OO ee ee eee ea td ene Ok case use) financial resources. There are tangible and intangible eee BeOS eee ed one Ne Teer pee euetetes tec mC es Bete teh seca Tangible Resources Financial Resources + The firm's borrowing capacity + The firm's ability to generate internal | funds Organizational Resources - The firm's formal reporting structure and its formal planning, controlling, and coordinating systems Physical Resources + Sophistication and location of a firm’s | plant and equipment + Access to raw materials Technological Resources - Stock of technology, such as patents. | trademarks, copyrights, and trade | secrets |TABLE 3.2 Intangible Resources Human Resources + Knowledge + Trust + Managerial capabilities + Organizational routines Innovation Resources + Ideas + Scientific capabilities + Capacity to innovate Reputational Resources ~- Reputation with customers + Brand name + Perceptions of product quality, durability, and reliability + Reputation with suppliers + For efficient, effective, supportive, and mutually beneficial interactions and relationships TANGIBLE VS. INTANGIBLE RESOURCES + bate i + sass sCooyroneTANGIBLE RESOURCES ete eee eee ee Cr) mines. if the entire supply of diamonds were to be released onto Ce Rar LCm une eo kos UL cat ere teed ee aa ey Boeke nar es ee gee a that is released onto the world market. In doing so, Cartier is able to control the market price of Coruna ee cuca eyINTANGIBLES RESOURCES Lt) Tiga met ae eRe eel ole ER area a see Reged a tc eae ara ea a Aaa a aN neko factory, office building and bottling plant right down toa total loss of every desk, chair, and Praal Ma cn eesti cater Teac) CN eee eerste ag Breer ae a eae Re em ta ee tel ar ME ees relationships that it has developed over the eae Bn Rene terra ei} Pre eaeema res cette k Lee et newest csStes CAPABILITIES Capability is a firm’s capacity to Cee ieee Tul Pee Mane acct Roca aed desired end state. Capabilities result from the eae eM eran alia esources to achieve a desired end Ree ecu ee teu cae DM Cake Pee Renan Pe abilities that can be found in an organization's functional areas.eee erry CORE COMPETENCES ri a or Ce Cu en i ue eee A Secor Cone eet eer Ne Te eee eo ee eo em Maeda It embodies an organization's collective learning, particularly of how to coordin Eee eae ee ee aa ae * It creates sustainable competitive advantage for a company and helps it branch into a wide Peed at * Italso contribute substantially to the benefits a company's products offer customers:Sate To develop Core Competencies a company must: Isolate its key abilities and transform them into organization strengths; Compare itself with other companies with the same skills, to ensure that it is developing unique Coates DEM cu tein eee ee aR ae see Rd Coe ee ae ea Create an organizational road map that sets goals for competence building; Pr eee eRe a ce a er Sued Prec eeu RCM Ree tee saat ae rae ogee an Cee oe SiC ne ee Cee ea eee eee ee tea eR a aa core capabilities.Growing rapidly, Starbucks decided that it could use ar ey Pei ent oe oe COFFEE ditional g Tee or ad that it lacked the capabilities required to successfully edited distribute its products through this channel—and that aaa CS MU Us eee aay ad pee eee ee iyaiiaHe ee ete ea aed “ee IS eee eee et as ee. ee eee rs = Beate kane Sen tee) eee ee ee oe ey machines in its busy units. These machines reduced Starbucks’ cost while providing improved service to its cree eee eae eee ea ts supply chain and service capal Dee eect oe cS CE uct aed Re eae cs cas