CAOT 31 Lecture Notes - Lecture 3: Pest Analysis, Dynamic Capabilities, Swot Analysis
30 Oct 2020
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Document Summary
Internal analysis: looking inside the firm core competencies. The goal should be to develop resources, capabilities and competencies that create a strategic fit with the firm"s environment. The important point here is that competitive advantage can be driven by core competencies. Core competencies that are not continuously nourished will eventually lose their ability to yield a competitive advantage. Without upgrading and ongoing improvement to core competencies, competitors are more likely to develop equivalent or superior skills. Activities enable firm to add value by transforming inputs into goods and services. In the interplay of resources and capabilities, resources reinforce core competencies, while capabilities allow managers to orchestrate their core competencies. The resource-based view = a model that sees resources as key to superior firm performance, of the firm provides a model that systematically aids in identifying core competencies. Tangible resources = resources with physical attributes, which thus are visible.
