Exam 5: Internal Analysis: Managing Capabilities, Costs and Knowledge

Customers typically favour open-source systems

The ability to raise capital should be considered part of the firm's financial resources

Knowledge has a defined value

Human capital is in the minds of individuals

Intellectual assets are displacing physical and financial assets

Competitive advantage is measured relative to the capital employed by the firm

Firms should excel at their core capabilities

Transforming human capital into structural capital is an important job for management

Many knowledge systems are scalable

Resources lead directly to competitive advantage

Data, information and knowledge are substitutable concepts

Combinations of resources are called capabilities

Managing transitions from one set of capabilities to another is very straightforward

All capabilities must directly add value for customer

Structural capital is not a collective concept

Intangible assets are typically represented on the firm's balance sheet

Firms have only a few options in extracting value from their intellectual property

Understanding how the value chain is evolving can provide competitive advantage

Changes in scale economics often drive industry restructuring