BUS 800 Chapter 3: BUS 800 – Chapter 3 - Resource and Capabilities
Document Summary
Bus 800 chapter 3: resource and capabilities. Internal environment the relationship between strategy and the firm"s resources and capabilities. Tangible: financial (cash, securities, borrowing capacity, physical (plant, equipment, land, mineral reserves) Intangible: technology (patents, copyrights, trade secrets, reputation (brands, relationships, culture. Human: skills/know-how, capacity for communication and collaboration, motivation. Human resources competency modelling involves identifying the set of skills, content knowledge, attitudes and values associated with superior performers within a particular job category, then assessing each employee against that profile. Profitability: return on equity, return on assets, return on capital, profit margin. Operation measures: return on units sold, same-store sales, r&d expense, general. Leverage: debt/equity, interest coverage admin expense, marketing expense. Organizational capability firms capacity to deploy resources for a desired end results. Establishing a competitive advantage: two conditions must be present: scarcity and relevance. Sustaining a competitive advantage: durability, transferability, and replicability. Appropriate the returns to that competitive advantage: property rights, relative bargaining power, and embeddedness.
