Rolex and timex exploit very different valuable

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-Rolex and Timex exploit very different valuable resources. Rolex emphasises on quality and a high-status reputation while Timex emphasises on high-volume and low-costs. QUESTION OF RARITY : How many competing firms already possess these valuables resources and capabilities? - If a firm’s resources are valuable and rare, those resources may enable a firm to gain at least a temporary competitive advantage. -Wal-Mart gained a competitive advantage over K-Mart because of their Just-on-Time principle to control inventory. This point-of-purchase inventory control system was rare. QUESTION OF IMITABILITY : Do firms without resources or capability face a cost disadvantage in obtaining it compared to firms that already possess it? -Imitation can occur either through substitution or duplication -If these substitution resources have the same strategic implications and are no more costly to develop, then imitation through substitution will lead to competitive parity in the long-run. -History Downloaded by shayne cannell-cohen ([email protected]) lOMoARcPSD|2347638
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- Small decisions - Socially complex resources (reputation, trust, friendship, teamwork, culture) QUESTION OF ORGANIZATION : Is a firm organized to exploit the full competitive potential of its resources and capabilities? (Rolex v. Timex) - Wal- Mart’s continuing competitive advantage in the discount retailing industry can be attributed to its early entry into rural markets in the US. Not valuable Competitive Disadvantage Valuable, but not rare Comparative equality Valuable and Rare Competitive advantage Valuable, Rare, but not costly to imitate Temporary competitive advantage Valuable, rare, and costly to imitate Sustained competitive advantage Frederick Herzberg: One More Time: How do you Motivate Employees? Herzberg’s concepts: Motivating with KITA: 1. Negative KITA: fear of what will happen if something is not done. Will never lead to motivation. -Negative physical KITA-> It is a physical attack; it directly stimulates the autonomic nervous system and usually leads to negative feedback from employees. -Negative psychological KITA-> This has more advantages over physical KITA because the cruelty is not visible (the hurting is internal). Those who use this type of KITA like managers receive ego satisfaction. If the employee complains, he or she can be accused of being paranoid because there is no tangible evidence of an attack. 2 . Positive KITA: rewards, incentives, seduction to get and employee to “move” or “jump”. “Do this f or me or the company, and in return I will give you a reward, an incentive, more status, a promotion, all the quid pro quos that exist in the industrial organization” **KITA is NOT motivation because we are kicking our employees each time to do something.
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  • Fall '08
  • Islam
  • Management, shayne cannell-cohen

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