33:620:301 Chapter Notes - Chapter 4: Resource-Based View, Social Complexity, Value Chain

• School: Rutgers University
• Department: Management and Global Business
• Course: 33:620:301
• Professor: Ed Hubbard

Document Summary

Management chapter 4: evaluating a company"s resources, capabilities, and competitiveness. Sluggish financial performance and 2nd rate market accomplishments almost always signal weak strategy, weak execution, or both. Also big determinants of its competitiveness and ability to succeed in marketplace. Resource and capability analysis: tool for sizing up a company"s competitive assets and determining if they can support a sustainable competitive advantage over market rivals. Resource: a competitive asset owned/controlled by a company. Capability/competence: capacity of firm to perform some internal activity competently. Resource bundle: linked and closely integrated set of competitive assets centered around 1 more more cross-functional capabilities. Vrin testing for sustainable competitive advantage: ask if a resource is valuable, rare, inimitable, and non-substitutable. Social complexity and causal ambiguity: 2 factors that inhibit the ability of rivals to imitate a firms most valuable resources and capabilities. A company requires a dynamically evolving portfolio of resources and capabilities to sustain its competitiveness and help drive improvements in its performance.