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Chapter 3

1. The document discusses internal organization and resources, capabilities, core competencies, and value chain analysis. It provides definitions and explanations of key concepts. 2. Zara is used as a case study example. It has capabilities in its supply chain that are difficult for competitors to imitate, allowing it to deliver customized fashion orders to stores within 24 hours. 3. Zara creates value for its customers through fast fashion that draws customer interest and large social media followings. Its unique set of integrated capabilities allow it to effectively pursue an online strategy relative to competitors.

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Mariya Bhaves
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Download as DOC, PDF, TXT or read online on Scribd
64 views

Chapter 3

1. The document discusses internal organization and resources, capabilities, core competencies, and value chain analysis. It provides definitions and explanations of key concepts. 2. Zara is used as a case study example. It has capabilities in its supply chain that are difficult for competitors to imitate, allowing it to deliver customized fashion orders to stores within 24 hours. 3. Zara creates value for its customers through fast fashion that draws customer interest and large social media followings. Its unique set of integrated capabilities allow it to effectively pursue an online strategy relative to competitors.

Uploaded by

Mariya Bhaves
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Abiad Anthony M.

BSBA/Human Resources

Review question..

1.Why is the important for a firm to study and understand its internal organixation ?

* One of the conditions associated with analyzing a firm internal organization is the reality that in today
global economy. Some of the reasource that were traditionality critical to firms effort to produce, sell
and distribute their goods or services , such as labor coasts, access to financial resources and raw
materials , and protected or regulated market although sgill important , are now likely to be sources of
competitive advantages.

2.what is values ? Why is crutical for the firm to create value? How does it do so?

-Value is measured by a product's performance characteristic and by its attributes foe which customers
are willing to pay firms to create values by innovatively bundling and leveraging their resources to form
capabilities and core competencies. Firms with competative advantage create more values for
customers that do competitors.

3.What are the differences between tangible and intangible resources? Why is it important for decision
makers to understand these differences? Are tanginble resources more valauble for creating capabilities
than are intangible resources, or is the reverse true ? Why?

*tangible resources - are assets that can be observed and qualified.

*Intangible resources- are assets that are rooted deeply in the firms history, accumulate overtime, and
are relatively difficult for competitors to analyze and imitate.

*Because they are embedded in unique pattern of routines, intangible resources , are dificult for
competitors to analyze and imitate.

4.What are capabilities ? How do firms create capabilities ?

*Capabilities are used to complete the organizational tanks required to produces , distribute , and
service the goods or services the firm provides to customer for the purpose of creating value for them.

*As illustrated in table 3.3 capabilities are often developed in specific functional areas (such as
manufacturing, R&D , and marketing) or in part of a functional area.

5.What four criteria mjst capabilities satisfy for them to become core competences ? Why is the
important for firms to use these criteria to evaluate their capabilities and value creating potencial?

1. Valuable capabilities -allow the firms to exploit opportunities or neutralize threats in its external
environment.
2. Rare capablities -Are capabilities that few , if any , competitors poses.

3. Costly to imitate -are capabilities that other firms cannot easily develop capablities that are costly
imitate are created because of one reason or combination of there reasons.

4.Non-subtitute Capabilities -Are capabilities that do not have strategic equivalent.

6. What is value chain analysis ? What does the firms gain by succesfully equivalent?

*Value chain activities or tasks the firm completers in order to produce product and then sell,
distribute, and service those product in way that create values for customers .

7.What is outsourcing ? Why do firms outsources ? Will outsourcing , important grow in the future ? If so
, why ?

*out sourcing is the purchase of a value -creating activitu or support function activity form an external
supplier .

* firms engaging outsourcing increase their flexibility , mitigate risk, and reduce their capital
investments.

*outsourcing can be effective because few , if any. Organization posses the reasources and capabilities
required to archieved competative superiority in each value chain activity and support function.

8.How do firms identify internal strengths and weakness? why is it vital that manager have a clear
understanding of their firms strenght and weakness?

*By analyzinng the internal orgnization, firms identify their strength and wrakness as reflected by their
resource, capabilities , and core competences, if the firms are weak capablities or does oinot have core
competencies in areas required and build the needed capabilities and competencies.

9. What are core registries ? What does it means to say that each core competences could become a
core rigidities ?

*Flip a side of core competencies , and caused by overreliance on any advantages for too long. While
succesful firm management relaxes its improvement efforts , other keep on getting better and absolute
its competitive advantage.

*Core compentences are capablities that serve as a source of competitive advantage of a firm over its
rivals .

Case Dicussion questions:

1. What influences from the environment over the next several year do you think might affect the way
Zara competes?
*Although the influence of the economic environment (an influence from the external environment
that we examined in chapter 2) affects Zara's success, the way Zara use its resources and capabilities as
the foundation of the core competencies demonstrates the values of understanding a firms internal org.

2. How easy or difficult do you think it would be for competitors to imitate Zara's supply chain as a
capability?

*Zara's supply chain is also managed much more efficiently than those other companies.

3. Is getting products to customers as quickly as possible an outcomes that you believes would create
values which industries in addition of clothing? If so, which industries and why?

*Zara already has a large supply of basic clothing and own its own dyeing operation to maintain control
and speed, Zara's objectives is to deliver customized orders to every store in its empire with 24hrs.

4. What values does Zara's create for its customers?

*The fashion draws the interest of customers and create a huge number of following on Facebook,
approximately 10million followers.

5. As you study how Zara competes and the capabilities it uses to do so, are these areas of the firms
operations you believe might be candidates for outsourcing? If so, what area and why might those
outsourced in the future?

*This create a stronger potential for Zara to pursue an online strategy relative to its competitors.

*The company has a unique set of capabilities that fit together well as it manages activites to produce
"fast fashion", which creates demands from their customers and loyalty from their partner suppliers.

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