Resources and Capabilities

Question 1

Define: resources

Answer 1

Productive assets owned by the firm

Can be tangible or intangible

Question 2

Define: capabilities

Answer 2

What the firm can do

Question 3

What did Prahalad and Hamel (1990) highlight the potential for resources and capabilities to be?

Answer 3

1 - the basis of competitiveness
2 - the source of new products
3 - the foundation for strategy

Question 4

In order to make a profit, what must a firm do?

Answer 4

Use its resources and capabilities to establish and maintain a competitive advantage

Question 5

What does a good understanding of the resources and capabilities of a firm provide the basis for?

Answer 5

1 - Selecting a strategy that exploits a firm’s key strengths
2 - Developing a firm’s resources and capabilities

Question 6

Define: human resources

Answer 6

expertise and effort offered by employees

Question 7

Outline: competency modeling

Answer 7

1 - Identify skills, knowledge, attitudes and values associated with superior performers within a particular job category.
2 - Assess each employee against that profile
3 - Use results to identify training needs, make hiring and promotion decisions, and to determine compensation

Question 8

To be the basis of an effective strategy, a core capability must be….

Answer 8

1 - Hard to copy
2 - Durable
3 - Sustainable
4 - Superior to Competitors’
5 - Appropriable to the Organization

Question 9

Outline the three key steps for appraising resources and capabilities

Answer 9

1 - Identify Key Resources and Capabilities

2 - Appraise Resources and Capabilities

3 - Develop Strategy Implications