Chapter 4 Resources and capabilities analysis

Question 1

What is the Resource based strategy ?

Answer 1

The resource-based view of strategy asserts that the competitive advantage and superior performance of an organization are explained by the distinctiveness of its capabilities.

Question 2

What the purpose of resources and capabilities ?

Answer 2

The resources and capabilities of an organization contribute to its long-term survival and potentially to competitive advantage.

Question 3

What are the resources ?

Answer 3

Resources are the assets that organisations have or can all upon that is “what we have”.

Question 4

What are capabilities ?

Answer 4

Are the ways those assets are used or deployed that is “what we do”.

Question 5

What is a redundant capabilities ?

Answer 5

Capabilities, however effective in the past, can become less relevant as industries evolve can change.

Question 6

What are the threshold capabilities ?

Answer 6

Are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market.

Question 7

What are the distinctive capabilities ?

Answer 7

Are those that are required to achieve competitive advantage. Distinctive or unique capabilities that are of value to customers and which competitors find to difficult to imitate.

Question 8

What are strategic capabilities and competitive advantage ?

Answer 8

VRIO 
= Value 
= Rarity
= Inimitability 
= Organizational support

Question 9

What describes the value chain ?

Answer 9

the value chain describes the categories of activities within an organisation which, together, create a product or service.

Question 10

How much have primary activities and supports activities in the value chain ?

Answer 10

Five primary activities

Four supports activities

Question 11

What is the bench-marking ?

Answer 11

Is a means of understanding how an organization compares with others - typically competitors.

Question 12

What are the two approaches to bench-making ?

Answer 12

Industry/sector benchmaking 
Best in class benchmaking

Question 13

What are the internal capability development ?

Answer 13

Building and recombining capabilities
Leveraging capabilities
Stretching capabilities

Question 14

What are external capability development ?

Answer 14

external capability development
Ceasing activities
Monitor outputs and benefits
Awareness development