Chapter 5 - Analyzing resources & capabilities. This chapter presents the following content: The role of resources and capabilities in strategy formulation, the resources of the firm, organizational capabilities, appraising the profit potential of resources and capabilities, creating new capabilities. | Analyzing Analyzing Resources Resources amp amp Capabilities Capabilities OUTLINE The role of resources and capabilities in strategy formulation. The resources of the firm Organizational capabilities Appraising the profit potential of resources and capabilities Creating new capabilities. Shifting Shifting the the Focus Focus ofof Strategy Strategy Analysis Analysis From From the the External External to to the the Internal Internal Environment Environment THE FIRM THE Goals and INDUSTRY Values ENVIRONMENT Resources and Capabilities STRATEGY Competitors STRATEGY Structure and Customers Systems Suppliers The The Firm-Strategy Environment-Strategy Interface Interface Rationale Rationale for for the the Resource-based Resource-based Approach Approach to to Strategy Strategy When the external environment is subject to rapid change internal resources and capabilities offer a more secure basis for strategy than market focus. Resources and capabilities are the primary sources of profitability The The Evolution Evolution of of Honda Honda Motor Motor Company Company Honda Technical 4-cylinder 1st gasoline-powered Competes in Civic Hybrid Research 750cc car to meet US Low Isle of Man TT dual gasoline Institute motorcycle Emission Vehicle Standard motorcycle electric founded races Portable Power products Civic GS generator ground tillers marine natural 1 motorcycle st engines generators gas 98cc 2-cycle 405cc pumps chainsaws Dream D powered motor snowblowers cycle 1946 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 N360 mini Acura Car 4 cycle division Home co- car generation engine The 50cc 1000cc Supercub system Honda Goldwing Civic touring motor cycle Enters Indy Enters Formula 1 car racing First product Gran Prix racing Model A Honda FCX clip-on engine fuel cell for bicycles car Canon Canon Products Products and and Core Core Technical Technical Capabilities Capabilities Precision Fine Mechanics Optics 35mm SLR camera Plain-paper copier Compact fashion camera .
