Chapter 4

Conclusion

This chapter has covered a number of key issues that executives face in managing resources and ensuring their firms remain competitive. Resource-based theory argues that firms will perform better when they assemble resources that are valuable, rare, difficult to imitate, and nonsubstitutable. When executives can successfully bundle organizational resources into unique capabilities, the firm is more likely to enjoy lasting success. Different forms of intellectual property—which include patents, trademarks, copyrights, and trade secrets—may also serve as strategic resources for firms. Examining a firm’s resources can be aided by the value chain, a tool that systematically examines primary and secondary activities in the creation of a good or service and by a knowledge of supply chain management that examines the value added of multiple firms working together. While resource-based theory provides a dominant view for examining the determinants of firm success, other perspectives provide insight for understanding specific behaviors of firms within an industry. Finally, SWOT analysis is a simple but powerful technique for examining the interactions between factors internal and external to the firm.

 

Exercises

  1. Divide your class into four or eight groups, depending on the size of the class. Each group should search for a patent tied to a successful product, as well as a patent associated with a product that was not a commercial hit. Were there resources tied to the successful organization that the poor performer did not seem to attain?
  2. This chapter discussed WestJet Airlines. Based on your reading of the chapter, how well has WestJet done in bundling together the resources recommended by resource-based theory? What theoretical perspective best explains the competitive actions of most firms in the airline industry?
  3. Conduct a SWOT analysis of your college or university. Based on your analysis, what one strategic move should your school make first, and why?

 

Attributions

Figure 4.1:
Southwest 737 At Burbank by Stuart Seeger (http://en.wikipedia.org/wiki/File:Southwest_737_At_Burbank.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 4.2:
RAF-YYC (3865758102) by RAF-YYC (http://commons.wikimedia.org/wiki/File:RAF-YYC_(3865758102).jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en)

Figure 4.3:
Westjet 737 approaching Las Vegas (2412776016) by Frank Kovalchek (http://commons.wikimedia.org/wiki/File:Westjet_737_approaching_Las_Vegas_(2412776016).jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en)

Figure 4.4:
1911Handsglindemanfactory by Edward Lyman Bill (http://commons.wikimedia.org/wiki/File:1911Handsglindemanfactory.jpg) is in the Public Domain (first); 20111409-OSEC-LSC-0010 – Flickr – USDAgov by U.S. Department of Agriculture (http://commons.wikimedia.org/wiki/File:20111409-OSEC-LSC-0010_-_Flickr_-_USDAgov.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (second); Swiss Army Knife Wenger Opened 20050627 by Francis Flinch (http://commons.wikimedia.org/wiki/File:Swiss_Army_Knife_Wenger_Opened_20050627.jpg) is in the Public Domain (third)

Figure 4.6:
Beehive cake by Adventures of Pam & Frank (http://www.flickr.com/photos/adventurespf/2817730158/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Fancy cake in the Covered Market – geograph.org.uk – 724440 by ceridwen (http://commons.wikimedia.org/wiki/File:Fancy_cake_in_the_Covered_Market_-_geograph.org.uk_-_724440.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (second); Charm City Cakes by Fuzzy Gerdes (http://www.flickr.com/photos/fuzzy/3546581438/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Duff goldman by Extended Image Photography (http://commons.wikimedia.org/wiki/File:Duff_goldman.jpg) (fourth)

Figure 4.7:
Barnum & Bailey clowns and geese2 by The Strobridge Litho. Co., Cincinnati & New York (http://en.wikipedia.org/wiki/File:Barnum_%26_Bailey_clowns_and_geese2.jpg) is in the Public Domain

Figure 4.8:
Medikamente by Würfel (http://commons.wikimedia.org/wiki/File:Medikamente.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); Harlem Mickey Dz by Sam Smith (http://commons.wikimedia.org/wiki/File:Harlem_Micky_Dz.jpg) is in the Public Domain (second); The Fabs by United Press International (http://commons.wikimedia.org/wiki/File:The_Fabs.JPG) is in the Public Domain (third); KFC – Pressure-fried Chicken – Howrah 2014-03-23 9718 by Biswarup Ganguly (http://commons.wikimedia.org/wiki/File:KFC_-_Pressure-fried_Chicken_-_Howrah_2014-03-23_9718.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (fourth)

Figure 4.9:
Patent Maschinenthermometer by Sikamarketing (http://commons.wikimedia.org/wiki/File:Patent_Maschinenthermometer.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); Alexander Graham Bell by Moffett Studio (http://commons.wikimedia.org/wiki/File:Alexander_Graham_Bell.jpg) is in the Public Domain (second); Leonardo da Vinci (ur Svenska Familj-Journalen) by Svenska Familj-Journalen (http://commons.wikimedia.org/wiki/File:Leonardo_da_Vinci_(ur_Svenska_Familj-Journalen).png) is in the Public Domain (third); Lovastatin spacefill by SubDural12 (http://commons.wikimedia.org/wiki/File:Lovastatin_spacefill.png) is in the Public Domain (fourth)

Figure 4.10:
2006-02-04 Metal spiral by Roger McLassus (http://upload.wikimedia.org/wikipedia/commons/f/f3/2006-02-04_Metal_spiral.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 4.11:
Trademark-symbol by Wilinckx (http://en.wikipedia.org/wiki/File:Trademark-symbool.png) is in the Public Domain (first); 1.20.10HobokenBen&Jerry’sByLuigiNovi2 by Nightscream (http://wikimediafoundation.org/wiki/File:1.20.10HobokenBen%26Jerry%27sByLuigiNovi2.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (second); Aspirine-1923 by Unknown (http://en.wikipedia.org/wiki/File:Aspirine-1923.jpg) is in the Public Domain (third); Burberry check by Helix84 (http://en.wikipedia.org/wiki/File:Burrbery_check.gif) is in the Public Domain (fourth)

Figure 4.12:
Louboutin altadama140 by Arroser (http://wikimediafoundation.org/wiki/File:Louboutin_altadama140.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 4.13:
Clap Clapboard Blank by AgatheD (http://wikimediafoundation.org/wiki/File:Clap_Clapboard_Blank.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); Copyright by Unknown (http://en.wikipedia.org/wiki/File:Copyright.svg) is in the Public Domain (second); EdisonPhonograph by Norman Bruderhofer (http://commons.wikimedia.org/wiki/File:EdisonPhonograph.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (third); Newspaper advert copyright patent and trade mark by SasiSasi (http://en.wikipedia.org/wiki/File:Newspaper_advert_copyright_patent_and_trade_mark.jpg) is in the Public Domain (fourth); Girl with a Pearl Earring by Johannes Vermeer (http://en.wikipedia.org/wiki/File:Girl_with_a_Pearl_Earring.jpg) is in the Public Domain (fifth)

Figure 4.14:
The Doors in Copenhagen 1968 by Polfoto/Jan Persson (http://upload.wikimedia.org/wikipedia/commons/1/15/The_Doors_in_Copenhagen_1968.jpg) is in the Public Domain

Figure 4.15:
Doughnut by Angeldm (http://commons.wikimedia.org/wiki/File:Doughnut.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); US-FBI-ShadedSeal by Federal Bureau of Investigation (http://commons.wikimedia.org/wiki/File:US-FBI-ShadedSeal.svg) is in the Public Domain (second); WD-40 Smart Straw by ZooFari (http://en.wikipedia.org/wiki/File:WD-40_Smart_Straw.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (third); Zynga unleashed by ftchris (http://commons.wikimedia.org/wiki/File:Zynga_unleashed.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (fourth); Sriracha sauce by Glane23 (http://commons.wikimedia.org/wiki/File:Sriracha_sauce.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth)

Figure 4.16:
Dr. Pepper by anyjazz65 (http://www.flickr.com/photos/49024304@N00/4262262427/sizes/l/in/photostream) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 4.17:
Randy’s donuts1 edit1 by Carol M. Highsmith (http://commons.wikimedia.org/wiki/File:Randy%27s_donuts1_edit1.jpg) is in the Public Domain

Figure 4.18:
Michael Porter’s Value Chain by Denis Fadeev (http://commons.wikimedia.org/wiki/File:Michael_Porter%27s_Value_Chain.svg) used under C-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 4.19:
Air-to-air photo of a Sukhoi Superjet 100 (RA-97004) over Italy by Katsuhiko Tokunaga (http://commons.wikimedia.org/wiki/File:Air-to-air_photo_of_a_Sukhoi_Superjet_100_(RA-97004)_over_Italy.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en)

Figure 4.20:
Opening chess position from black side by MichaelMaggs (http://commons.wikimedia.org/wiki/File:Opening_chess_position_from_black_side.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

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