MAN 4720 CHAPTER 3 QUESTIONS AND ANSWERS (GRADED A+)

MAN 4720 CHAPTER 3 QUESTIONS AND
ANSWERS (GRADED A+)
Value Creation - ANSWER-The difference between the benefits customers experience
from product or service attributes and the amount customers are willing to pay for those
attributes

Value Capture - ANSWER-The firm's ability to access, retain, or otherwise benefit from
the value created

Resources - ANSWER-Tangible and Intangible assets owned or otherwise accessible
by the firm
-Often routine and knowledge based and dependent on social interactions among
employees
-Often develop within specific functional areas

Tangible - ANSWER-Can be seen and quantified

Intangible - ANSWER-Not concrete and may be historical or social in nature

Capabilities - ANSWER-A firm's capacity to deploy resources in an integrated manner

Resources that have the potential to give a firm a sustainable competitive advantage
need to be: - ANSWER--rare
-valuable
-inimitable
-non-substitute
-tacit (understood or implied without being stated.)
-Path dependent

Key Criteria of Resources and Capabilities - ANSWER-Valuable
Rare
Inimitable(so good or unusual as to be impossible to copy; unique.)
Non-subsitute

Secondary Activities - ANSWER-Assist in the execution of primary activities
-Firm infrastructure
-HR Management
-Technology
-Procurement

Outsourcing Definition - ANSWER-Purchasing a value chain activity from an external
supplier