Describe at Least Three Types of Tangible and Intangible Resources and Capabilities?

Describe at least three types of tangible and intangible resources and capabilities?

Tangible resources and capabilities: assets that are observable and easily

Include: quantified.

Financial resources and capabilities.

Physical resources and capabilities: plants, offices, and equipment, their geographic

Locations, and access to raw materials and distribution channels.

Technological resources and capabilities: skills and assets that generate leading edge

Products and services supported by patents, trademarks, copyrights, and trade

secrets.

Organizational resources and capabilities - a firm’s planning, command, and control

systems and structures.

Intangible resources and capabilities (assets that are hard to observe and difficult to

quantify) include the following three:

Human resources and capabilities: the knowledge, trust, and talents embedded within

a firm that are not captured by its formal, tangible systems and structures.

Innovation resources and capabilities: a firm’s assets and skills to (1) research and

develop new products and services and (2) innovate and change ways of organizing.

Reputational resources and capabilities: a firm’s abilities to develop and leverage its

reputation as a solid provider of goods/services, an attractive employer, and/or a

socially responsible corporate citizen

What is meant by “commoditization”?

Commoditization: the point at which an industry specific activity becomes common

across industries and the need to keep it proprietary no longer exists.

What is the difference between outsourcing and captive sourcing?

Outsourcing turns an activity over to an outside supplier whereas captive sourcing does

the work within the firm but in a foreign location.

When analyzing a value chain with a VRIO framework, what is the most important

question to begin with and why?

Do firm resources and capabilities add value? The value chain analysis suggests that this is the most fundamental question. Only value-adding resources can possibly lead to competitive advantage, whereas no value-adding capabilities may lead to competitive disadvantage..

How can SWOT analysis be used in value chain analysis? Use an example to support

your answer.

The value chain analysis pertains to the primary and support activities going from input

to output. In each of those activities it can be useful to determine their strengths,

weaknesses, opportunities, and threats affecting the vertical activities used in the

production of goods and services to add value. Students may have various examples.

Which is more difficult: imitating a firm’s tangible resources or its intangible resources?

It is relatively easy to imitate a firm’s tangible resources (such as plants), but it is a lot

more challenging and often impossible to imitate intangible capabilities such as tacit

knowledge, superior motivation, and managerial talent.