evaluating company's RESOURCES, CAPABILITIES n COMPETITIVENESS

assalamualaikum..and start our day with Bismillah :)

Before Ms Ummi teach us about this topic, we watched the video about the hamburgers business by McDonald which are owned by Richard McDonald. McDonald is one of the very successful food business compared the others. Although McDonald is operated by non-muslim, it is not wrong if we make it as example and  follow the strategies,management and how the business is manage as long it does not violate with Syariah principles.

Best indicators of a well-conceived, well-executed strategy:

- The firm is achieving its stated financial and strategic objectives.

- the firm is an above-average industry performer.

COMPETITIVE ASSETS:

- are the firm's resources and capabilities.

- are the determinants of its competitiveness and ability to succeed in the marketplace.

- are what a firm's strategy depends on to develop sustainable competitive advantage over it's rival.

RESOURCE is a productive input or competitive asset that is owned or controlled by a firm.

               e.g: a fleet of oil tankers.

CAPABILITY is the capacity of a firm to perform some activity proficiently.

               e.g: superior skills in marketing.

SOCIAL COMPLEXITY is company culture, interpersonal relationships among managers or R&D teams, trust-based relations with customers and suppliers, while CAUSAL AMBIGUITY are two factors that inhibit the ability of rivals to imitate a firm's most valuable resources and capabilities.

DYNAMIC CAPABILITY is the ongoing capacity of a firm to modify its existing resources and capabilities or create new ones by:

- improving existing resources and capabilities incrementally

- adding new resources and capabilities to the firm,s competitive asset portfolio.

SWOT analysis is a powerful tool for sizing up a firm's:

- internal strengths (the basis for strategy) 

- internal weaknesses (deficient capabilities) 

- market opportunities (strategic objectives)

- external threats (strategic defenses)

A COMPANY'S INTERNAL STRENGTHS:

1) a COMPETENCE is an activity that a firm has learned to perform with proficiency- a capability.

2) a CORE COMPETENCE  is a proficiently performed internal activity that is central to a firm's strategy and competitiveness.

3) a DISTINCTIVE COMPETENCE is a competitively valuable activity that a firm performs better that its rival.

BENCHMARKING is a potent tool for improving a company's own internal activities that is based on learning how other companies perform them and borrowing their "best practices".

" coming together is a beginning;

keeping together is progress;

working together is success"!

last but not least....reminder to you all my friends n also to myself..always keep in mind, everything we do..it is because of ALLAH. may ALLAH bless us in everything we do.in sha ALLAH :D wasalam.....