Using Strategic Activity Systems a Competitor Can Observe 25 Activities

question 37

Multiple Choice

Using strategic activity systems a competitor can observe 25 activities of Firm A If Firm B decides to imitate Firm A with a 90% accuracy rate, the probability of copying the whole system of 25 activities yields only a 7% accuracy rate.Which framework below is most effective at demonstrating the difficulty of imitating a firm with 25 interconnected activities?

• A) Strategic activity system
• B) VRIO framework
• C) Value chain analysis
• D) SWOT analysis

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Definitions:

Purchasing Group

A consortium of buyers who pool their resources to buy goods or services collectively, typically to obtain lower prices.

Medical Practices

The professional activities and standards related to the prevention, diagnosis, and treatment of diseases, managed by health professionals.

Balance Theory

According to Heider, people prefer attitudes that are consistent with each other over those that are inconsistent. A person (P) tries to maintain consistency in attitudes to, and relationships with, other people (O) and elements of the environment (X).

Cognitions

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.