Starbucks' Tangible Assets

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Introduction According to the text, the resource-based view "emphasizes the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage." The resources are divided into different categories. The first category is the tangible resources. These are "the physical assets that an organization possesses." They include human resources, physical resources and financial resources. There are also intangible resources, which range from the intellectual resources of the firm to its reputation and its trademarks/branding. Patents and copyrights are also included in the intangible resources. For a company that does franchising and licensing, it is easy to see how the company's brand becomes a significant resource for the creation of value. The firm also gains value through its competencies, which are "the attributes that firms require in order to be able to compete in the marketplace." Essentially, competencies are the skills by which the company converts its tangible and intangible assets into revenue. Core competencies are those that allow the organization to create competitive advantage. The most important sub-type of these are known as distinctive capabilities, because those are the ones that the organization has and its competitors do not have. Distinctive capabilities are an important source of sustainable competitive advantage. Starbucks' Tangible Assets There are a number of tangible assets at Starbucks. In terms of
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