Cooking Up Trouble

2527 WordsMar 1, 201311 Pages
Case #3: Cooking Up Trouble 1. What resources and capabilities did Martha Stewart living Omnimdeia appear to have prior to the trial and conviction? Have these resources and capabilities changed? Explain. * Martha Stewart living Omnimedia had powerful and trustworthy resources and the capabilities included: very extensive and specific merchandise lines that were advertised and sold in big distributors like Kmart and Sherwin Williams. This company had positioned its resources and capabilities well to exploit sociocultural and demographic trends. Now these capabilities have changed because these products were involved solely around Martha Stewart’s image. With her personal image being “stained” the company has a hard decision to…show more content…
Resources - Inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers * Tangible Resources – Assets that can be seen and quantified * Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights By themselves, resources do not create a strategic advantage for the firm. 2. Capabilities - can be defined as 1) organizational capabilities – the network of organizational routines and processes that determine how efficiently and effectively the organization transforms its inputs (resources) into outputs (products including physical goods and services) and 2) dynamic capabilities – an organizations ability to build, integrate and reconfigure capabilities to address rapidly changing environments. * Capacity to deploy resources that have been purposely integrated to achieve a desired end state. * Primary base for the firm’s capabilities is the skills and knowledge of its employees. * Just because the firm has a strong capacity for deploying resources does not mean it has a competitive advantage. 3. Core Competencies - * Resources and capabilities serve as a source of competitive advantage for a firm over its rival. * Not all resources and capabilities are core competencies. * Many suggest

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