Question

Answer three of the questions that appear below.

Keep in mind that each question has more than one part. Be sure to answer all parts of the quest.

Make certain that you cite sources appropriately. If you do indeed cite a source, explain it – explain why is helps answer the particular question.

1. Explain what resources, competencies capabilities are, and how they can be used to create value (not the value chain) and competitive advantage. Be sure to consider capabilities and how do they affect resources and competencies.
2. Describe three barriers to entry within a specific service area and explain why you think these are the most important barriers.
3. Compare and contrast Strategic Planning, Strategic Thinking and how they impact and shape Strategy and Operational Effectiveness.
4. Define Mission, Vision and Values and explain how they are the foundation for strategy development and implementation.

Answer 1

Resources are various assets that an organization have. Examples of resources can be employees, money, technology, patents, etc. These are owned by the organization and are utilized/used by the organization to conduct their operation in the market.

Capabilities is the ability of the organization to use their resources effectively. This means capability depends on how the organization utilizes its machines, equipment, people, technology, process, and other resources.

Competency refers to the integration of various capabilities that can provide the organization with a certain advantage in the market. For example, if an organization can use their employees and make them work as per a certain process that is better than others in the market, it is an example of their competency.

When it comes to the relationship between the three, we can see that capabilities is built on utilization of resources and when capabilities are executed properly, they form competency for an organization. Each of them can create value in their own rights. Resources can be a strong resource of competitive advantage. For example, an organization that has high performing machinery that is very expensive or not easy to get is an example of resource that can provide competitive advantage. When it comes to capabilities, high quality employees are often considered a competitive advantage. A good employee can contribute a lot to an organization and their capabilities to utilize the company resources becomes a competitive advantage. Finally, the mix of the resources and capabilities provide an organization with through and strong competitive advantage. An example is Google. They have a strong search engine (resource), intelligent employees to leverage that (capabilities), and their entire ecosystem works wells (competency).