BUS 800 Chapter Notes - Chapter 3: Short Circuit, Dynamic Capabilities, Swot Analysis

• School: Ryerson University
• Department: Business
• Course: BUS 800
• Professor: Steven Tissenbaum

Document Summary

The role of resources and capabilities in strategy formulation. Ch(cid:1005) stated: t(cid:396)ateg(cid:455) is (cid:272)o(cid:374)(cid:272)e(cid:396)(cid:374)ed (cid:449)ith (cid:373)at(cid:272)hi(cid:374)g a fi(cid:396)(cid:373)"s (cid:396)esou(cid:396)(cid:272)es a(cid:374)d capabilities to the opportunities that arise in the external environment. Ch(cid:1006) stated: the ide(cid:374)tifi(cid:272)atio(cid:374) of p(cid:396)ofit oppo(cid:396)tu(cid:374)ities i(cid:374) the fi(cid:396)(cid:373)"s e(cid:454)te(cid:396)(cid:374)al environment. 1: firms industry environments have become more unstable, so. R&c rather than external market focus have been viewed as a more secure base for formulating strategy. 2: competitive advantage rather than industry attractiveness is the primary source of superior profitability. Technology industries are fast moving and companies are built on specific technological capabilities the markets where these capabilities are applied are a secondary consideration. The g(cid:396)eate(cid:396) the (cid:396)ate of (cid:272)ha(cid:374)ge i(cid:374) a fi(cid:396)(cid:373)"s e(cid:454)te(cid:396)(cid:374)al e(cid:374)(cid:448)i(cid:396)o(cid:374)(cid:373)e(cid:374)t, the (cid:373)o(cid:396)e likel(cid:455) it is that internal resources and capabilities rather than external market focus will provide a secure foundation for long-term strategy.