301 final exam review
Review Sheet for Final
Spring 2014 BMGT 301
Chapters 2, 6, 7, 9, 10, 11, and 13
Dr. Karake
Chapter 2 – Strategy & Technology
Differentiate between operational effectiveness and strategic positioning
Operational Effectiveness – Performing the same tasks better than rivals perform them
Strategic Positioning – Performing different tasks than rivals, or the same tasks in a different way
Differentiate between competitive advantage and sustainable competitive advantage
Competitive advantage – An advantage that a firm has over its competitors
Sustainable competitive advantage – Financial performance that consistently outperforms industry average
Understand the resource view of the firm concept
Resource view – If a firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics.
Valuable
Rare
Imperfectly imitable
Nonsubstitutable
Resources for competitive advantage
Imitation Resistant Value Chain - A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role
Inbound logistics
Operations
Outbound Logistics
Marketing and sales
Support
Firm infrastructure
HR management
Technology / research and development
Procurement
Brand – symbolic embodiment of all the information connected with a product or service
Scale advantages – advantages related to size
Switching costs – The cost a consumer incurs when moving from one product to another. It can involve actually money spent as well as investments in time, any data loss, and so forth
Learning costs
Information and data
Financial commitment
Contractual commitments
Search costs
Loyalty programs
Differentiation – Showcases the difference between products.
Network Effects – Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands
Distribution channels – The path through which products or services get
Spring 2014 BMGT 301
Chapters 2, 6, 7, 9, 10, 11, and 13
Dr. Karake
Chapter 2 – Strategy & Technology
Differentiate between operational effectiveness and strategic positioning
Operational Effectiveness – Performing the same tasks better than rivals perform them
Strategic Positioning – Performing different tasks than rivals, or the same tasks in a different way
Differentiate between competitive advantage and sustainable competitive advantage
Competitive advantage – An advantage that a firm has over its competitors
Sustainable competitive advantage – Financial performance that consistently outperforms industry average
Understand the resource view of the firm concept
Resource view – If a firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics.
Valuable
Rare
Imperfectly imitable
Nonsubstitutable
Resources for competitive advantage
Imitation Resistant Value Chain - A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role
Inbound logistics
Operations
Outbound Logistics
Marketing and sales
Support
Firm infrastructure
HR management
Technology / research and development
Procurement
Brand – symbolic embodiment of all the information connected with a product or service
Scale advantages – advantages related to size
Switching costs – The cost a consumer incurs when moving from one product to another. It can involve actually money spent as well as investments in time, any data loss, and so forth
Learning costs
Information and data
Financial commitment
Contractual commitments
Search costs
Loyalty programs
Differentiation – Showcases the difference between products.
Network Effects – Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands
Distribution channels – The path through which products or services get
Links: Declining Communication Costs and the Internet An estimated 2.5 billion people worldwide have Internet access (March 2014)