BUS 331 Chapter 4: ESM Ch. 4 – Internal Analysis
18 Feb 2016
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Document Summary
2 indicators for how well a company"s strategy is working: Whether the company is recording gains in financial strength and profitability. Whether the company"s competitive strength and market standing are improving. The stronger the indicators, the less need for a strategy change. Resource and capability analysis: (1) identify the company"s resources and capabilities, (2) examine them closely to figure out which are competitively important and whether they can help build a sustainable competitive advantage. Identifying competitively important resources and capabilities: resources tangible and intangible, capability/competence capacity of a firm to competently perform some internal activity, determining the competitive power of a company"s resources and capabilities: vrin. Vrin tests for a sustainable competitive advantage. Valuable and rare whether the resource/capability may contribute to a competitive advantage. Inimitable and non-substitutable whether the advantage can be sustained. Core competence competitively valuable and central to the company"s strategy.
