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Leveraging Resources and Capabilities

In: Business and Management

Submitted By lagnitonezra
Words 1503
Pages 7

GFMA 3103


Lecturer in charge: Prof. Dr. Mohamad Hanapi bin Mohamad

Prepared by

Resources and capabilities and organization structure
Resource is an input to the production’s process. It may be tangible, as in the assets of the company that can be seen or quantified. Human resources, funds and physical plant and equipment are examples of these tangible assets. Resources may also be intangible, such as reputation or a stock of patents and copyrights
Capabilities on the other hand refer to a company’s ability to make use of its resources in a highly productive manner. Both resources and capabilities are sources of competitive advantage and can be imitated.
An organizational capability is a company's ability to manage resources, such as employees, effectively to gain an advantage over competitors. The company's organizational capabilities must focus on the business's ability to meet customer demand. In addition, organizational capabilities must be unique to the organization to prevent replication by competitors. Organizational capabilities are anything a company does well that improves business and differentiates the business in the market. Developing and cultivating organizational capabilities can help small business owners gain an advantage in a competitive environment by focusing on the areas where they excel.
Resources, Competences and Capabilities
By evaluating core competences against these criteria, managers can gain a valuable insights into their ability to bring about any sustained advantage. The strengths and weaknesses of existing competences can be assessed and any opportunities or needs for competence building and leveraging can be...

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