Core competencies are resources and capabilities that serve as a source of competitive advantage for a firm over its rivals. Describe the three categories of resources and explain how capability relates to the organization's set of resources.
The analysis of the remote environment will be undertaken at both the corporate and the business-unit level. There are obviously many different aspects of the remote environment that can have significant impact on the operation of the firm, its competitors, and its customers.
Define the six components of the PESTLE acronym. Explain how the PESTLE Model can assist us in reviewing the remote environment aspects.
Define corporate governance and explain why it is used to monitor and control managers' strategic decisions. Explain how three internal governance mechanisms' ownership concentration, the board of directors, and executive compensation are used to monitor and control managerial decisions.
1. Three categories of resources are: land, labor, and capital. Land comes in the category of natural resources which a company derives from the environment. Labor is the human resource that is responsible of taking activities defined in the project. Capital consists of resources like equipment, vehicles, machinery, etc. which are used in the organization for fulfilling activities.
Research has suggested that there is a significant relationship between organization's resources and capabilities. Resources are firm's assets, capabilities, processes, attributes, information, knowledge, etc. controlled by the firm to implement its strategies which improve its efficiency and effectiveness. Capabilities are organization's capacity to deploy resources. The resource based view of an organization explains its ability to deliver sustainable competitive advantage when resources are managed in such a manner that the organization generates a unique capability which cannot be imitated by competitors. Unique capabilities leading into competitive advantage are thus generated by virtue of resources being rare, valuable, inimitable, non-tradable, non-substitutable, and firm specific.
2. PESTLE stands for-Political, Economic, Social, ...
The solution describes the three categories of resources and explain how capability relates to the organization's set of resources.