5 - Strategic capability and competencies

Question 1

Define organisational capability

Answer 1

Potential to achieve an outcome

Question 2

Define organisational competence

Answer 2

The ability to apply and utilise a capability to perform required activities

Question 3

Explain how strategic capabilities are both common and unique

Answer 3

Common - many capabilities required by all organisations which can be assessed to understand orgs’ relative success

Unique - combined capabilities of an org’s unique individuals provides the org different capabilities to any other org

Question 4

3 classifications (sources) of resources available to an organisation

Answer 4

Tangible (financial, physical)
Intangible (tech, culture)
Human (communication, motivation, etc.)

Question 5

Capabilities of organisation need to be understood from three aligned perspectives:

Answer 5

Organisational - how infrastructure & leadership enable utilisation of resources

Potential - how resources are stretched and utilisation maximised

Challenge - accumulation of resources

Question 6

2 basic types of competitive advantage

Answer 6

Cost advantage
Differentiation advantage

Question 7

Arie de Geus - what ‘may be the only sustainable competitive advantage’

Answer 7

The ability to learn faster than our competitors

Question 8

Two types of integration between organisations (brief explanation)

Answer 8

Horizontal integration (org’s on same level of supply chain working together)

Vertical integration (organisation works with customer / supplier)

Question 9

Lynch - competitive advantage is derived from interaction of 6 core operational aspects

Answer 9

• differentiation
• low costs
• high performance or tech
• quality
• service
• culture, leadership, style

Question 10

5 aspects leading to competitive advantage in a service business (Lynch 2015)

Answer 10

Reputation for quality of service
High quality and training of staff
Customer service
Well-known name
Customer-oriented

Question 11

5 aspects leading to competitive advantage in a market leading manufacturer (Lynch 2015)

Answer 11

Low costs
Strong branding
Good distribution
Quality product
Good value for money

Question 12

(acronym) Framework used to identify and consider significance of competitive attributes re. resources and capabilities

Answer 12

V value
R rarity
I inimitability
O organisational support

Question 13

VRIO - value

Answer 13

What is the value of the offering to the customer base?

Question 14

VRIO - rarity

Answer 14

Are the skills, resources and capabilities the company has rare / scarce?

Question 15

VRIO - inimitability

Answer 15

How difficult and costly would it be for competitors to replicate what we have?

Question 16

VRIO - organisational support

Answer 16

Organisational support is required to support the VRI - do the staff have sufficient resources?

Question 17

What is GAP analysis?

Answer 17

Analysis of the difference between anticipated performance and actual performance

Question 18

3 benefits/advantages of benchmarking

Answer 18

• Alignment of performance against strategic goals and objectives
• Acceleration of management of change
• Improvement of operational processes

Question 19

How is SWOT analysis linked to understanding of capabilities and competencies?

Answer 19

Understanding of capabilities and competencies allow an organisation to identify strengths and weaknesses

Question 20

Which two resources are considered key in driving competitive advantage

Answer 20

People
Money