MATCHING

OPPORTUNITIES AND
CAPABILITIES

Presenter: JUAN F. PUJOL, JR.

Strategic Management for Competitive Governance

Contents
I

Organizational Resources

II

Resource-Based Approach

III

A Companys Competitive
Capabilities

IV

The Relationship between

Company Resources and
Capabilities

Identifying
Competencies

Companys

Contents
VI

Opportunities in the Business

Environment

VII

Competitive Advantage

VII
I

Achieving
and
Sustaining
Competitive Advantage through
Resources & Capabilities

Organizational
Resources
There are many routes to competitive
advantage, but the most basic is
through a companys internal
resources and competitive
capabilities.
An organisation can identify its
internal strategic factors critical
strengths and weaknesses that are
likely to determine whether a firm
will be able to take advantage of
opportunities while avoiding threats.

Organizational
Resources
Tangible resources - the physical
assets of an organisation
Plant
People
Finance
Intangible resources - non-physical
assets
Information
Reputation
Knowledge.

Organizational
Resources

Typically an organisations resources can

be considered under the following
categories:
1. Physical resources
Machines
Buildings or the production capacity
of the organization
2. Financial resources
Capital
Cash
Debtors
Creditors
Suppliers of money (shareholders,

Organizational
Resources
Typically an organisations resources can
be considered under the following
categories:
3. Human resources

including the mix (for example

demographic profile age, gender,
social class, etc. )
Skills
Knowledge of employees and other
people in an organisations
networks
4. Intellectual capital resource as
intangible resources
patents, brands, business systems

Resource-Based Approach

Resource-Based View (RBV) Theory

The RBV theory argues that firms have
resources which enable them to
achieve competitive advantage and
superior performance.
Resources that are valuable and rare
can lead to the creation of competitive
advantage.

Resource-Based Approach

Resource-Based View (RBV) Theory

Researchers have argued that internal
resources are more important than
external factors for a firm in achieving
and sustaining competitive advantage.
RBV theory asserts that resources are
basically what help a firm to exploit
opportunities and neutralize threats.

A Companys Competitive Capabilities

Capabilities
Capabilities refer to a company's ability
to exploit its resources.
Capabilities consist of processes and
routines that manage the interaction
among resources to turn inputs into
outputs

A Companys Competitive Capabilities

Capabilities
Example:
A company's marketing capability can
be based on the interaction among its
marketing specialists, information
technology, and financial resources a
capability is functionally based.
Thus, there are marketing capabilities,
manufacturing capabilities, and human
resources management capabilities.

A Companys Competitive Capabilities

Competitive Capabilities
Short development times in bringing
new products to the market
A strong dealer network
strong partnerships with key
suppliers
An R&D organization with the ability
to keep the companys pipeline full of
innovative new products
A high degree of organizational
agility in responding to shifting
products

A Companys Competitive Capabilities

Competitive Capabilities
A high degree of organizational
agility in responding to shifting market
conditions and emerging opportunities
A cadre of highly trained customer
service representatives
State-of-the-art systems for doing
business via the internet.

The Relationship between Company

Resources and Capabilities

6. H

Identifying a Companys Competencies

The term competence is used to mean
the skills and abilities by which
resources are deployed effectively
through an organisations activities and
processes.
A companys proficiency in conducting
different facets of its operations can
range from merely the ability to
perform an activity to a:
competence
core competence
distinctive competence

Identifying a Companys Competencies

Competence - is an internal activity
an organization performs with
proficiency.
specific skills and expertise (like
just-in-time inventory control or
picking locations for new stores)
and performed in a single
department or organizational unit
inherently multi-disciplinary and
cross-functional - A competence in
continuous product innovation. Ex.
bundled efforts of people and
groups with expertise in market
research, new product R&D, design

Identifying a Companys Competencies

Core competence - a proficiently
performed internal activity that is
central to a companys strategy
and competitiveness.
a highly valuable capability
knowledge-based
residing in people and in a
companys intellectual capital and
not in its assets on the balance
sheet
grounded in cross-department
combinations of knowledge and
expertise

Identifying a Companys Competencies

Distinctive competence

Opportunities in the Business Environment

Sizing

Competitive Advantage
Sizing up a firms resource strengths
and weaknesses and its external
opportunities and threats, commonly
known as SWOT analysis, provides a
good overview of whether a firms
business position is fundamentally
healthy or unhealthy.

Competitive Advantage
SWOT analysis is grounded in the
basic principle that strategy-making
efforts must aim at producing a good
fit between a companys resource
capability (as reflected by its balance
of resource strength and weaknesses)
and its external situation (as reflected
by industry and competitive
conditions, the companys own
market opportunities, and specific
external threats to the companys
profitability and market standing)

Competitive Advantage

Perceptive understanding of a
companys resource capabilities and
deficiencies, its market opportunities
and the external threats to its future
well-being is essential to a goodstrategy making.

Achieving and Sustaining

Competitive Advantage through
Resources & Capabilities

Resources like raw materials,

plant & machinery, infrastructure,
human, etc play a vital role in
achieving and sustaining the
organizations main goals and
objectives.

Achieving and Sustaining

Competitive Advantage through
Resources & Capabilities

Human Resource makes sure that

proper recruitment process is done
through hiring independent
consultants, to make sure
professional and competent
employees are placed in the
necessary place of work, which
brings about professionalism.
This brings about a level of
competence at work, which in turn
will increase the productivity of the
firm.

Achieving and Sustaining

Competitive Advantage through
Resources & Capabilities

Competitive advantage is
achieved and can be sustained
through consistent maintenance
and training of workers.
Resources may not be effectively
used in organizations
Employees are recruited
based on favouritism of
management employees and
not because of qualification.

Achieving and Sustaining

Competitive Advantage through
Resources & Capabilities

S Its not just about having the required

and quantity of resources, but knowing
how to utilise these resources or make
sure these resources are used
effectively (capability) to create a
required outcome of productivity.
it creates competence
competence of employees, plant and
machinery, consistent electricity
supply, adequate water supply,
qualitative raw materials, adequate
internet connection, clean working

Conclusion &
Recommendation

S
A firms goals and objectives
should align with its resources and
capabilities, leveraging its core
competencies and helping it
achieve its strategic intent.
the firms should be able to
identify the resources and
capabilities required to close the
gap between the strategic intent
and the current position.

Conclusion &
Recommendation

Resource and capability not only

provide the direction for business
strategy, but also are the key of
business performance and creating
advantage and the main source of
firms benefits.
Because resources and capabilities
play a dominant role in achieving a
sustainable competitive advantage,
managers would be expected to
design strategy to leverage firms

Introduction - Conceptual Framework

Work
Environment
Accomplishing
Tasks
Work Pressure
Levels of
Interest
Peer Pressure
Supervisory
attitude to
employees
Job and Work
attitude

Input

Proce
ss

Teamwork
Learning from
more
experienced
employees
Working
Together
Regular
Consultation
with Employees
Regular
feedback on
employees and
organization's
performance

Faster
Accomplishme
nt of Task
Work Efficiency
Improved
Relationship
Among
Employees
Enhanced
Respect
Increased
Productivity
Acquired Skills
Increased
Accountability
Employee
Independency

Outp
ut

Review of Related Literature and Studies

Economic
Employees Work
Impact on
Attitude
Organizatio
Government
nal
Employees
Performanc
Employees
e and in
Opinions
turn on the
Province of
Work
Private
Environment Palawan
Employees
30

Research
Design

Instrument

Procedure