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Flashcards in Chapter 3 Deck (2)
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1
Q

Discuss why it is important for a firm to study and understand its internal environment

A
  • companies are using its core competencies to implement an internal strategy
  • analysing the the firms entire portfolio of resources and capabilites
  • understanding how to deal with the capabilites and resources is a key outcome decision makers seek when analysing the internal organisation (e.g. VW with its strategy 2018
2
Q

Explain what capabilites are. What must a firm do to create capabilites?

A

Capabilites: Capabilites are used to complete the organisation’s activities required to produce and distribute the service for customers of creating value for the customers

  • Capabilites are the foundation of core competencies, Capabilites carry knowledge through the firms human capital
  • Capabilites are developed in funstional areas (mnufacturing, R&D, marketing)

-need to support its capabilites
Value chain analysis can help to identify capabilities (value capabilities, rare capabilities, costly-to-Imitate capabilities, non-substitutable capabilities)