Chapter 4 Evaluating Companys Resources, Capabilities and Competitiveness

Performance Indikator: Trends in sales and earnings growth Trends in the companys stock price The companys overall financial strength The rate at which new customers are acquired Image and reputation with customers Evidence of improvement in internal processes such as defect rate, order fulfillment, and days of inventory

Identifying Competitively Important Resources and Capabilities: Common types of valuable resources and competitive capabilities include Skills or specialized expertise in a competitively important capability Valuable physical assets Valuable human assets or intellectual capital Valuable organizational assets Valuable intangible assets Competitively valuable alliances or cooperative ventures Taking Inventory of a Companys Strengths, Weaknesses, Opportunities and Threats S W O T represents the first letter in S trengths W eaknesses O pportunities T hreats For a companys strategy to be well-conceived, it must be Matched to its resource strengths and weaknesses Aimed at capturing its best market opportunities and defending against external threats to its well-being Overall value of SWOT Analysis: Ability to draw conclusions about the companys overall situation. Ability to translate into strategic actions: Better match the companys strategy to its resource strengths and market opportunities, Correcting problematic weaknesses, and Defending against worrisome external threats. Key analytical tools: Value chain analysis Benchmarking