French and raven examined the effect of power derived

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French and Raven examined the effect of power derived from the various bases of attraction (the recipient's sentiment towards the agent who uses power) and resistance to the use of power. They conclude that the use of power from the various bases has different consequences. For example, coercive power typically decreases attraction and causes high resistance, whereas reward power increases attraction and creates minimal levels of resistance. French and Raven also concluded that "the more legitimate the coercion [is perceived to be], the less it will produce resistance and decreased attention". Jay Barney: Looking Inside for a Competitive Advantage A theory of sustained competitive advantage BARNEY’S KEY CONCPETS: Sustained competitive advantage: •Valuable resources and capabilities •Rare resources and capabilities •Hard to i mitate resources and capabilities •Resources and capabilities organized to be exploited -Barney says there are a lot of tools to focus on a company like SWOT. Downloaded by shayne cannell-cohen ([email protected]) lOMoARcPSD|2347638
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-Socially complex resources are organizational phenomena like reputation, trust, friendship, teamwork and culture. -Sustained competitive advantage cannot be created simply by evaluating environmental opportunities and threats, and then conducting business only in high-opportunity, low-threat environments. Rather, creating sustained competitive advantage depends on the unique resources and capabilities that a firm brings to competition in its environment. BARNEY’S MAJOR CLAIMS: - The most careful and complete analysis of firms’ competitive environments cannot, by itself, explain their success - S trategists also need to analyze the competitive implications of firms’ internal strengths and weaknesses. - Financial, physical, human, organizational assets used by the firm to develop, manufacture and deliver products and services to its customers. A F irm’s Resources and Capabilities - Financial: debt, equity, retained earnings, etc… - Physical: machines, manufacturing facilities, buildings. - Human: experience, knowledge, judgment, wisdom, etc… - Organizational: history, relationships, trust, culture, formal reporting structure. FOUR IMPORTANT QUESTIONS ABOUT RESOURCES AND CAPABILITIES ( VRIO ): QUESITON OF VALUE : Does firms resources and capabilities enable it to exploit opportunities and/or neutralize threats? - Sony’s and 3M’s resources -including their specific technological skills and their creative organization cultures- made it possible for these firms to respond to, and even create, new environmental opportunities. - Changes in a firm’s environment may reduce the value of a firm’s resources in their current use, while leaving the value of those resources in other uses unchanged.
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  • Fall '08
  • Islam
  • Management, shayne cannell-cohen

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