Chapter 4Internal Analysis: Resources, Capabilities, and Core Competencies K
Resources fall into two categories:
Tangible Intangible
Resource stocks
a firm level of intangible resources
what makes up core compentencies
Activities capabilities Resources
support Activities in value chain
Adds value indirectly necessary to sustain primary activity ( financing, HR, R&D etc....)
Resources
Any assets that a firm can use
Activities
Distinct and fine-grained business processes
External SWOT Analysis
Opportunities Threats
Capabilities
Organizational and managerial skills
Two Critical Assumptions of the RBV
Resource are Heterogeneity and immobility
Internal SWOT Analysis
Strengths Weaknesses
Resource Heterogeneity
a combination of resources and capabilities that;s different from other companies
Resources flows
a firm level of investment to maintain Ir resource
What is the Resource Based View (RBV)?
a model that see resource as the key reason for superior performance. Valuable. Rare. Costly to Imitate. Organized to Capture Value.
core rigidity
a ore competency that has been change to liability due to environmental changes
Resource immobility
a resource that hard to move from one company to another. hard to copy
Primary Activities in value chain
adds value directly transforms inputs into output while moving horizontal in a companry
A Resource is Valuable If...
can be use to exploit opportunity offset threats create economic value (value is greater than cost)
A Resource is Rare If...
can only be use by one compnay
A Resource Is Costly to Imitate If...
can't develop or buy at a reasonable cost
The Dynamic Capabilities Perspective
emphasize the firm ability to change and use it resource to sustain competitive advantage when the environment changes
What Is the Value Chain?
internal activities that a company is engaged i while chaning inputs into outpus
Dynamic Capabilities
is a firm ability to Create, deploy, modify, reconfigure, upgrade, and leverage its resources over time (IBM) helps prevent core rigidity
A Resource Is Organized to Capture Value If...
it has an effective organization structure and coordinating system
SWOT Analysis
managers to uses informaitons obtained from an internal and external analysis to derive strategic implications
Isolating Mechanisms
prevent imitation Protect resources, capabilities, or competencies that underlie a firm's competitive advantage
How is value added in a value chain
primary activity directly add value while the support add value indirectly
What Are Core Competencies?
unique strength in organization that makes it different from other companies
How to Generate Additional Insights
use SWOT analysis ( internal and external analysis)