Exam 5: Analyzing Resources and Capabilities

The analysis of resources and capabilities is a valuable tool of strategy analysis for business enterprises; it is less applicable to not-for-profit organizations.

In general,higher level capabilities that involve cross-functional integration are the more strategically important because they are more difficult for rivals to replicate.

The key lesson from the failure of Eastman Kodak is the difficulty of maintaining focus on a particular customer need when the technology needed to satisfy that need changes radically.

In 1990,C.K.Prahalad and Gary Hamel introduced the concept of "core competence." Their argument was that:

There are two primary sources of profit (or "economic rent"):

To identify a firm's resources and capabilities,it is useful:

"Benchmarking" is:

Enterprise Resource Planning software (such as that supplied by SAP)is unlikely,on its own,to be source of competitive advantage because:

Benchmarking is an objective way of assessing the strength of a firm's resources and capabilities relative to those of competitors

Intangible resources tend to be more valuable than tangible resources because:

The difference between a resource and a capability is:

Firm's with outstanding capabilities are typically those which:

Strategy is concerned with matching a firm's resources and capabilities to the opportunities emerging from its environment.

Organizational culture comprises:

According to Prahalad and Hamel,a company's core competences are those capabilities that are fundamental to its strategy ad to its performance.

The resource-based view of firm implies that:

For most organizations,geographical location should be regarded as:

When a firm identifies a resource or capability that is a key weakness,the strategic response should be to upgrade that resource or capability through investment.

Strategy needs to take account of both the requirements of the firm's external environment and the firm's own resources and capabilities.Resources and capabilities rather than requirements of the external environment offer a stronger basis for strategy formulation when:

The ability of established firms to reconfigure their resources and capabilities around new technologies means that,typically,disruptive technologies are pioneered by established rather than new firms.