MBA 705 MINSUN KIM EXAM 2 FULL REVISION
NOTES WITH BUSINESS STRATEGY AND CASE
ANALYSIS CONCEPTS
◉ Resource Immobility.
Answer: -resources tend to be "sticky" and do not move easilty
-SWA has sustained advantage due to superior performance,
competitors have unsuccessfully imitated their model
◉ The VRIO Framework.
Answer: A strategic resource is an asset that is:
V- Valuable
R- Rare
I- Difficult to Imitate
O- Organized to capture value
-all resources do not lead to competitive advantages
-organizations that own "strategic resources" have important
competitive advantages over organizations that do not
-firm can gain and sustain competitive advantage only when it has
resources that satisfy all VRIO criteria
,◉ V- Valuable Resource.
Answer: source is valuable if it helps a firm exploit an external
opportunity or offset an external threat
-although airline industry is extremely competitive, SWA turns a
profit virtually every year. One reason for their success is a
legendary organizational culture that inspires employees to do their
very best
◉ R- Rare resource.
Answer: resource is rare if the number of firms that possess it is less
than the number of firms it would require to reach a state of perfect
competition
- SWA's culture provides the firm with uniquely strong employee
relations in an industry where strikes, layoffs, and poor morale are
common
◉ I- Difficult to Imitate Resources.
Answer: resource is difficult to imitate if firms that do not possess
the resource are unable to develop or buy the resources at a
comparable cost
- SWA's culture arose from its very humble beginnings and has
evolved across decades. Because of this unusual history, other
airlines could not replicate their culture, regardless of how hard they
try
, ◉ O- Organized to Capture Value.
Answer: the characteristic of having in place an effective
organizational structure, processes, and systems to fully exploit the
competitive potential of the firm's resources, capabilities and
competencies
- the influence of SWA's organizational culture extends to how
customers are treated by employees. Executives strongly encourage
flight attendants to entertain passengers, like hiding in an overhead
compartment. Processes related to passengers are infused with
customer service attention and actions
◉ Intellectual Property.
Answer: -refers to creations of the mind
- if it meets the four VRIO criteria:
- it constitutes a strategic resource
- it can serve as a value-added resource for organizations
-various methods exist to protect from imitation by rivals
◉ Four Types of intellectual property.
Answer: Patents
Trademarks
Copyrights
Trade Secrets
NOTES WITH BUSINESS STRATEGY AND CASE
ANALYSIS CONCEPTS
◉ Resource Immobility.
Answer: -resources tend to be "sticky" and do not move easilty
-SWA has sustained advantage due to superior performance,
competitors have unsuccessfully imitated their model
◉ The VRIO Framework.
Answer: A strategic resource is an asset that is:
V- Valuable
R- Rare
I- Difficult to Imitate
O- Organized to capture value
-all resources do not lead to competitive advantages
-organizations that own "strategic resources" have important
competitive advantages over organizations that do not
-firm can gain and sustain competitive advantage only when it has
resources that satisfy all VRIO criteria
,◉ V- Valuable Resource.
Answer: source is valuable if it helps a firm exploit an external
opportunity or offset an external threat
-although airline industry is extremely competitive, SWA turns a
profit virtually every year. One reason for their success is a
legendary organizational culture that inspires employees to do their
very best
◉ R- Rare resource.
Answer: resource is rare if the number of firms that possess it is less
than the number of firms it would require to reach a state of perfect
competition
- SWA's culture provides the firm with uniquely strong employee
relations in an industry where strikes, layoffs, and poor morale are
common
◉ I- Difficult to Imitate Resources.
Answer: resource is difficult to imitate if firms that do not possess
the resource are unable to develop or buy the resources at a
comparable cost
- SWA's culture arose from its very humble beginnings and has
evolved across decades. Because of this unusual history, other
airlines could not replicate their culture, regardless of how hard they
try
, ◉ O- Organized to Capture Value.
Answer: the characteristic of having in place an effective
organizational structure, processes, and systems to fully exploit the
competitive potential of the firm's resources, capabilities and
competencies
- the influence of SWA's organizational culture extends to how
customers are treated by employees. Executives strongly encourage
flight attendants to entertain passengers, like hiding in an overhead
compartment. Processes related to passengers are infused with
customer service attention and actions
◉ Intellectual Property.
Answer: -refers to creations of the mind
- if it meets the four VRIO criteria:
- it constitutes a strategic resource
- it can serve as a value-added resource for organizations
-various methods exist to protect from imitation by rivals
◉ Four Types of intellectual property.
Answer: Patents
Trademarks
Copyrights
Trade Secrets
