5.1 Strategic capability and competencies

Question 1

An organisational capability is the potential to ______ an outcome.

Answer 1

achieve

Question 2

An organisational competence is the ability to apply and utilise a __________.

Answer 2

capability

Question 3

In what way are strategic capabilities both common and unique within organisations?

Answer 3

Common - because there are a plethora of capabilities required by each organisation
Unique - every organisation has a unique mixture of individuals

Question 4

What is the difference between tangible and intangible resources?

Answer 4

Tangible resources include financial (capital) and physical resources (such as machinery, property etc.)
Intangible resources include technology and organisational culture.

Question 5

“The _________ that exists within employees is seen as a core resource.” (Carter 1999)

Answer 5

Motivation

Question 6

What are Kay’s (1993) three core capabilities?

Answer 6

• a network of internal and external relationships (architecture)
• monitor, understand and build the way it is perceived by shareholders (reputation)
• be prepared to develop and exploit boundary-stretching ideas (innovation)

Question 7

The alignment of resource and capability which enables an organisation to meet stakeholder requirements and expectations, fulfill focused strategic objectives and goals and maintain its economic position within a market place, without advancing or declining against its competitors is know as its __________ capability.

Answer 7

threshold

Question 8

Lynch (2015) suggests 6 core operational aspects that give rise to competitive advantage. List them.

Answer 8

Differentiation
Low costs
High performance or technology
Quality
Service
Culture, leadership and style

Question 9

What does Barney’s VRIN stand for?

Answer 9

Value
Rarity
Inimitability
Non-sustainablity

Question 10

The resource concept of money falls into which three distinct categories?

Answer 10

Profitability
Wealth
Liquidity