Chapter 3 - Resources & Capabilities

Question 1

What is the critic of Porter’s five forces?

Answer 1

Doesn’t look into strategic capabilities.

A company might be able to produce at a lower cost, or offer a more attractive product. This is not highlighted in Porter’s model.

Question 2

What is a culture? And on what levels can it exist in a company?

Answer 2

A set of representations, symbols, values, that are shared by the members of a community.

Micro-level: the individual (CEO, founder), personal values etc. that are transmitted to the organisation.

Intermediary (organisational level): firm trajectory, structure, values

Macro-level: Sector, industry, region, country

Question 3

What are the characteristics of culture?

Answer 3

it is shared, global, evolving, transmissible, and individual resistant.

Question 4

What are the roles of culture?

Answer 4

It is used to maintain/build cohesion, recruitment, integration & sense making

Question 5

What are the primary activities of the value chain?

Answer 5

internal logistics, production, external logistics, marketing & sales, and services … this is making up the margin of the product which is the added value - costs

Question 6

What are the conditions for a sustainable competitive advantage?

Answer 6

VRIST

Valuable,
rare,
non imitable
non substitutable
non transferable