What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences?

Part 1:

1. Why is it important for a firm to study and understand its internal organization?

2. What is value? Why is it critical for the firm to create value? How does it do so?

3. What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating capabilities than are intangible resources, or is the reverse true? Why?

4. What are capabilities? How do firms create capabilities?

5. What four criteria must capabilities satisfy for them to become core competencies? Why is it important for firms to use these criteria to evaluate their capabilities value-creating potential?

6. What is value chain analysis? What does the firm gain by successfully using this tool?

7. What is outsourcing? Why do firms outsource? Will outsourcing’s importance grow in the future? If so why?

8. How do firms identify internal strengths and weaknesses? Why is it vital that managers have a clear understanding of their firms strengths and weaknesses?

9. What are core rigidities? What does it mean to say that each core competences could become a core rigidity?


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