Internal Analysis

Question 1

What are Capability Characteristics

Answer 1

• Cannot be readily observed
• Not tradable separately from whole unit
• Contribute to higher value, lower cost, or both
• Developed by people through coordinated action
• Less stable than a resource
• Can derive strategic value from use in support of firm’s
  resources

Question 2

Definition of a core competencies

Answer 2

• Must provide a disproportionate contribution to
  ultimate customer value or to the efficiency with which
  the value is derived; and
• Provide a basis for entering new markets

Most firms with two to three core competencies

Question 3

What are the Internal Analysis components:

Answer 3

• Core competencies
• Capabilities
• Resources

Question 4

What are the components to a Porter’s Value Chain?

Answer 4

Support Activities:

Firm Infrastructure:
Human Resource Management:
Technology Development:
Procurement:

Primary Activities:
Inbound Logistics
Operations
Outbound Logistics
Sales and Marketing
Customer Service Support / Post Sale service

Question 5

What are the components of a VRIO Analysis

Answer 5

Valuable - is there perceived customer value
Rare - is it rare
Inimitable - is it difficult to imitate
Organized - Do you have management systems, processes, policies, and organizational structure to take advantage of
resources and capabilities?