Meaning and Significance of Corporate Crisis Management
What is Corporate Crisis Management ? We live in a world that is uncertain and unpredictable. Hence, our best-laid plans can go bust because of a variety of reasons, not many of whom are under our control. This is the case with corporates as well and especially so in this turbulent age where the global […]
Brand Categories
Every marketing management student would have heard the story about origin of branding, that it was initially used to identify and isolate a particular stock of cattle in the west. From the Wild West, branding as a concept has grown and changed beyond its original purpose. Today brands have become the common tool for us […]
Point of Sale Financing
There are several credit products which are being sold to the modern consumer. There are mortgages, car loans, education loans, and even credit card loans which have been aggressively sold over the years. The markets for most of these loans have now become saturated. This is the reason the banks and other financial institutions have […]
Usage of Quantitative Tools in Social Content
Social Media as a platform for marketing provides for continuous innovation, thanks to the evolving technology. No other medium gives you the kind of direct and interactive opportunity as do the Social Media Channels. Though the medium is seen to be belonging largely to the audience who discuss, participate and contribute to creating content, online […]
Market Research Focus Groups
Focus groups are also known as group interviews or group discussions. They are used to understand the attitude or behaviour of the audience. Six to twelve individuals are selected and either one or two moderators (those who lead the discussions) are selected. If there are two moderators, they will adopt opposite positions. It is the […]
The activities and processes of the organization utilize certain assets. These assets are called resources. These resources can be created within the organization. They form the internal resources. Such generated resources are organization-specific. Otherwise they could be obtained externally from the suppliers available in the resource markets. They form the external resources. The externally obtained resources are organization-addressable.
In addition, resources can be categorised as specific or non-specific. Those resources which can only be used for extremely specialized intentions and are significant to the organization in adding value to goods and services are called specific resources.
Non-specific resources are less specific and are less significant in adding value. Also resources can be broadly classified as tangible and intangible. The physical assets that an organization possesses are called tangible resources. The physical resources, human resources and final resources come under this category.
The intellectual resources, technological resources and the organizational reputation together form the intangible resources. The patents and copyrights of the organization are typical examples of intellectual resources. The innovation capacity and innovation speed are examples of technological resources. Reputation is basically good-will that the organization has acquired among the customers. It is a critical resource of an organization.
An organization should posses some characteristics in order to have the ability to compete with other organizations in the market place. These characteristics form the competencies of the organization.
For any organization to survive in an industry competencies are must. At the same time competencies cannot be useful to an organization when they stand alone. It is when they combine together in the right combination that they help the organization to attain competitive advantage.
For instance consider an information technology organization. For this to compete in the software industry it should posses the competencies to write programs and design tools which have to be combined together to provide it with the competitive advantage in the industry.
An organization’s resources which are critical in imparting it with competitive advantage are called distinctive capabilities. When the capabilities originate from an attribute which other firms do not have then they form an organization’s distinctive capabilities. In addition to having a distinctive characteristic it should also be sustainable and appropriable.
When a distinctive capability is able to continue functioning over a period of time it is said to be sustainable. When the organization which holds a distinctive capability is able to benefit mainly from it then it becomes appropriable.
An organization can derive the distinctive capabilities mainly from the organizational architecture, organization reputation and innovation. The relationships between the organization and the stakeholders are critical in developing these three aspects of the organization.
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