Internal analysis

Question 1

Tangible Resources

Answer 1

a. Financial resources- capacity to borrow, capacity to generate funds
b. Organizational resources- formal reporting structures
c. Physical resources- sophistication of firm’s plant and equipment and attractiveness of its location
d. Technological resources

Question 2

Intangible Resources

Answer 2

a. Human resources- knowledge, trust, skills
b. Innovation resources- ideas, scientific capabilities
c. Reputational resources- brand name, perception of product, positive relation w/ stakeholders

Question 3

Capabilities- what is? Exemples.

Answer 3

are a result of the combination of resources of the company.

1. Distribution- Effective use of logistics management techniques
2. Human resources- Motivating, empowering, and retaining employees
3. Management information systems- Effective and efficient control of inventories through point-of-purchase data collection methods
4. Marketing- Effective promotion and customer service, innovative merchandise
5. Management- Ability to envision the future of clothing
6. Manufacturing
7. R&D

Question 4

Core competences

Answer 4

They result from the ability to combine resources in unique and valuable ways that distinguish the firm from competitors

Question 5

VRCN Analysis

Answer 5

• Valuable: provides high value to stakeholders and shareholders
• Rare: few firms have access to the resource
• Costly-to-imitate: hard for competitors to mimic the resource with the same efficiency. Ambiguous cause: hard to determine what is really the basis for the competitive advantage.
• Non-substitutable: is unique in some way

Question 6

Value Chain Analysis

Answer 6

Support activities – finance, HR and management information systems
Value chain activities – supply chain management, operations, distributions, marketing, follow-up service

Outsourcing is the purchase of a value-creating activity from an external supplier.