33:620:301 Lecture Notes - Lecture 3: Swot Analysis, Value Chain, Intellectual Capital
23 Feb 2019
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Document Summary
Various analytic tools have been developed to look at the internal environment of a company: Resource- input or asset that is owned or controlled by the firm. Tangible resources- can be touched or quantified easily. Intangible resources- human assets, intellectual capital, anything that isn"t physical. Capability- capacity of the firm to perform internal activity competently. Together, they are the basis on which a firm competes against rivals. The competitive power of a resource or capability is measured by how many of 4 tests it can pass: Passing all 4 tests can provide the firm with a sustainable competitive advantage. A company"s value chain identifies the primary activities that create customer value. Support activities facilitate the performance of the primary activities. The value chain helps identify the ways value is created for the customer. Deep look at the firm"s cost structure and ability to offer low prices.
