Chapter 4 Vocab - Global Business

A leading perspective of strategy that suggests that differences in firm performance are most fundamentally driven by differences in firm resources and capabilities.

The tangible and intangible assets a firm uses to choose and implement its strategies.

A firm's capacity to build and protect competitive advantage, including the ability to sense and seize opportunities and to reconfigure existing assets.

The tangible and intangible assets a firm uses to choose and implement its strategies.

Observable and quantifiable resources and capabilities.

Hard-to-observe and difficult-to-codify resources and capabilities.

Abilities to discover opportunities.

Abilities to capture value from opportunities.

Abilities to remain flexible by redesigning business models, realigning assets, and revamping routines.

Goods and services produced through a chain of vertical activities that add value.

Examination as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.

A process of market competition through which unique products that command high prices and high margins generally lose their ability to do so—these products thus become "commodities."

Turning over all or part of an activity to an outside supplier to improve the performance of the focal firm.

International/foreign outsourcing.

Outsourcing to a domestic firm.

Setting up subsidiaries to perform in-house work in foreign location. Conceptually identical to foreign direct investment (FDI).

A resource-based framework that focuses on the value (V), rarity (R), imitability (I), and organizational (O) aspects of resources and capabilities.

The difficulty of identifying the causal determinants of successful firm performance.

Noncore asset that complements and supports the value-adding activities of core assets.

The socially complex ways of organizing typical of many firms.

Outsourcing of business processes such as loan origination, credit card processing, and call center operations.

A firm that executes design blueprints provided by other firms and manufactures such products.

A firm that both designs and manufactures products.

A firm that designs, manufactures, and markets branded products.

Moving formerly offshored activities back to the home country of the focal firm.

Managers need to build firm strengths based on the VRIO framework. ● Relentless imitation or benchmarking, while important, is not likely to be a successful strategy. ● Managers need to build up resources and capabilities for future competition. ● Develop your career to make yourself into an "untouchable" whose job cannot be easily outsourced.

3 dimensional products from a digital model by using additive processes, where products are created by adding successive layers of material.

decision about whether to produce in-house ("make") or to outsource ("buy").

smart combination of manufacturing and services