RBV
What does RBV stand for?
Resource-Based View
What does the V in VRIO stand for?
Value
What is the main purpose of value chain analysis?
To identify how a company creates value through its activities.
What is the difference between a strategy and a plan?
Strategy is the overall direction/approach; a plan outlines the specific actions and steps.
According to RBV, does competitive advantage mainly come from external opportunities or from the firm's internal resources and capabilities?
Internal resources and capabilities
What does the R in VRIO stand for?
Rarity
Which value chain activity involves receiving, storing and managing raw materials?
Inbound logistics
Which level of strategy focuses on the overall direction of the entire organisation?
Corporate strategy
Give one example of a tangible resource a company might possess.
Factories, machinery, buildings, vehicles, cash, etc.
If a resource is valuable but every competitor has the same resource, is it rare?
No
Manufacturing a product would fall under which primary value chain activity?
Operations
Which level focuses on how a particular business unit competes in its market?
Business-level strategy
A company's strong brand reputation is difficult for competitors to copy. Which type of resource is this?
An intangible resource
Why is "I" important in VRIO?
It asks whether competitors can easily imitate/copy the resource or capability.
Advertising and selling a product fall mainly under which value chain activity?
Marketing & sales
Marketing, HR and finance strategies are examples of which level?
Functional strategy
A company has a valuable, rare, difficult-to-copy resource and is well organised to exploit it. What does VRIO suggest?
Sustained competitive advantage
A company has a valuable and rare resource, but it is not organised to use it effectively. Can it fully capture the resource's potential?
No
A company improves its customer service by introducing a 24/7 support team. Which primary value chain activity is most directly affected?
Service
A company decides to enter a completely new industry by acquiring another business. Which level of strategy is this mainly concerned with?
Corporate Strategy