1. Why is it important for a firm to study and understand its internal organization?

Part 1:

1. Why is it important for a firm to study and understand its internal organization?

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Internal organization refers to the manner in which a firm is structured to conduct its various activities. It entails the decision making mechanisms, information management process and the goals and objectives of the enterprise. It is indeed important for a firm to study and understand it is internal organization for a number of reasons. First and foremost, understanding the…

2. What is value? Why is it critical for the firm to create value? How does it do so?

Value refers to the fair return on money, services or goods following a given form of investment. The core objective of any firm is to make profit by offering a good or service that is value to the customers. If….

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

Tangible resources are physical in nature and may include vehicles, buildings, equipment, inventory and cash. On the other hand, intangible resources do not exist in physical form and….

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

5. What four criteria must capabilities satisfy for them to become core competencies? Why is it important for firms to use these criteria to evaluate their capabilities value-creating potential?

6. What is value chain analysis? What does the firm gain by successfully using this tool?

7. What is outsourcing? Why do firms outsource? Will outsourcing’s importance grow in the future? If so why?

8. How do firms identify internal strengths and weaknesses? Why is it vital that managers have a clear understanding of their firms strengths and weaknesses?

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

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