In this blog I will talk about subject materials that I have learned during week 5 and 6 of the term.

Sustainable strategy

In week 4, I learned about “Strategic Capabilities – part 1”, containing SWOT/TOWS, value chain, and how manager could enhance or improve the capabilities of organisation through understanding threshold and distinctive capabilities of the organisation.

Manager of the company should understand the strengths (S), weaknesses (W), opportunities (O), and threats (T) of the company in order to stay competitive and sustainable in the market. Additionally, TOWS framework will help the manager to identify what strategic can be formed through that analysis, such as using strengths to take opportunity in the market, or to minimise the threats.

Furthermore, manager could also improve the overall performance of the organisation by comprehending the relations between threshold capabilities with the resources and competences of the organisation; as well as the capabilities for competitive advantage of the organisation with its resources and competences. The framework below will illustrate more in detail.

 

Resources Competences
Threshold Capabilities Threshold resources: tangible and intangible Threshold Competences
Capabilities for competitive advantage Distintive (Unique) resources: tangible and intangible Distinctive or Core Competences

 

 

Threshold capabilities are the essential capabilities that allow the organisation to operate within the market. This capabilities need to be able to change as the circumstances of business environment change so as to be sustainable in the market. Besides, threshold resources are the essential resources that organisation should have in order to fulfil / meet the basic needs of customers. For example, bank needs to have ATM machines and branches in order to provide products and services to its customers.

 

Distinctive resources are resources, which could provide competitive advantage to the organisation; means that those resources are not easy to be copied or obtained by other competitors. Regarding to distinctive competences, this refers to a better skill or ability that one organisation has than its competitors and hard to imitate or copy at the same time.

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