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Resources and Capabilities

  

5BE of Business

6Ws of Business
 
 

Each corporation is a collection of unique resources and capabilities that provides the basis for its strategy and the primary source of its returns. This  collection of evolving capabilities must be managed dynamically in pursuit of above-average returns.

  6Ws of Sustainable Growth Pursuing Opportunities Fast Company Strategic Management Sustainable Growth Customer Value Creation Corporate, Vision, Mission, Goals Shared Values Sustainable Competitive Advantage Enterprise-wide Business Process Management Innovation Management Marketing and Selling Corporate Leaders Team Building and Teamwork Change Management Market Research Know WHAT: Balanced Business System Know HOW: Business Model Enterprise Strategy People Power Sustainable Value Creation Road-mapping Entrepreneurial Leadership Corporate Capabilities Competitive Strategies Winning Organization Management Employee Empowerment Partnerships Sales Success Business e-Coach 6Ws of Corporate Sustainable Growth and Business Success

 
 

Thus, differences in firm's performances across time are driven primarily by their unique resources and capabilities rather than by an industry's structural characteristics.

 

 

 
 

Resources are inputs into a firm's production process, such as capital, technology, equipment, talented managers,  skills of individual employees, intellectual property, and finance.

Resources can be classified into three categories:

1. Physical capital

2. Human capital

3. Organizational capital.

Resources are either tangible or intangible in nature. With increasing effectiveness, the set of resources available to the firm tends to become larger. Individual resources may not yield to a competitive advantage. It is through the synergistic combination and integration of sets of resources that competitive advantages are formed.

 

 

 
 

A capability is the capacity for a set of resources to integratively perform a stretch task or an activity. The opportunity for your company to sustain your competitive advantage is determined by your capabilities of two kinds – distinctive capabilities and reproducible capabilities – and their unique combination you create to achieve synergy.

Through continued use, capabilities become stronger and more difficult for competitors to understand and imitate. As a source of competitive advantage, a capability should be neither too simple that it is highly imitable, nor too complex that it defies internal steering and management.

 
 

Core Competencies  ▪  Distinctive Capabilities  ▪  Functional Capabilities

  

 

 
 

Resource-based Model of Strategic Management

Resource-based model of strategic management is about achieving superior returns by best exploiting internal resources and capabilities... More