Friday, 13 December 2013

EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS

In this topic have covered how to assess how well a company’s strategy is working. First of all, best indicators of a well –conceived and well-executed strategy it just like the firm is achieving its stated financial and strategic objectives and the firm is an above-average industry performer to make firms can survive on the community.

The figure it show identifying the components of a single-business company’s strategy



The figure shows that in specific indicators of strategic success for the single-business to performance in become growth in firm’s sales and market share and become strong firms in financial and have place in the market.

Then understanding a company’s resources and capabilities are central to its strategic approach and to evaluate the potential for giving the company a competitive edge over rival. The firm should know competitive assets such as a resource is a competitive asset that is owned or controlled by firm as a capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm resources and then know 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 means by a resource is a productive input or competitive asset that is owned or controlled by a firm take as example a fleet of oil tankers. Thus, the means for a capability is the capacity of a firm to perform some activity proficiently to manage the firm and used good way to solve the problem when it come such as superior skills in marketing its just like have strong skill to make a good marketing. That can make powerful tool for sizing up a company competitive assets and determining if they can support a sustainable competitive advantages over market rivals. Furthermore, identifying capabilities of an organization capacity is the intangible but observable capacity of a firm to perform a critical activity proficiently using a related combination such as cross-functional bundle of its resources. Then are knowledge-based, residing in people and in a firm intellectual capital or in its organizational processes and functional systems, which embody tacit knowledge. A company requires a dynamically evolving portfolio of resources and capabilities to sustain its competitiveness and help drive improvements in its performance.


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