The Nature Of Firm’s Internal Environment Capabilities And Competencies Dynamics Evaluation: Feasible Strategy Crafting Imperatives

John E Chikwe,Chris Sam Biriowu

doi:10.37547/tajmei/volume02issue10-06

Abstract

The study strategically evaluated the nature of firm’s internal environment capabilities and competencies dynamics that will ensure feasible strategy crafting. The understanding and analysis of the challenges posed in the internal environment helps strategists to make strategic decisions relating to the resources, capabilities and core competencies since they are non routine. In order to facilitate the development and effective usage of core competencies, managers/strategists are advised to have courage, self-confidence, integrity, the capacity to deal with uncertainty and complexity, and a willingness to hold people accountable for their work, as well as their being accountable themselves. This should be necessitated because the competitive advantage and firm’s performance are often strongly related to the resources firms hold and how they are managed. This is found to be so, since human beings are strategic critical resource that produces innovation, develops policies and strategies, and firm’s competitive advantage enhancement. The study further explored some related perspectives of valuable capabilities, personnel and organizational competencies, resources tangibility and intangibility, as well as competitive advantage sustainability criteria that will guide feasible strategy crafting. The study recommends amongst others, that organization managers should as a matter of necessity, monitor and evaluate the internal environment capabilities and competencies in order to have fit with that of external resources dynamics to enhance feasible strategy crafting.

Highlights

The internal environment of an organization consists of the variables that are within the organization such as strengths, weaknesses, structure, culture, resources, key functions within the enterprise and organization’s climate
As we are today witnessing from the happenings in the business world environment, several factors in the global economy, including the rapid development of the internet’s technology capabilities, some aspects of globalization in general have made it increasingly difficult for firms to develop competitive advantage that can be sustained for an envisaged period of time
In understanding and analyzing the challenges posed in the internal environment, we should understand that the strategic decisions managers make relating to the resources, capabilities, and core competencies are non routine as Hough and White (2003), have relatedly pointed out

Summary

INTRODUCTION

The internal environment of an organization consists of the variables that are within the organization such as strengths, weaknesses, structure, culture, resources, key functions within the enterprise and organization’s climate. Firms should have the correct structure, and the appropriate resources to build innovation capabilities This as suggested is so because, the probability of developing a sustainable advantage increases when the firms use their own unique resources, capabilities, and core competencies on which to base and implement their strategies. In understanding and analyzing the challenges posed in the internal environment, we should understand that the strategic decisions managers make relating to the resources, capabilities, and core competencies are non routine as Hough and White (2003), have relatedly pointed out Those strategic decisions have ethical implications (Robertson and Crittenden, 2003), and significantly influence the firm’s ability to earn above-average returns (Christensen and Raynor, 2003). There are four-basic types of tangible resources as opined by Barney (1991), and these are:

Physical resources

Human Resources

CONCLUSIONS