Strategic Capabilities

Question 1

What are the 2 key concepts underpinning Strategic Capabilities?

Answer 1

Unique resources - something that the company has which nobody else has or can obtain

Core competences - a way of doing something which is better than the way everybody else does it

Question 2

Which four qualities must resources and competencies have, in order for competitive advantage to be achieved?

Answer 2

1. ) Value
2. ) Rarity
3. ) Inimitability
4. ) Organisational Support

Question 3

What is the definition of dynamic capabilities?

Answer 3

Dynamic Capabilities are an organisation’s abilities to develop and change competences to meet the needs of rapidly changing environments.

Question 4

When can a SWOT analysis be used?

Answer 4

A SWOT analysis can be carried out when asked for a “strategic position analysis”.

Question 5

What is the difference between Strengths & Weaknesses, and Opportunities & Threats

Answer 5

Strengths and weaknesses relate to internal factors such as resources and capabilities

Opportunities and threats relate to external factors (e.g. PESTEL/five-forces)

Question 6

What are the primary activities of the Value Chain?

Answer 6

Inbound logistics – ordering, receiving, storing and handling raw material inputs.
Operations – transformation of the raw materials into finished goods and services.
Outbound logistics – order processing, storing, distributing and delivering finished goods to customers
Marketing and sales
Service – all activities that occur after the point of sale

Question 7

What are the secondary (support) activities of the Value Chain?

Answer 7

Firm infrastructure – how the firm is organised.
Human resources development – how people contribute to competitive advantage.
Technology development – how the firm uses technology.
Procurement – purchasing, but not just limited to materials.