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Resource and Capabilities

In: Business and Management

Submitted By georgethevictor
Words 1650
Pages 7
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The Resources of the Firm 1. It is important to distinguish between the resources and the capabilities of the firm: resources are the productive assets owned by the firm; capabilities are what the firm can do. individual resources do not confer competitive advantage; they must work together to create organizational capability. It is capability that is the essence of superior performance. 2. 3. Brand names and other trademarks are a form of reputational asset: their value is in the confidence they instill in customers 4. Different approaches can be used to estimate brand value (or “brand equity”). One method takes the price premium attributable to a brand, multiplies it by the brand’s annual sales volume, 5. The firm’s human resources comprise the expertise and effort offered by employees. Like intangible resources, human resources do not appear on the firm’s balance sheet – for the simple reason that the firm does not own its employees; 6. This appraisal occurs at the hiring stage when potential employees are evaluated in relation to the requirements of their job and as part of an ongoing appraisal process of which annual employee reviews form the centerpiece. The purposes of appraisal are to assess past performance for the purposes of compensation and promotion, set future performance goals and establish employee development plans. Trends in appraisal include greater emphasis on assessing results in relation to performance targets (for example, management by objectives) and broadening the basis of evaluation (for example, 360-degree appraisal). 7. Competency modeling involves identifying the set of skills, content knowledge, attitudes, and values associated with superior performers within a particular job category, then assessing each employee against that profile.[11] An important…...

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