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)