From Innovation to Cash Flows Prof.

Constance Lütolf-Carroll

Sample Reflection Exercise

Resources, Capabilities and Positions

My most relevant finding today is learning the differences among resources, capabilities
and firm positioning. I will reflect on these three concepts as they relate to my prior work
experience, my future development, and teamwork in general.

Conceptually, a resource is a productive asset (tangible or intangible) owned or controlled

by a firm. A capability is defined as the way in which a company or organization uses its
available resources in order to compete; it is also known as the “skills” of the firm; a
position is a structural advantage that a company enjoys, such as the largest market share
compared to rivals.

Previously, when examining my start-up’s strengths and weaknesses, I didn’t know to

separate these concepts into distinct categories. Now I realize that understanding how a
company’s strengths may be described by one of these categories can help managers decide
how to team up with other firms in order to maximize value. Upon further reflection, if I
could only turn back time by three years, I would have had my venture look into licensing
agreements with larger firms that could have more efficiently manufacture using our
patented process than we could have done. At the time, we were afraid of throwing away
our competitive advantage, but now I realize that the first step in protecting a firm’s
competitive advantage is to understand exactly what needs to be protected and the ways to
protect that advantage, especially if it pertains to intellectual property rights.

In my own development as a leader, I find that these concepts also apply on a micro level –
as teams and individuals also have resources, capabilities and positions. Knowing which of
these three items each group member brings to the table allows me to value everyone’s
contributions better and position myself most effectively to facilitate team cooperation that
yields better results.

Word count: 306