5.2 Sources of strategic capability

Question 1

Give examples of tangible resources.

Answer 1

Financial resources including short-term capital.

Physical resources including land, buildings, machinery, vehicles, etc.

Question 2

Give examples of intangible resources.

Answer 2

Technology

Culture

Question 3

What is meant by “human resources”?

Answer 3

The skills of employees and the knowledge held by them.

Question 4

In “Renaissance Management” Carter (1999) categorised employee motivation into 4 categories. What were these?

Answer 4

Players
Spectators
Cynics
The Walking Dead

Question 5

Lynch (2015) defines organisational capability as the skills, structures and _________ of the organisation behind all its assets together and allow them to interact efficiently.

Answer 5

leadership

Question 6

Kay (1993) identified three core capabilities of an organisation:

• maintaining a network of internal and external relationships
• monitoring and understanding how it is viewed by stakeholders
• innovative capability to develop boundary-stretching _____

Answer 6

ideas

Question 7

In Competitive Advantage (2004) Porter suggested two basic types of competitive advantage:

1) Cost advantage - providing a cheaper product
2) ______________ advantage - providing a distinct product

Answer 7

Differentiation