Textbook Notes (363,559)
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Management (20)
33:620:301 (19)
Xi Wang (11)

Management Ch 4 Notes.docx

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Rutgers University
Xi Wang

Intro to Management Chapter 4 Notes Evaluating a Company’s Resources, Capabilities, and Competitiveness a) Internal analysis 1) How well is the company’s present strategy working? - Indicators of how well a company’s strategy is working are whether company is achieving stated financial and strategic objectives, whether its financial performance is above the industry average, and whether it is gaining customers and increasing its market share 2) What are the company’s competitively important resources and capabilities? - A company’s resources and capabilities are its competitive assets and determine whether its competitive power in the marketplace will be impressively strong or disappointingly weak - Resource and capability analysis provides managers with powerful tools for sizing up the company’s competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace – two step process: identify the resources and capabilities, and then figure out which are competitively most important and do four tests of resource’s competitive power - a resource is a productive input or competitive asset that is owned or controlled by the firm - a capability is the capacity of a firm to perform some internal activity competently; organizational capabilities are developed and enabled through the deployment of a company’s resources or some combination of its resources - resources fall into two categories: tangible and intangible. Tangible resources are those that can be touched or quantified readily; intangible resources include human assets and intellectual capital, as well as brands, images, reputation etc. - A resource bundle is a linked and closely integrated set of competitive assets centered around one of more cross functional capabilities - The Four Tests of a Resource’s Competitive Power: VRIN – is the resource valuable, rare, inimitable (hard to copy), and nonsubstitutable? - A company requires a dynamically evolving portfolio of resources and capabilities to sustain its competitiveness and help drive improvements in its performance - A dynamic capability is the ability to modify, deepen, or augment the company’s existing resources and capabilities 3) Is the company able to seize market opportunities and nullify external threats? - SWOT analysis: Strengths and Weaknesses, market Opportunities, and external Threats - Basing a company’s strategy on its most competitively valuable strengths gives the company its best chance for market success - Competence is having a true capability – you can perform something cons
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