Elaborate on the dynamic capabilities perspective of competitive advantage.
What will be an ideal response?
In the dynamic capabilities perspective, competitive advantage is the outflow of a firm's capacity to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment. Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, dynamic markets today are the rule rather than the exception. As a response, a firm may create, deploy, modify, reconfigure, or upgrade resources so as to provide value to customers and/or lower costs in a dynamic environment. The essence of this perspective is that competitive advantage is not derived from static resource or market advantages, but from a dynamic reconfiguration of a firm's resource base.
For a firm to sustain advantage, any fit between its internal strengths and the external environment must be dynamic. That is, the firm must be able to change its resource base as the external environment changes. The goal should be to develop resources, capabilities, and competencies that create a strategic fit with the firm's environment. Rather than creating a static fit, the firm's internal strengths should change with its external environment in a dynamic fashion.
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What is the best way to remedy a problem in which employees do not recognize that their manager is ethical or there is a manger who does not realize he or she is acting unethically?
a. Create an employee feedback system for ethical perceptions or issues. b. Change the ethics culture of the organization. c. Explain to employees that it is up to them to lead by example. d. Highlight the work of executive leadership when it is of high moral character.
Which heuristics lead us to base decisions on the first piece of information and then adjust it?
a. Availability b. Confirmation c. Representativeness d. Anchoring and adjustment
In a(n) ________ review system, orders are placed at a constant time interval, but in a(n) ________ review system, a constant order is placed at a variable time level
Fill in the blank(s) with the appropriate word(s).
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Inc.Los Angeles DivisionBay Area Division Central Valley DivisionRevenues$750,000 $200,000 $235,000 $325,000 Variable operating expenses 410,000 110,000 120,000 180,000 Controllable fixed expenses 120,000 65,000 75,000 70,000 Noncontrollable fixed expenses 60,000 15,000 20,000 25,000 In addition, the company incurred common fixed costs of $18,000Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increased by $50,000. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is:
A. $12,500. B. $50,000. C. $22,500. D. $32,500. E. $60,000.