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
