Week 3

Question 1

Core capability

Answer 1

An interrelated, interdependent knowledge system

Question 2

Dimensions of core capabilities (4)

Answer 2

1. Employee knowledge and skills
2. Technical systems
3. Managerial systems
4. Values and norms

Question 3

How to handle the paradox of core capabilities/regidities? (4)

Answer 3

1. Abandonement
2. Recidivism: return to core capabilties
3. Reorientation
4. Isolation

Question 4

Empowerment

Answer 4

The belief in the potential of every individual to contribute meaningfully to the task at hand

Question 5

Test of valuable resources (5)

Answer 5

1. Test of inimitability
2. Test of durability
3. Test of appropriability
4. Test of substitutability
5. Test of competitive superiority

Question 6

How to upgrade resources (3)

Answer 6

• Adding new ones
• Upgrading to alternative resources that are threatening in the company’s current capabilities
• Move into a structually more attractive industry

Question 7

Errors companies make when they try to grow by leveraging resources (3)

Answer 7

• Managers tend to overestimate transferability
• Managers tend to overestimate their ability to compete in a highly profitable industrie
• Managers assume that leveraging generic resources will be a major source of competitor advantage

Question 8

Relevance

Answer 8

Differentiate from its rivals on dimensions they compete on

Question 9

Scarcity

Answer 9

Rareness

Question 10

Appropriability

Answer 10

Who captures the value that is created

Question 11

Durability

Answer 11

Technical life, economical life, time compression