MARKETING Lecture Notes - Lecture 16: Human Resources, Outsourcing, Social Complexity
15 Nov 2021
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Document Summary
Resources are what a firm has to work with-ts assets-including its people and the value of its brand name. Resources represent inputs into a firm production process such as capital equipment, skills of employees, brand names, finances and talented managers. Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage. Capabilities are what a firm does,and represent the firm"s capacity or ability to integrate individual firm resources to achieve a desired objective. Core competencies are resources and capabilities that serve as a source of competitive advantage over rivals. Core competencies distinguish a company competitively and make it distinctive. Mckinsey and co. recommends using three four competencies when framing strategic actions. Valuable: capabilities that help a firm neutralize threats or exploit opportunities. Rare: capabilities that are not possessed by many others. Costly to imitate: capabilities that other firms cannot develop easily, usually due to.
