chapter four : EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS :)

sorry sorry sorry and one million sorry because late to update this chapter. even late, i still remember to do this work andddd this time i must continue all delayed chapter.

this entry is about EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS.

first, we must know how to assess how well a company’s strategy is working.

second, WHAT ARE THE FIRM’S COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES?

A resource is a competitive asset that is owned or controlled by a firm. A capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm’s resources. A firm’s resources and capabilities represent its competitive assets and are big determinants of its competitiveness and ability to succeed in the marketplace. Types of Company Resources :

Tangible Resources - Physical resources,  Financial resources, Technological assets, Organizational resources

Intangible resources - Human assets and intellectual capital, Brands, company image, and reputation assets, Relationships: alliances, joint ventures, or partnerships, Company culture and incentive system

third, IS THE COMPANY ABLE TO SEIZE MARKET OPPORTUNITIES AND NULLIFY EXTERNAL THREATS?

SWOT Analysis Is a powerful tool for sizing up a firm’s:

• Internal strengths (the basis for strategy)

• Internal weaknesses (deficient capabilities)

• Market opportunities (strategic objectives)

• External threats (strategic defenses)

fourth, ARE THE COMPANY’S COST STRUCTURE AND CUSTOMER VALUE PROPOSITION COMPETITIVE? 

The higher a company's costs are above those of close rivals, the more competitively vulnerable it becomes. However, the greater the amount of customer value that a company can offer profitably relative to close rivals, the less competitively vulnerable it becomes. As we've cover in this topic, a company's cost competitiveness depends not only on the costs of internally performed activities (its own value chain) but also on costs in the value chains of its suppliers and distribution channel allies. Bench-marking the costs of company activities against rivals provides hard evidence of whether a company is cost-competitive while performing value chain activities with capabilities that permit the company to either outmatch rivals on differentiation or beat them on costs will give the company a competitive advantage.

that's all for this entry. see you in the next entry. ASSALAMUALAIKUM :)