Answer:
1. Porter's strategy typology includes a matrix which has the following components
1. Cost leadership (broad target)
2. Differentiation (broad target)
3. Cost Focus (narrow target)
4. focused differentiation (narrow target)
the above two strategies focuses on targeting the consumers on a broad level i.e for cost leadership the firm has to compete on lowering price from its competitors whereas in differentiation the firm focuses on creating a unique characteristic in its offering to attract the consumers and compete against the rivals.
2. The concept of core capabilities is that in order to compete and have an edge over your rivals firm has to have certain core competencies to successfully get an edge over its rivals. core capabilities may involve research and development by pharmaceutical to be a first comer in curing diseases. Such capabilities should have the characteristic that it can not be copied and can be sustained for a long term duration.
3. The criteria for core capability is:
a. it can not be easily copied (valuable)
b. it provides long term competitive advantage against rivals ( Rare)
c. it increases barriers to entry for new entrants (Organised)
b. is not easily substituted
all the above mentioned characteristics would provide a sustainable competitive advantage for an organisation.
4. <em>Human capital</em> has the potential to contribute towards competitive advantage as in the case of hospitals qualified doctors enhances patients confidence for treatment.
Human capital should be firm specific that contributes towards the goals and objectives of the firm. More unique and valuable human assets. for example faculty at universities contributes in research findings and helps in elevating students in their careers and academic performances.
5. The two strategies include:
High performance work staff:
it fosters the development of highly knowledgeable, motivated work staff.
Hr policies and practices enable them to increase their potential
Control oriented work system:
it minimizes the increase in knowledge and avoids variability in performance
6. The components of high performance work system (HPWS)
involves
a. sharing of knowledge among employees to increase their commitment
b. elimination of status and power to enhance collaboration
c. aligning employees performance to organisational goals i.e goal congruence
d. knowledge based jobs rather than per piece work
e. empowering employees
Explanation:
