OPPORTUNITIES AND
CAPABILITIES
Contents
I
Organizational Resources
II
Resource-Based Approach
III
A Companys Competitive
Capabilities
IV
Identifying
Competencies
Companys
Contents
VI
VII
Competitive Advantage
VII
I
Achieving
and
Sustaining
Competitive Advantage through
Resources & Capabilities
Organizational
Resources
There are many routes to competitive
advantage, but the most basic is
through a companys internal
resources and competitive
capabilities.
An organisation can identify its
internal strategic factors critical
strengths and weaknesses that are
likely to determine whether a firm
will be able to take advantage of
opportunities while avoiding threats.
Organizational
Resources
Tangible resources - the physical
assets of an organisation
Plant
People
Finance
Intangible resources - non-physical
assets
Information
Reputation
Knowledge.
Organizational
Resources
Organizational
Resources
Typically an organisations resources can
be considered under the following
categories:
3. Human resources
Resource-Based Approach
Resource-Based Approach
Capabilities
Capabilities refer to a company's ability
to exploit its resources.
Capabilities consist of processes and
routines that manage the interaction
among resources to turn inputs into
outputs
Capabilities
Example:
A company's marketing capability can
be based on the interaction among its
marketing specialists, information
technology, and financial resources a
capability is functionally based.
Thus, there are marketing capabilities,
manufacturing capabilities, and human
resources management capabilities.
Competitive Capabilities
Short development times in bringing
new products to the market
A strong dealer network
strong partnerships with key
suppliers
An R&D organization with the ability
to keep the companys pipeline full of
innovative new products
A high degree of organizational
agility in responding to shifting
products
Competitive Capabilities
A high degree of organizational
agility in responding to shifting market
conditions and emerging opportunities
A cadre of highly trained customer
service representatives
State-of-the-art systems for doing
business via the internet.
6. H
Distinctive competence
Sizing
Competitive Advantage
Sizing up a firms resource strengths
and weaknesses and its external
opportunities and threats, commonly
known as SWOT analysis, provides a
good overview of whether a firms
business position is fundamentally
healthy or unhealthy.
Competitive Advantage
SWOT analysis is grounded in the
basic principle that strategy-making
efforts must aim at producing a good
fit between a companys resource
capability (as reflected by its balance
of resource strength and weaknesses)
and its external situation (as reflected
by industry and competitive
conditions, the companys own
market opportunities, and specific
external threats to the companys
profitability and market standing)
Competitive Advantage
Perceptive understanding of a
companys resource capabilities and
deficiencies, its market opportunities
and the external threats to its future
well-being is essential to a goodstrategy making.
Competitive advantage is
achieved and can be sustained
through consistent maintenance
and training of workers.
Resources may not be effectively
used in organizations
Employees are recruited
based on favouritism of
management employees and
not because of qualification.
Conclusion &
Recommendation
S
A firms goals and objectives
should align with its resources and
capabilities, leveraging its core
competencies and helping it
achieve its strategic intent.
the firms should be able to
identify the resources and
capabilities required to close the
gap between the strategic intent
and the current position.
Conclusion &
Recommendation
Work
Environment
Accomplishing
Tasks
Work Pressure
Levels of
Interest
Peer Pressure
Supervisory
attitude to
employees
Job and Work
attitude
Input
Proce
ss
Teamwork
Learning from
more
experienced
employees
Working
Together
Regular
Consultation
with Employees
Regular
feedback on
employees and
organization's
performance
Faster
Accomplishme
nt of Task
Work Efficiency
Improved
Relationship
Among
Employees
Enhanced
Respect
Increased
Productivity
Acquired Skills
Increased
Accountability
Employee
Independency
Outp
ut
Economic
Employees Work
Impact on
Attitude
Organizatio
Government
nal
Employees
Performanc
Employees
e and in
Opinions
turn on the
Province of
Work
Private
Environment Palawan
Employees
30
Research
Design
Instrument
Procedure