Business Policy Chapter 5-8 Essay

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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…show more content…
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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