If We Do Not Change Direction, We Will End Up in the Same Place that the Crisis is Taking Us
Confronting a No-Growth Economy The main problem facing the global economy is that growth has stalled and excessive money printing has led to inflation. There is a saying which goes something like this, if you do not change direction, you are likely to end up in the same place that your life is taking you […]
Role of Attitude and Personality in Sales Management
The art of achieving the sales targets within the desired time frame through effective planning and budgeting refers to sales management. Effective sales management ensures timely generation of revenue and profitability of the organization. Sales professionals in simpler words are the face of any organization and have the responsibility of making a particular brand popular […]
What are Compulsory CSR Commitment Policies and Their Effectiveness and Pitfalls
What are Compulsory CSR Commitments and How They Work in Corporates In many multinational companies such as Goldman Sachs, SAP, and P&G, employees are expected to spend time on Corporate Social Responsibility activities and in turn, they are rewarded or penalized based on whether they have undertaken the necessary commitments with regards to CSR activities. […]
Marketing Strategy – Meaning and Its Importance
What is Marketing Strategy ? Marketing strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization. It provides a blueprint for attaining these marketing objectives. It is the building block of a marketing plan. It is designed after detailed marketing research. A marketing strategy helps an organization to concentrate it’s […]
If Your Brand is Losing Out, Where Does the Problem Lie ?
We live in a world that is fast changing. What was relevant last year doesn’t hold ground this year. Changes are taking place in every sphere of life be it in terms of society, values and lifestyle or the products and services that we consume. Post industrial revolution, our life style changed dramatically with the […]
The activities and processes of the organization utilize certain assets. These assets are called resources. These resources can be created within the organization. They form the internal resources. Such generated resources are organization-specific. Otherwise they could be obtained externally from the suppliers available in the resource markets. They form the external resources. The externally obtained resources are organization-addressable.
In addition, resources can be categorised as specific or non-specific. Those resources which can only be used for extremely specialized intentions and are significant to the organization in adding value to goods and services are called specific resources.
Non-specific resources are less specific and are less significant in adding value. Also resources can be broadly classified as tangible and intangible. The physical assets that an organization possesses are called tangible resources. The physical resources, human resources and final resources come under this category.
The intellectual resources, technological resources and the organizational reputation together form the intangible resources. The patents and copyrights of the organization are typical examples of intellectual resources. The innovation capacity and innovation speed are examples of technological resources. Reputation is basically good-will that the organization has acquired among the customers. It is a critical resource of an organization.
An organization should posses some characteristics in order to have the ability to compete with other organizations in the market place. These characteristics form the competencies of the organization.
For any organization to survive in an industry competencies are must. At the same time competencies cannot be useful to an organization when they stand alone. It is when they combine together in the right combination that they help the organization to attain competitive advantage.
For instance consider an information technology organization. For this to compete in the software industry it should posses the competencies to write programs and design tools which have to be combined together to provide it with the competitive advantage in the industry.
An organization’s resources which are critical in imparting it with competitive advantage are called distinctive capabilities. When the capabilities originate from an attribute which other firms do not have then they form an organization’s distinctive capabilities. In addition to having a distinctive characteristic it should also be sustainable and appropriable.
When a distinctive capability is able to continue functioning over a period of time it is said to be sustainable. When the organization which holds a distinctive capability is able to benefit mainly from it then it becomes appropriable.
An organization can derive the distinctive capabilities mainly from the organizational architecture, organization reputation and innovation. The relationships between the organization and the stakeholders are critical in developing these three aspects of the organization.
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