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TMA02 - Q3 - Analyse the resources and capabilities of the company and how…

- - - - An organisation’s capabilities refer to its capacity to deploy its resources; organisations ‘bundle’ resources to build capabilities. Put simply, it is how the resource is used that represents the link between a resource and a capability.
    - - An organisation’s resources refer to the productive assets that it owns and controls; these include tangible resources (such as cash, equipment and land), intangible resources (such as patents, reputation and culture) and human resources (such as skills and motivation).
    - - Sustainable competitive advantage is based on resources or capabilities that are valuable, rare and inimitable and the firm is organised to make the most of their full competitive potential (an analysis of resources and capabilities according to these characteristics is also called VRIO analysis, which will be introduced in Week 10).
        Sustainable competitive advantage is when competitive advantage is durable – it will outlive attempts by existing or potential competitors to duplicate the benefits of the firm’s strategy, while the economic conditions maintain the value of both the resources and the strategy they support.