Strategic Capabilities

11 important questions on Strategic Capabilities

Strategic capabilities have 2 components, which?

1. Resources
2. Competences

What is reconfiguring in terms of capabilities?

Enacting strategies.

What are threshold capabilities?

Those needed for an organization to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market.
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What is organizational support?

The organization must also be suitably organized to support these capabilities. The supporting capabilities have been labelled complementary capabilities.

The importance of benchmarking is not so much in the detailed mechanics of the comparison but in the impact that these comparisons might have on reviewing capabilities underlying performances. It has therefore 2 limitations, which?

1. Surface comparisons
2. Simply achieving competitive parity

What is - according to Michael Porter - one of the most important things to?

Mapping activity systems.

How does mapping activity systems work in 2 steps?

1. Identify 'high order strategic themes'
2. Identify clusters of activities that underpin each of these themes and how these do or do not fit together.

Which 3 points needs to be emphasised in the mapping activity system?

1. Relationship to the value chain
2. Importance of linkages and fit
3. Relationship to VRIO

It is not only the conceptual level where activity maps are important, they are also helpful in the management of strategy, which 2 aspects?

1. Disaggregation
2. Superfluous activities

Name the 5 ways in which managers might develop strategic capabilities?

1. Internal capability development
2. External capability development
3. Ceasing activities
4. Monitor outputs and benefits when it is not possible to fully understand capabilities
5. Awareness development

Of which 3 aspects does internal capability development consist?

1. Building and recombining capabilities
2. Leveraging capabilities
3. Stretching capabilities

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