Exam 5: Analyzing Resources and Capabilities

David's victory of over Goliath (as portrayed in The Bible)demonstrates the importance of aligning strategy with one's resources and capabilities.

Organizational capabilities are based upon an organization's processes and routines.

When a company has weaknesses relative to competitors among strategically important resources and capabilities,the appropriate strategic response is to:

When a firm's capabilities are based upon team effort rather than the skills of star employees the returns from those capabilities accrue to employees rather than to shareholders.

Resources lack transferability between firms when:

The trend among companies to "hire for attitude; train for skills" is the result of research identifying that the importance of psychological and social aptitudes in determining superior work performance.

When considering which industry segments a firm should specialize in,it is more important to be guided by segment attractiveness than whether the key success factors align with the firm's resource and capability strengths.

The distinguishing attributes of core competences is that:

A strong brand is unlikely to be a source of sustainable competitive advantage since brands lack durability and can be purchased or created through advertising and promotion.