Chapter 3

• Internal Management Resources Foundation for strategic actions
• Manpower resources Assets for competitive advantage
• Strategic Positioning Utilization bundle of heterogeneous resources, capabilities and core competencies
• Customer Value  Global standards for product and services
• Uncertainty  Condition of the general industry
• Complexity Universe decision making process is complex as the interrelated environment is shaping so rapidly
• Intra-Organizational Conflict arises when managers cannot nurture and accept some group's decisions.
• Resources  internal capabilities of the firm which could in turn be the source of corporate core competencies.
• Corporate Resources  tangible and intangible
• Financial Resources cash flow assets that can be used in operation
• Organizational Resources organizational structures that plans, organize, directs, and control the operation
• Physical Resources physical assets
• Physical Resources plant facilities, machinery and equipment
• Technological Resources technology such as systems and procedures, patents, corporate trademarks, copyrights, and trade secrets
• Human Resources most important assets that company could depend on for competitive advantage
• Innovation Resources  bring new idea and strategies
• Reputational Resources  reputation of the firm has earned
• Capabilities tangible and intangible resources that are purposely integrate to achieve the desired results.
• Human Capital measures on its effectiveness in the utilization and integration in the deployment, carrying, exchange of information and knowledge
• Knowledge Base  grounded in organizational interventions that enhance human capital to great advantage
• Involvement  motivational process that will enhance the people's talent and skills
• Core Competencies internal and external resources and capabilities that serve as the source of competitive advantage over rivals in the industry
• Valuable Capabilities It refers to the state of how the firm can exploit opportunities and neutralize threats in the external environment
• Rare Capabilities Rare products are difficult to imitate.
• Imitation Cost Capabilities Costly capabilities are corporate competencies that other firms cannot easily develop.
• Unique Historical Condition  The firm's historical development at the right time and place.
• Social Complexity The firm's reputation with suppliers and customers is based on managers' and employees' trust and friendships.
• The Firm is Casually Ambiguous competitors don't understand how a company uses its capabilities to gain an edge
• Political Complexity and Government Regulations Political connection in business operation is a' competitive advantage as the power to elect officials is also dictated by the business community.
• Non-substitute Capabilities  no strategic equivalent to the firm's existing capabilities
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  Value Chain Analysis It is the value analysis of the process of understanding the parts of operation creating value for the firm and the analysis of cost position in creating products that gives the competitive advantage
• Material Outsourcing Outsourcing inputs to production are the process of getting materials from external sources and the trend continuous at the rapid pace in the new global economy.