Hye readers! Are you waiting for my next entry? hehe. In this entry I will share to you about
EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS. In this chapter, we can
Learn
how to assess how well a company’s strategy is working. We can also understand
why a company’s resources and capabilities are central to its strategic
approach and how to evaluate their potential for giving the company a
competitive edge over rivals.
QUESTION 1: HOW WELL IS THE FIRM’S PRESENT
STRATEGY WORKING?
Best indicators of a
well-conceived,
well-executed strategy:
●The firm is achieving its stated
financial and strategic objectives.
●The firm is an above-average industry
performer.
QUESTION 2: WHAT ARE THE FIRM’S
COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES?
♦A resource is a competitive asset that is owned or controlled by a firm
♦A capability or competence is the capacity of a firm to perform and internal activity competently
through deployment of a firm’s resources.
♦A firm’s resources and capabilities represent its competitive
assets and are big determinants of its competitiveness and ability
to succeed in the marketplace.
QUESTION 3: IS THE COMPANY ABLE
TO SEIZE MARKET OPPORTUNITIES AND NULLIFY EXTERNAL THREATS?
For this part, we can determine it by using SWOT ANALYSIS. Why? Here is the reasons why:
●Is a powerful tool for sizing up a
firm’s:
vInternal strengths (the basis for
strategy)
vInternal weaknesses (deficient
capabilities)
vMarket opportunities (strategic
objectives)
vExternal threats (strategic
defenses)
That's all i can share to you about this chapter. Hope you enjoy!