2. Analysing an organisation’s resources and capabilities Environment Resources Purpose Options Options Options Choice Implement This session
3. Why are strategic resources and capabilities important? Why are resources and capabilities important in strategy ? … Because they deliver competitive advantage ..Because they deliver value added Value added : the company’s profits over time Competitive advantage : its brands, patents, distribution, etc. See: Lynch Ch 4, Section 4.3
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6. Analyse the role of competitive resources Individual organisation’s resources: make-or-buy? Value added: How? Where? Sustainable Competitive Advantage (SCA) Value Added can contribute to SCA and vice versa Industry key factors for success The seven main concepts of SCA Value chain Value system Concept of Economic Rent Hierarchy of Resources Route 1 Route 2