The document discusses organizational capabilities as a firm's ability to manage resources and people to achieve a competitive advantage. It outlines the importance of internal processes, flexibility, customer relationships, and a knowledgeable workforce in creating unique competencies. Additionally, the document details elements of capabilities, internal environments, types of capabilities, and the application of SWOT analysis for effective resource management.

1. Organizational
Capabilities

2. Organizational Capability
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for
meeting customer needs
• creates organization-specific competencies that
provide competitive advantage since they are
unique
• ensures that employee skills and efforts are
directed toward achieving organizational goals
and strategies

4. Importance
• Competitive Advantage :-
Organizational capabilities provide a company with an
advantage in the marketplace. When an organization
continues to create new capabilities and develops
existing ones, it will maintain the advantage over its
competitors.
• Improved Customer Relationships :-
Good customer relationships ensure the continued
growth and competitiveness in the market.

5. • Flexibility and Responsiveness :-
The responsiveness of an organization is its ability to
change in response to customer demand
• Knowledgeable Workforce :-
The skills and knowledge of a company's workforce
allow the organization to direct those skills to achieve the
business's goals

6. Four elements of capabilities
• Shared mindset
• Management practices
• capacity for change through understanding and
managing organizational systems
• Leadership at all levels in the organization

7. SHARED MINDSET
• Common understanding and goals of ends
(strategies) and means (processes, work
systems, activities)
• Congruence between customer and employee
expectations

8. MANAGEMENT PRACTICES
• Policies, programs, operating procedures, and
traditions that guide work
• Transform individual behavior to create
customer satisfaction and consistency in how
customer is treated
• Complement and integrate with one another to
create common expectations, behaviors, and
goals

9. CAPACITY FOR CHANGE
• Ability to reduce cycle time of all activities

10. LEADERSHIP
• Owns passionately a vision which is promoted
both within and outside the organization
• Translates external conditions into vision for
organization and how employee must act to
attain vision
• Empowers individuals at all levels within the
organization to act within his or her domain

11. Internal Environment
• The internal environment of an organization
deals with the management of resources like
human resources, physical resources,
technology, monetary resources and others that
constitute the organization in order to
implement or execute a strategy.

12. Kinds of capabilities
• Financial Capability Profile
• (a) Sources of funds
• (b) Usage of funds
• (c) Management of funds
• Marketing Capability Profile
• (a) Product related
• (b) Price related
• (c) Promotion related
• (d) Integrative & Systematic

13. • Operations Capability Factor
• (a) Production system
• (b) Operation & Control system
• (c) R&D system
• Personnel Capability Factor
• (a) Personnel system
• (b) Organization & employee characteristics
• (c) Industrial Relations
• General Management Capability
• (a) General Management Systems
• (b) External Relations (c) Organization climate

14. SWOT ANALYSIS
• Identify & classify firm’s resources-S&W
• Combine firm’s strength into specific capabilities –
Corporate capability- may be distinctive competence
• Strategy that best exploits the firms resources
• Identify resource gaps & Invest in upgrading