Business Policy Chapter 5-8 Essay

886 Words Apr 7th, 2013 4 Pages
Chapter 5
DISCUSSION QUESTIONS What is the relevance of the resource-based view of the firm to strategic management in a global environment? it permits the organization to be seen as a whole

In doing so, the strengths and weaknesses within the firm can be examined. This is done because as stated in the Hunger & Wheelen (2006, 106) text, "scanning and analyzing the external environment for opportunities and threats is not enough to provide an organization a competitive advantage."

five-step, resource-based approach to strategy analysis:
1) Identify and classify the firm's resources in terms of strengths and weaknesses.
2) Combine the firm's strengths into specific capabilities and core competencies.
3) Appraise the profit
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This is what we do. This is what we stand for.”: Strength: gives company a since of pride and solid code it will abide by. Weakness: Trends may interfere with “company way” and profit may be low.
Cultural intensity is the degree to which members of a unit accept the norms, values, or other culture con- tent associated with the unit. This shows the culture’s depth. Organizations with strong norms promoting a particular value, have intensive cultures, whereas new firms (or those in transition) have weaker, less intensive cultures.
Cultural integration is the extent to which units throughout an organization share a common culture. This is the culture’s breadth. Organizations with a pervasive dominant culture may be hierarchically controlled and power-oriented, such as a military unit, and have highly inte- grated cultures. All employees tend to hold the same cultural values and norms.
What are the pros and cons of management’s using the experience curve to determine strategy?
- The experience curve suggests that unit production costs decline by some fixed percentage (commonly 20%–30%) each time the total accumulated volume of production in units doubles. The actual percentage varies by industry and is based on many variables: the amount of time it takes a person to learn a new task, scale economies, product and process improvements, and lower raw materials cost, among others
- CON: The experience curve of the

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