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The competitive power of a company resource or competitive capability is, in part, determined by whether it o involves mastery of a competitively important technology. acts to lower the cost of performing value chain activities. involves primary rather than secondary value chain activities. o acts to eliminate a company's competitively important weaknesihes and deficiencies. has competitive value and is hard for rivals to copy. Question 10 A company's value chain consists of all the activities that it performs in seeking to deliver value to shareholders (via higher dividends and a higher stock price). concerns the basic process the company goes through in performing R&D and developing new products. identifies all of the different activities a company performs and indicates what percentage of the company's total profits is contributed by each of the various activities. consists of two broad categories of activities: the primary activities foremost in the company's scheme for creating and delivering value to customers and the requisite support activities that facilitate and enhance the performance of the primary activities. depicts all of the different activities a company performs and indicates how much each activity contributes to overall shareholder value. In a weighted competitive strength assessment like that shown in Table 4.3, the measures selected as indicators of competitive strength should be based on those factors and product attributes that buyers will find most appealing, and the importance weights assigned to each of these factors/product attributes should sum to 1.0. those factors that are the biggest determinants of a company's revenues and sales volume, and the importance weights assigned to each of these strength measures should sum to 1.0. industry key success factors and other telling measures of competitive strength or weakness; the importance weights assigned to each of these competitive strength measures should sum to 1.0. those factors that are the biggest determinants of company market shares, and the importance weights assigned to each of these market share determinants should sum to UUUUUUOOOOO 1.0. those factors that are the biggest determinants of company profitability, and the importance weights assigned to each of these strength measures should sum to 0 (because the sum of the weights of factors that negatively affect profitability should equal the sum of the weights that positively affect profitability) Once managers have identified the external threats to the company's well-being and future prospects, they should shift a big fraction of the company's most potent resources and competitive capabilities out of efforts to compete successfully against rivals and put them, instead, into fresh efforts to defend against the risks and possible adverse impacts posed by the external threats. evaluate what strategic actions can be taken to neutralize or lessen the impact of these external threats. use a portion of the firm's financial resources to fund actions aimed at converting some of the external threats into market opportunities. decide how much to lower the company's performance targets, given the potential severity of the external threats. determine whether to employ offensive strategies to capture the company's market opportunities or defensive strategies to combat the external threats. JUUOOUUODOUDODO