Page 28 - SBL Integrated Workbook STUDENT 2018
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Chapter 3
Strategic capabilities
A key part of being able to create a strategy is understanding the internal position of
the organisation – what it is capable of and which assets and resources it controls.
This will help the business to decide what strategies are possible for it to undertake.
4.1 Resources
These can be identified using the M’s model (resource audit).
There are two main types of resource:
threshold – things the business must do well simply to compete in
the market. They do not give competitive advantage
unique – things the business does well that give a competitive
edge over rivals. Sometimes referred to as the ‘order-winners’.
4.2 Competences
These are groups of abilities, skills or resources that enable the
organisation to act effectively.
There are two main types of competence:
threshold – things the business must do well simply to compete in
the market. They do not give competitive advantage
core – things the business does well that give a competitive edge
over rivals. Sometimes referred to as the ‘order-winners’.
An organisation’s core competences tend to become threshold over
time as rivals copy them and customer needs and expectations change.
This means that they need to be monitored regularly.
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