her specific contribution to a given project

manager bargaining power

managers' power is based on how well they create resource-based advantages

managers are generally charged with

creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, financial capital

activities managers participate in provide them with

sources of info that may not be readily available to others

About this deck

By: Allie Bifulco
Created: 2011-10-03
Size: 22 flashcards
Views: 2

About StudyBlue

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy