AFI Paper 4: Internal Analysis, ARC (Assets, Resources, Capabilities) and Sustainable Competitive Advantage

(use the same firm/industry for AFI Paper 3 that you used in your earlier AFI Papers 1&2)

[Caterpillar Inc.]

Looking at your firm try to identify the most important, the most salient, ARC items possessed by your firm. These ARC items should be the source of a firm's competitive advantage (if the firm has one).

Resource/Capability #1 [Enter a description of what you see to be your most important ARC item. Describe a specific instance of how this ARC item creates value and or reduces cost]

Resource/Capability #2 [Enter a description of what you see to be your second most important ARC item. Describe a specific instance of how this ARC item creates value and or reduces cost]

Resource/Capability #3 [Enter a description of what you see to be your third most important ARC item. Describe a specific instance of how this ARC item creates value and or reduces cost]

Analyze your three most salient resources / core competencies using the VRIO framework (below).

Valuable

Rare

Inimitable

Organized

Advantage?

ARC #1

Yes/No and why

Yes/No and why

Yes/No and why

Yes/No and why

Advantage?

ARC #2

Yes/No and why

Yes/No and why

Yes/No and why

Yes/No and why

Advantage?

ARC #3

Yes/No and why

Yes/No and why

Yes/No and why

Yes/No and why

Advantage?