Kay’s distinctive capabilities

Question 1

What did Kay argue

Answer 1

• He also argued that there were 3 distinctive capabilities (DC) that could create added value and give a business competitive advantage. These were:
• Architecture – relationships with employees, suppliers, customers • Reputation – through the customer experience
• Innovation – bringing inventions to market

Question 2

Strategic decisions

Answer 2

Long term direction of the business, What the business will do to meet its aims and objectives, Pro-active decision making, Forward thinking, future planning

Question 3

Tactical decisions

Answer 3

Short or medium term decisions, How the business will implement its strategy, Reactive to competitor actions, Present day thinking, what is happening now that needs dealing with

Question 4

Strategic Human Resources

Answer 4

Strategic (proactive)
• Hiring new staff as part of a long term strategy to improve productivity
• Training staff to achieve the business objective of long-term efficiency and growth

Question 5

Tactical Human Resources

Answer 5

Having to hire a new network manager because the old one has quit
• Having to train staff because a new IT system has been introduced

Question 6

Strategic physical resources

Answer 6

• Moving a factory location to another country to achieve the long-term objective of cost cutting and profit maximisation

Question 7

Tactical physical resources

Answer 7

Moving a factory layout around to accommodate a new product being manufactured

Question 8

Strategic financial resources

Answer 8

Issuing shares to raise capital to achieve a long-term objective of growth and expansion
• Allocating budgets to new R&D projects which help the business to achieve the long-term objectives of expanding the product portfolio

Question 9

Tactical financial resources

Answer 9

Agreeing an overdraft with the bank to cover a shortfall in a cash flow forecast
• Arranging a bank loan to buy some office furniture to replace some that is old and broken