BMGT301 FINAL EXAM VERIFIED STUDY GUIDE
Operational Effectiveness - Answers - Performing the same tasks better than rivals
perform them. Lower Cost
Strategic Positioning - Answers - Performing different tasks than rivals or the same
tasks i a different way. Higher value/revenue
Competitive Advantage - Answers - the ability of a firm to outperform its competitors in
financial measures
Sustainable Competitive Advantage - Answers - Financial performance that consistently
outperforms industry averages
True Sustainable Advantage - Answers - Comes from assets (resources with
capabilities) and business model that are simultaneously. (Resource-based Theory)
Valuable, Rare, Difficult to imitate, and For which there are no substitutes.
Imitation-resistant Value Chain - Answers - One that is tough for rivals to copy that
yields similar benefits; allows firm to have critical competitive asset
Resources for Competitive Advantage - Answers - -Imitation-resistant value chains:
others find hard to replicate
-Brand: Proxy for quality and inspires trust
-Scale: advantages related to size; economies of scale
-Switching costs and Data: Costs consumer incur by switching providers
-Differentiation: Be different; move away from being commoditized
-Network Effects: when the value of a product or service increases as its numbers of
users expands
-Distribution Channels: the path through which products or services get to customers
-Patents
Switching Costs - Answers - it is more expensive to gain a customer than to keep one-
create low churn
Differentiation - Answers - Distinguishing yourself among other products. Move away
from being commoditized
Network Effects - Answers - when the value of a product or service increases as its
numbers of users expands (Metcalfe's Law)
Value Chain Model - Answers - Highlights the primary or support activities that add a
margin of value to a firms products or services; where information systems can be best
applied, and achieve a competitive advantage. (inward looking)
, Inbound Logistics - Answers - A primary activity in the value chain pertaining to raw
material handling and warehousing - how to move raw materials from suppliers to
warehouses
Operations - Answers - A primary activity in the value chain pertaining to machining,
assembling, testing
Outbound Logistics - Answers - A primary activity in the value chain pertaining to
warehousing and distribution of finished product
Marketing and Sales - Answers - A primary activity in the value chain pertaining to
advertising, promotion, pricing, channel relations
Service - Answers - A primary activity in the value chain pertaining to installation, repair,
parts
Firm Infrastructure - Answers - A support activity in the value chain pertaining to a firms
general management
Human Resources Management - Answers - A support activity in the value chain
pertaining to a firms recruiting, training, development of employees
Technology Department - Answers - A support activity in the value chain pertaining to
R&D, product and process improvement
Procurement - Answers - A support activity in the value chain pertaining to purchasing
of new materials, machines, and supplies - comes before inbound logistics - sourcing -
identify sources for your input
Competitive Forces Model - Answers - looks at the firm as a player in its external
environment (outward looking) among its competitors, suppliers, customers, regulatory
agencies, legal system, etc.
Competitive forces model - Answers - 1. Intensity of rivalry among current competitors
2) Threat of new entrants
3) Threat of substitute goods/services
4) Bargaining power of buyers
5) Bargaining power of suppliers
Netflix - Answers - -the cue (founded in 1997 after Founder got a late fee for his
borrowed Blockbuster DVDs)
-the rating (average customer rates 200 movies every year)
-Cinematch (data about consumer behavior and the rankings)
Netflix's Success - Answers - -Netflix leverages data through Cinematch to create a
sustainable competitive advantage
Operational Effectiveness - Answers - Performing the same tasks better than rivals
perform them. Lower Cost
Strategic Positioning - Answers - Performing different tasks than rivals or the same
tasks i a different way. Higher value/revenue
Competitive Advantage - Answers - the ability of a firm to outperform its competitors in
financial measures
Sustainable Competitive Advantage - Answers - Financial performance that consistently
outperforms industry averages
True Sustainable Advantage - Answers - Comes from assets (resources with
capabilities) and business model that are simultaneously. (Resource-based Theory)
Valuable, Rare, Difficult to imitate, and For which there are no substitutes.
Imitation-resistant Value Chain - Answers - One that is tough for rivals to copy that
yields similar benefits; allows firm to have critical competitive asset
Resources for Competitive Advantage - Answers - -Imitation-resistant value chains:
others find hard to replicate
-Brand: Proxy for quality and inspires trust
-Scale: advantages related to size; economies of scale
-Switching costs and Data: Costs consumer incur by switching providers
-Differentiation: Be different; move away from being commoditized
-Network Effects: when the value of a product or service increases as its numbers of
users expands
-Distribution Channels: the path through which products or services get to customers
-Patents
Switching Costs - Answers - it is more expensive to gain a customer than to keep one-
create low churn
Differentiation - Answers - Distinguishing yourself among other products. Move away
from being commoditized
Network Effects - Answers - when the value of a product or service increases as its
numbers of users expands (Metcalfe's Law)
Value Chain Model - Answers - Highlights the primary or support activities that add a
margin of value to a firms products or services; where information systems can be best
applied, and achieve a competitive advantage. (inward looking)
, Inbound Logistics - Answers - A primary activity in the value chain pertaining to raw
material handling and warehousing - how to move raw materials from suppliers to
warehouses
Operations - Answers - A primary activity in the value chain pertaining to machining,
assembling, testing
Outbound Logistics - Answers - A primary activity in the value chain pertaining to
warehousing and distribution of finished product
Marketing and Sales - Answers - A primary activity in the value chain pertaining to
advertising, promotion, pricing, channel relations
Service - Answers - A primary activity in the value chain pertaining to installation, repair,
parts
Firm Infrastructure - Answers - A support activity in the value chain pertaining to a firms
general management
Human Resources Management - Answers - A support activity in the value chain
pertaining to a firms recruiting, training, development of employees
Technology Department - Answers - A support activity in the value chain pertaining to
R&D, product and process improvement
Procurement - Answers - A support activity in the value chain pertaining to purchasing
of new materials, machines, and supplies - comes before inbound logistics - sourcing -
identify sources for your input
Competitive Forces Model - Answers - looks at the firm as a player in its external
environment (outward looking) among its competitors, suppliers, customers, regulatory
agencies, legal system, etc.
Competitive forces model - Answers - 1. Intensity of rivalry among current competitors
2) Threat of new entrants
3) Threat of substitute goods/services
4) Bargaining power of buyers
5) Bargaining power of suppliers
Netflix - Answers - -the cue (founded in 1997 after Founder got a late fee for his
borrowed Blockbuster DVDs)
-the rating (average customer rates 200 movies every year)
-Cinematch (data about consumer behavior and the rankings)
Netflix's Success - Answers - -Netflix leverages data through Cinematch to create a
sustainable competitive advantage
