DETAILS INSTRUCTION

4.2 Analysis of Firm Resources and Capabilities

Hints (also for sub-sections):

A. You will find a good guide for this section. Follow the

lists in the chapter and search for related data for our case company.

B. Make your own judgment on resources, capabilities, and competences using terms like

“strong”, “moderate”, and “weak” by comparing our company with other firms in the

same industry.

C. Your competition analysis in Project Part One should give you some thoughts for better

understanding the strength of the firm’s resources and capabilities.

D. Keep in mind that your analysis for Section 4.2 should be the basis of your “S” and “W”

of your SWOT analysis.

E. Length recommendation for Section 4.2 (including all sub-sections): at least ten pages

(APA format)

F. As you will have detailed analysis in sub-sections, just a few bridging paragraphs are

needed under the title “4.2”.

4.2.1 Tangible Resources

4.2.2 Intangible Resources

4.2.3 Capabilities

4.2.4 Core Competencies and Sustainable Advantages

Hints:

A. In this section you need to identify core competencies of the firm from the

capability/resources you analyzed in other 4.2.1-4.2.3. But you need to make sure

those competencies identified can create sustainable advantage for the Company using

the VRIO framework based on Barney (1991) article. You can find some information

about VRIO here: http://en.wikipedia.org/wiki/VRIO

B. Here are two articles relevant to this section: Barney (1991): “Firm resources and

sustained competitive advantage”; Prahalad and Hamel (1990): “The core competence

of the corporation”.

C. No more than four core competencies, because too many competencies would not be

called “core”!

D. Read the sample report “Nucore” or “Calpine” for some guide.

4.2.5 Value Chain Analysis

Hints:

A. Please read the value chain analysis part of Chapter 4 before you start.

B. First you need to briefly describe and analyze the value chain for related industries

following the content in Chapter 4 (e.g., Figure 4.2).

C. Then, analyze the company’s value chain following the guidance in the textbook. The

sample paper (“Nucor”) gives you a good example too.

4.2.6 Summary of Firm Resources, Capabilities, and Value Chain

5.1 Strength

5.2 Weakness

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