Firm resources: competitiveness and growth

23 important questions on Firm resources: competitiveness and growth

What is a resource-based view?

Leading perspective in global business that posits that firm performance is driven by firm-specific resources. Those resources are used for a competitive advantage.

What is the basic propsition of the resouce-based view?

A firm consists of a bundle of productive resources. These provide the basic for firms to attain competitive advantage in their markets

How do we more persicely define primarly resources?

As the tangible and intangible assets as well as the human resources that a firm uses to implement its strategies
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Capailities are normanlyy developd internally and depend to some degree on tactit knowlege;

They be specific to the firm and don't take the form of assets

Managers and consultants often have to analyse what?

The resources of a firms as a foundation for developing strategic advice

Tangible assets are those items that are observable and quantifiable what are the 2 categories?

1) financial assets
reflect the depth on a firm's financial pockets
2) physical assets
including plants, offices, infrastructure etc.

What are intangible assets?

Also found on companicies balance sheet but they are much harder to value. Include technological resources and reputational resources.

What do Human resources include?

- individual employees skills, talented and knowledge
-individual employees capacity for collaboration and their abilities for interpersonal interaction that aren't captured by the firm's formal systems and structures 
-employees shared values traditions and social norms within an organization

What are capabilities innovation?

Are a firms assets and skills to research and develop new products and services innovate a change ways of organizing

What are capabilities in operations?

Are a firms ability to effectively implement its regular activities notably the manufacturing process

What are capabilities in marketing?

Enable firms to develop and sustain brands and to induce consumers to buy these brands

What are capabilities in logistics and service?

Enable firms to manage interactions with (potential) customers and in bringing products to the right customer at the right time

What are capabilities to corporate coordination?

Include a firms planning command and control systems

Firms are excelled at all these resource capabilities;

They tend to have strength in some areas and weaknesses in others

The most fundamental question is do the resources add value?

- only value-creating resources can possibly lead to competitive advantage, whereas non-value-creating, capabilities may lead to competitive disadvantage
- relationship between value-creating resources and firm performance is straight forward

Next question how rare are these resouces?

Only value-creating and rare resources have the potential to potential to provide a temporary competitive advantage. Overall the question of rarity is a reminder of the cliche: if everyone has it, you cannot make money from it

Value creating and rear resources can be a...

Source of temporary competitive advantage but this will disappear quickly if competitors can imitate the resources

The difficulties of imitation are related to a phenomenon known as social complexity

Ways of organizing, typical of many firms

Overall only valuable, rare and hard-to-imitate resources that are organizationally embedded and exploited

Can lead to sustainable competitive advantage

A key tool for analyzing resources is benchmarking the essence of benchmarking is to compare your resources against those of your competitors on the basis of two questions?

1) which resources are most important in conferring sustainable competitive advantage in your industry?
2)how strong are your strengths and weaknesses as compared to your competitors?

What does provide generation, display and discussion of data in a benchmarking and lysis?

Main players with insight and understanding of their own organization

In addition to many factories process a number of service activities,

Are frequently out sourced to service providers in a process known as business process outsourcing (BPO)

When activities are moved from a firms main country of operations to another country what do we talk about?

Offshoring

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo