Organisational Capability Analysis
Analysis of Organisational Capability
In order to develop successful
strategies to exploit the external opportunities or control the external threats(Due
to continual changes in external
environment) , analysis of an organisation’s capabilities is important for
strategy making which aims at producing a good fit between a country’s resource
capability and its external situation. Internal analysis helps us understand
the organizational capability which influence the evolution of successful
strategies.
Many of the issues of strategic
development are concerned with changing strategic capability better to fit a
changing environment. However, looking at strategic development from a
different perspective i.e. stretching and exploiting the organizations
capability to create opportunities, it again becomes important to understand
these capabilities. The above two perspectives together are called the Resource
Based View (RBV) of strategy.
Professionals from
different organizations suggest that a firm’s overall strengths and weaknesses
and its ability to execute are often found more important to its performance
than environmental factors. Internal capabilities and process execution at times
allow firms to gain competitive edge over competitors even with relatively
lesser resources and lesser advantageous position.
TYPES
OF RESOURCES
There are three types of
resources – Assets, Capabilities and Competencies, which have been identified under Resource Based View of the
firm (RBV). Strategic thinkers explaining the RBV suggest that the organizations
are collections of tangible and intangible assets combined with capabilities to
use those assets. These help organizations develop understanding these three
types of resources and help us to know how a firm’s internal strength and
weaknesses affect its ability to compete.
