Internal Analysis - MGT 4090 Week 4 Session 1

These flashcards cover key concepts from Week 4 Session 1 of MGT 4090, focusing on internal analysis and dynamic capabilities.

Dynamic Capabilities

A firm’s ability to adapt resources over time and modify, leverage, and upgrade them to create a long-term competitive advantage.

VRIO Framework

A tool used to evaluate a firm's resources and capabilities based on four criteria: Value, Rarity, Imitability, and Organization.

Sensing

The step in dynamic capabilities involving the identification and evaluation of opportunities.

Seizing

The process of mobilizing and deploying resources to take advantage of identified opportunities.

Transforming

The phase of dynamic capabilities that includes product and process innovation and knowledge management.

Competitive Advantage

The attribute that allows a firm to outperform its rivals, usually derived from unique resources or capabilities.

Core Competency

A defining capability or advantage that distinguishes an enterprise from its competitors.

Resource Stocks

The firm’s current level of intangible resources, including assets and capabilities.

Resource Flows

The level of investments made by the firm to maintain or build its resources.

Dr. Dre’s Core Competency

An example discussed in class that illustrates the importance of unique strengths in achieving a competitive advantage. Using Intangible resources to show that it is indeed worth seizing if it fits the company's strategy

Leakage

Refers to the loss of valuable resources or capabilities due to inefficiencies or mismanagement within the firm. (An executive or key personal leaving a firm)

Forgetting

The process by which a firm loses its accumulated knowledge or capabilities over time, often due to lack of use or change in personnel. (Resources go under utilized for prolonged period of time)