Peng Inst Chapter 4 REVISED (2nd Edition)

Peng Inst Chapter 4 - Peng GlobalBusiness2e Chapter4 Capabilities 1 LEARNINGOBJECTIVES 1 2 andcapabilities 3 andoutsour

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Peng Global Business 2e Chapter 4 Leveraging Resources and  Capabilities 1
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LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Define resources and capabilities. 2. Explain how value is created from a firm’s resources  and capabilities. 3. Articulate the difference between keeping an activity in house  and outsourcing it. 4. Explain what a VRIO framework is. 5. Participate in two leading debates on leveraging  resources and capabilities. 6. Draw implications for action. 2
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Saturna Capital Why is Saturna (located in Bellingham,  Washington) able to outperform rivals  (despite small size and location)? It’s unique  resources  and  capabilities   (e.g., talent of the founder, company’s  corporate governance and ethical  principles).   3
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Resource-Based View and SWOT Analysis Resource–based view (internal) is the second major  perspective to explain firm performance. SW = Strengths and Weaknesses  (resource-based view) Internal assessment of the organization OT = Opportunities and Threats (institution-based view) External assessment of the business 4
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Key Components of the  Resource-Based View Tangible vs. Intangible Resources  and Capabilities The Value Chain Decision to Outsource (locally or  offshore) VIRO Framework 5
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UNDERSTANDING RESOURCES AND  CAPABILITIES Resources – tangible and intangible assets that a firm  uses to choose and implement its strategies. Essentially, firms use resources to take advantage of  external opportunities. Capabilities – the ability of a firm to integrate and  deploy resources e.g., management skills. Capabilities are intangible – e.g., Finland in the  Russo-Finnish War. Author uses resources and capabilities  interchangeably. 6
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UNDERSTANDING RESOURCES AND  CAPABILITIES Tangible resources and capabilities -  Assets  that are observable and easily quantified. Intangible resources and capabilities - 
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This note was uploaded on 03/16/2011 for the course MGMT 418 taught by Professor Byles during the Spring '11 term at VCU.

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Peng Inst Chapter 4 - Peng GlobalBusiness2e Chapter4 Capabilities 1 LEARNINGOBJECTIVES 1 2 andcapabilities 3 andoutsour

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