Question

strategic management

What four criteria must resources/capabilities satisfy to become core competencies? Why is it important for firms to use these criteria to evaluate their resources/capabilities? Choose a company that you are familiar with. Apply these four criteria on five resources/capabilities of this company. Explain your findings.

Answer 1

STRATEGIC MANAGEMENT

It is the ongoing planning, monitoring,analysis and assessment of all necessities within an organization need to meet the goal.

Criteria must resources/capabilities satisfy to become core competencies?

• They should be valuable
• They should be rare
• They should be inimitable
• They should be non-substitutable

It is important for a firm to use the above four criteria to ensure that its core competencies are difficult to copy and reproduced by its competitor, otherwise, these firm will go bankrupt.

EXAMPLE=APPLE

Application of four criteria in APPLE resources and capabilities in below table-

RESOURCES/ CAPABILITY	VALUE	RARE	INIMITABILITY	NON-SUBSTITUTABLE
Business process automation	--------
Competitive employee compensation package	--------	--------
HR Capability for innovation	----------	--------
Product mix diversity	--------	---------	--------
AI Capabilities	--------	---------	---------	---------
Access to user information	-------	------	-------	-----------