Literature

1.What is the relevance of the resource-based view of thefirm to strategic management in a global environment?

a. Identify and classify the firm's resources in terms of strengths and weaknesses.

b. Combine the firm's strengths into specific capabilities and core competencies.

c. Appraise the profit potential of these capabilities and competencies in terms of their potential for sustainable competitive advantage and the ability to harvest the profits resulting from their use.

d. Select the strategy that best exploits the firm's capabilities and competencies relative to external opportunities.

e. Identify resource gaps and invest in upgrading weaknesses.  

2.How can value chain analysis help indentify a company’sstrengths and weaknesses?

The value chain helps because it identifies who is dependent on who can add value to the chain to improve everything overall. The earlier you can add value in chain, the stronger the strengths are. Identifying the dependencies will help show where the company is particularly vulnerable, especially if it’s bottleneck.

3. In what ways may a corporation’s structure and culture be internal strengths or weaknesses?

If a corporation’s structure is compatible with present and potential strategies, it can be viewed as an internal corporate strength. If, however, the structure is not compatible with either present or potential strategies, it is a definite weakness and will act to constrain strategy formulation. For example, if a corporation is structured on the basis of function, this may be a weakness if the firm wishes to grow by acquiring other profitable corporations. In order to implement such a strategy, the strategy formulators may have to reorganize on a divisional basis. To the extent that top and middle managers have no experience with such structure, a lot of unforeseen problems can emerge which may seriously affect the success of the strategy.

Corporate culture, a collection of beliefs, expectations, and value...