Term
| What are the firm-specific strengths of a company? |
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Definition
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Term
| What enables a company to earn a profit rate that is above the industry average? |
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Definition
| Valuable Distinctive Competencies |
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Term
| What do distinctive competencies of an organization arise from? |
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Definition
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Term
| What are examples of resources? |
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Definition
| Land labor, management, plants, equipment, process knowledge, intellectual property and organizational architecture. |
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Term
| When are resources likely to result in a competitive advantage? |
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Definition
| When they are valuable, rare inimitable and when the firm is organized to exploit them. |
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Term
| What are most likely to result in a sustained competitive advantage? |
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Definition
| Advanced factors of production |
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Term
| What are examples of advanced factors of production? |
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Definition
| Intellectual property, process knowledge and organizational architecture. |
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Term
| Valuable advanced resources are more likely to be what? |
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Definition
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Term
| A company needs to pursue strategies that build on its existing resources and formulate strategies that create additional resources to do what |
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Definition
| Achieve a competitive advantage |
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Term
| The amount of value a company creates is measured by what? |
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Definition
| The difference between the value consumers derive from its goods, services and the cost of creating that value. |
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Term
| A company must lower its costs or differentiate its product so that it creates more utility for consumers and can charge a higher price, or do both simultaneously to do what? |
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Definition
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Term
| What are the four building blocks of competitive advantage? |
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Definition
| Efficiency, Quality, Innovation and Responsiveness to Customers |
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Term
| What enables a company to lower its costs? |
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Definition
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Term
| What allows a company to charge a higher price and lower its costs? |
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Definition
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Term
| What lets a company charge a higher price or lower unit costs? |
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Definition
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Term
| Managers need to be able to analyze the financial performance of their company, identify strategies of the company that relate to its profitability as measured by the return on invested capital to do what? |
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Definition
| Perform a solid internal analysis |
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