Tuesday, 1 October 2013

EVALUATING COMPANY’S RESOURCES, CAPABILITIES AND COMPETITIVENESS.

                                                                                                                     

Assalamualaikum to all readers…

I’m sorry because I was too late to update a new post. Do you know what I have learned in last week? Actually, in last week I have learned about evaluating company’s resources, capabilities and competitiveness. Ok, now I want to share with you what I have learned. Firstly, I learn the best indicators of a well-conceived and well-executed strategy are the firm’s achieving its stated financial and strategic objectives. Second, the firm is an above-average industry performer. After that, there are 7 key functional strategies which are:

Besides that, do you know what the meaning of market leader? For example, the market leader of petroleum is SHELL. Other example, the market leader of instant noodle is MAGGI. In addition, a capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm’s resources. In easy words, capability is how the company to utilize the resources that they have. A firm’s resources and capabilities represent its competitive assets and are big determinants of its competitiveness and ability to succeed in the marketplace. The VRIN tests for sustainable competitive advantage ask if a resource is: VALUABLE, RARE, INIMITABLE, and NON-SUSTAINABLE. Other than that, I also learn about SWOT analysis. 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) and external threats (strategic defenses). 

A competence is defined as an activity that a firm has learned to perform with proficiency. In other words is a capability. Then, the concept of a company value chain is indentifies the primary activities and related support activities that create customer value. 

Lastly is benchmarking concept. It means a potent tool for improving a company’s own internal activities that is based on learning how other companies perform them and borrowing their “best practices”. Besides that, in strategic management principle, benchmarking is the costs of company activities against rivals provide hard evidence of whether a company is cost-competitive.

Thats all from me, thank you...JJ
HAPPY READING.. See you next week..JJ