4.Define capabilities and discuss their development. a. Capabilities: abilities within a functional area. Blending of tangible and intangible resources. Developed in specific functional areas or in a part of a functional area. 5.Describe four criteria used to determine if resources and capabilities are core competencies.
6.Explain how firms analyze their value chain for the purpose of determining where they are able to create value when using their resources, capabilities, and core competencies. a. Looking at your resources to see what creates value and what does not create value. 7.Define outsourcing and discuss reasons for its use. a. Outsourcing: purchase of a value-creating activity or a support function activity from an external supplier. Outsourcing can increase flexibility, mitigate risks, and reduce their capital investments. Companies do this because they can’t do everything well. 8.Discuss the importance of identifying internal strengths and weaknesses.
a. If a firm has weak capabilities or does not have core competencies in areas required to achieve a competitive advantage, it must acquire those resources and build the needed capabilities and competencies. 9.Discuss the importance of avoiding core rigidities. a. That means we’re relying on advantages for too long. We’re stuck in old habits
You've reached the end of your free preview.
Want to read all 3 pages?
- Spring '14