TEST 2 (Chapters 3, 4, and 6): STUDY GUIDE
•Know definitions and be able to recognize examples of concepts •Test will be multiple choice, 45-50 items
•Bring scantron sheet and #2 pencil
Additional free student study resources available including an interactive quiz from the publisher at: http://highered.mcgraw-hill.com/sites/0078029317/student_view0/chapter1/chapter_quiz.html
Chapter 3: Assessing the Internal Environment
•What is value chain analysis? How is it useful for understanding competitive advantages? Strategic analysis of an organization that uses value-creating activities. It is useful for understanding the building blocks of competitive advantages. •In the value chain, what are the 5 primary activities? Which 4 activities are support activities? Primary- inbound logistics, operations, outbound logistics, marketing and sales, and service. Support- general admininistration, human resource management, technology development, and procurement. •Relating to primary activities, what specific activities are associated with inbound logistics? Operations? Outbound logistics? Marketing and sales? Service? Inbound logistics- receiving, storing, and distributing inputs of a product. Operations- all activities associated with transforming inputs into the final product form. Outbound logistics- collecting, storing, and distributing the product or service to buyers. Marketing and sales- activities associated with purchases of products and services by end users and the inducements used to get them to make purchases. Service- actions associated with providing service to enhance or maintain the value of the product. •What is a Just-in-time inventory system?- were designed to achieve efficient inbound logistics. Parts and deliveries arrive only hours before they are needed. •Relating to support activities, what specific activities are associated with procurement? Technology development? HR management? General administration? Procurement- purchasing inputs used in the firm’s value chain, including raw materials, supplies, and other consumable items as well as assets such as machinery, laboratory equipment, office equipment, and buildings. Technology development- development of new knowledge that is applied to the firm’s operations. HR management- activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. General administration- general management, planning, finance, accounting, legal and government affairs, quality management, and information systems: activities that support the entire value chain and not individual activities. •How has Walgreen’s used information systems to be a sources of competitive advantage? Introduction of a computer based prescription management system- automates telephone refills, store to store prescription transfers, and drug reordering. Also provides information on drug interactions and frees up pharmacists from administrative tasks to devote more time to patient counseling. •What are the two levels of interrelationships among value-chain activities? 1.Interrelationships among activities within the firm
2.Interrelationships among activities within the firm and other stakeholders. •What is resource-based view of the firm?
Perceptions that firms’ competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute. •What are the 3 types of firm resources?
Tangible, Intangible, and Organizational Capabilities.
•What are the 4 kinds of tangible resources?
Financial, physical, technological, and organizational.
•What are the 3 kinds of intangible resources,
Human, Innovation and Creativity, and Reputation.
•What examples of organizational capabilities?
Ex. Outstanding customer service. Excellent product development capabilities, innovativeness of products and services. Ability to hire, motivate,...