Question

A company consists of productive resources and capabilities. Resources are defined as “the tangible and intangible assets a firm uses to choose and implement its strategies.” Why must a company need these two to become successful?

Answer 1

Now to answer this i would like to point out that the answer is hidden in the question itself.

So when it is said that the company requires productive resources --How do you ascertain that the resource is productive?

You can classify the resource as productive only by the capabilitiy of that resource.

So to answer why the company requires resource and capability--I would like to answer by the following points

1) without resource no output can be achieved

2) To be successfull the company has to make a decision of make or buy on tangible resources (Physical in nature) --this resource selection involves study on ROI (return on investment) which involves

a) Break even analysis

b) Alternates sourcing and selection

c) How to monitor the product life cycle

d) Maintainence costs involved

3) Now Selection of intangible resource is very important as any market that thrives has one important factor

Goodwill --> This is very important, this can be generated by offering quality products at reasonable value for a very long period of time.

4) The above analysis can only be done by judging the capability of the resource --This can be done by case studies, output studies and studies of reaction to stimulas

If any company that has a roboust system that captures the above mentioned points will have high probability of success

P.S --> Kindly give thumbs up--> It will motivate me to provide more and more quality answers.