1. The two most important strategic resources are a firm\'s core competencies an
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Question
1. The two most important strategic resources are a firm's core competencies and their strategic assets. Please define each and give two examples of each using existing companies.
2. The most important thing that any entrepreneur can do to build a strong ethical culture in their organization is to lead my example. Please define ethical behavior and give two examples of companies that are doing or have done the right thing so much so that their ethical culture has become a competitive advantage.
3. Financial management deals with two things: raising money and managing a company’s finances in a way that achieves the highest rate of return to maximize profit. We discussed 8 questions that every entrepreneur must address to do so. Please discuss 4 of these questions in detail.
4. To maximize profit, an entrepreneur must meet these four financial objectives: profitability, liquidity, efficiency, and stability. Please define each and give an example from an actual company for each.
5. Distinguish between debt financing and equity financing. Give at least two examples of each. What are three uses of funds?
Explanation / Answer
Answer 1:
The two most important strategic resources are
Firm's core competencies: The firm’s core competency is defined as the competency of the firm which provides the competitive advantage in the market and provides the growth and success to the firm in the current and future time period. The firm fully depends upon his core competency and this core competency only drives the organization to achieve their business goals and target revenue for the firm.
Example :
Tata Motors Ltd – This is an Indian automobile OEM manufacturer, the core competency of this gaint organization is low cost products and high warranty and service support in the India Market.
ADP Organization – ADP organization is core competent in human resource management practices, as they are skilled in human resource management at the global level.
Firm’s strategic assets: Strategic assets are the resources and tools that facilitate the firm to achieve the target business goals and provide the success path for the firm. The strategic assets like market image, brand value, competent resources, competent technologies, competitive advantages etc. which helps the firm to achieve the superior results are known as firm’s strategic assets.
Tata Motors Ltd - Brand value: the brand value and market position of the Tata Motors is a strategic asset for the organization which drives the higher growth and success for the organization in the India market.
Apple Innovation: Innovation and creativity are the strategic asset for the Apple organization is these provides futuristic success and growth for the Apple organization.
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