BUS 800 Study Guide - Final Guide: John Wiley & Sons, Competitive Advantage, Human Resources
Document Summary
Chapter learning objectives: appreciate the role of a firm"s resources and capabilities as a basis for formulating strategy. While the emphasis in chapter 2 was on the external environment, this chapter highlights the importance of internal resources and capabilities. Resources are what the firm has or owns; capabilities are what the firm can do. Different ways of identifying and appraising resources and capabilities include functional and hierarchical classification schema and value chain analysis: evaluate the potential for a firm"s resources and capabilities to confer sustainable competitive advantage. The profit-earning potential of a resource or capability depends on the extent to which it can be used to establish a competitive advantage. The key factors determining this potential are summarized in figure 3. 6: use the results of resource and capability analysis to formulate strategies that exploit internal strengths while defending against internal weaknesses.
