24415 Lecture Notes - Lecture 6: Customer Relationship Management, Resource-Based View, Efficient-Market Hypothesis
Document Summary
Resources and capabilities = primary drivers of sca & economic performance. Tells us what we can change, not how to structure change. Tells us which industries we should invest in (but not a good indicator) Market efficiency = cant make profits if you pay for what its worth. More important to explain how profitability is made within an industry. Best estimate of value = npv (discounted cash flows to value companies) Used to estimate profits of the firm in the future. Stock markets react instantly to release of new info (buying is based on luck) Resource = anything firm owns or controls (tangible/intangible) Capabilities = skills in coordinating resources/productive (competencies) Dynamic capabilities = recombination of resources into new sources of ca. Core competencies = capabilities fundamental to firm performance. To produce sca, the capabilties/resources must be vrio. Value = increase efficiency (new it system) or effectiveness (new store) Rare = sets companies apart from each other.
