Chapter 4: Managing Firm Resources
Conclusion
This chapter has covered a number of key issues that executives face in managing resources and ensuring their firms remain competitive. Resource-based theory argues that firms will perform better when they assemble resources that are valuable, rare, difficult to imitate, and nonsubstitutable. When executives can successfully bundle organizational resources into unique capabilities, the firm is more likely to enjoy lasting success. Different forms of intellectual property—which include patents, trademarks, copyrights, and trade secrets—may also serve as strategic resources for firms. Examining a firm’s resources can be aided by the value chain, a tool that systematically examines primary and secondary activities in the creation of a good or service and by a knowledge of supply chain management that examines the value added of multiple firms working together. While resource-based theory provides a dominant view for examining the determinants of firm success, other perspectives provide insight for understanding specific behaviours of firms within an industry. Finally, SWOT analysis is a simple but powerful technique for examining the interactions between factors internal and external to the firm.
Exercises
- Divide your class into four or eight groups, depending on the size of the class. Each group should search for a patent tied to a successful product, as well as a patent associated with a product that was not a commercial hit. Were there resources tied to the successful organization that the poor performer did not seem to attain?
- This chapter discussed WestJet Airlines. Based on your reading of the chapter, how well has WestJet done in bundling together the resources recommended by resource-based theory? What theoretical perspective best explains the competitive actions of most firms in the airline industry?
- Conduct a SWOT analysis of your college or university. Based on your analysis, what one strategic move should your school make first, and why?
Attributions
1911Handsglindemanfactory by Edward Lyman Bill is in the Public Domain (first);
20111409-OSEC-LSC-0010 – Flickr – USDAgov by U.S. Department of Agriculture is used under CC BY 2.0 License (second);
Swiss Army Knife Wenger Opened 20050627 by Francis Flinch is in the Public Domain (third)
Figure 4.6:
Beehive cake by Adventures of Pam & Frank is used under CC BY 2.0 Licence (first);
Fancy cake in the Covered Market – geograph.org.uk – 724440 by ceridwen is used under CC BY-SA 3.0 Licence (second);
Charm City Cakes by Fuzzy Gerdes is used under CC BY 2.0 Licence (third);
Duff goldman by Extended Image Photography is used under CC BY 2.0 Licence (fourth)
Figure 4.8:
Medikamente by Würfel is used under CC BY-SA 3.0 Licence (first);
Harlem Mickey Dz by Sam Smith is is in the Public Domain (second);
The Fabs by United Press International (http://commons.wikimedia.org/wiki/File:The_Fabs.JPG) is in the Public Domain (third);
KFC – Pressure-fried Chicken – Howrah 2014-03-23 9718 by Biswarup Ganguly (http://commons.wikimedia.org/wiki/File:KFC_-_Pressure-fried_Chicken_-_Howrah_2014-03-23_9718.JPG) used under CC BY 2.0 Licence (fourth)
Figure 4.9:
Patent Maschinenthermometer by Sikamarketing (http://commons.wikimedia.org/wiki/File:Patent_Maschinenthermometer.jpg) used under CC BY-SA 3.0 Licence (first);
Alexander Graham Bell by Moffett Studio (http://commons.wikimedia.org/wiki/File:Alexander_Graham_Bell.jpg) is in the Public Domain (second);
Leonardo da Vinci (ur Svenska Familj-Journalen) by Svenska Familj-Journalen (http://commons.wikimedia.org/wiki/File:Leonardo_da_Vinci_(ur_Svenska_Familj-Journalen).png) is in the Public Domain (third);
Lovastatin spacefill by SubDural12 (http://commons.wikimedia.org/wiki/File:Lovastatin_spacefill.png) is in the Public Domain (fourth)
Figure 4.11:
Trademark-symbol by Wilinckx (http://en.wikipedia.org/wiki/File:Trademark-symbool.png) is in the Public Domain (first);
1.20.10HobokenBen&Jerry’sByLuigiNovi2 by Nightscream (http://wikimediafoundation.org/wiki/File:1.20.10HobokenBen%26Jerry%27sByLuigiNovi2.jpg) used under CC BY 2.0 Licence (second);
Aspirine-1923 by Unknown (http://en.wikipedia.org/wiki/File:Aspirine-1923.jpg) is in the Public Domain (third);
Burberry check by Helix84 (http://en.wikipedia.org/wiki/File:Burrbery_check.gif) is in the Public Domain (fourth)
Figure 4.13:
Clap Clapboard Blank by AgatheD (http://wikimediafoundation.org/wiki/File:Clap_Clapboard_Blank.jpg) used under CC BY-SA 3.0 Licence (first);
Copyright by Unknown (http://en.wikipedia.org/wiki/File:Copyright.svg) is in the Public Domain (second);
EdisonPhonograph by Norman Bruderhofer (http://commons.wikimedia.org/wiki/File:EdisonPhonograph.jpg) used under CC BY-SA 3.0 Licence (third);
Newspaper advert copyright patent and trade mark by SasiSasi (http://en.wikipedia.org/wiki/File:Newspaper_advert_copyright_patent_and_trade_mark.jpg) is in the Public Domain (fourth);
Girl with a Pearl Earring by Johannes Vermeer (http://en.wikipedia.org/wiki/File:Girl_with_a_Pearl_Earring.jpg) is in the Public Domain (fifth)
Figure 4.15:
Doughnut by Angeldm (http://commons.wikimedia.org/wiki/File:Doughnut.jpg) used under CC BY-SA 3.0 Licence (first);
US-FBI-ShadedSeal by Federal Bureau of Investigation (http://commons.wikimedia.org/wiki/File:US-FBI-ShadedSeal.svg) is in the Public Domain (second);
WD-40 Smart Straw by ZooFari (http://en.wikipedia.org/wiki/File:WD-40_Smart_Straw.JPG) used under CC BY 2.0 Licence (third);
Zynga unleashed by ftchris (http://commons.wikimedia.org/wiki/File:Zynga_unleashed.jpg) used under CC BY 2.0 Licence (fourth);
Sriracha sauce by Glane23 (http://commons.wikimedia.org/wiki/File:Sriracha_sauce.JPG) used under CC BY-SA 3.0 Licence (fifth)
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