Strategic Capability and Strategic Purpose in Organizations

Journal Entry
Student’s Name:
Institution:

2
Strategic capability
I have learned that competence are demonstrable skills needed to perform a job and this
need to be identified by organization in order to perform skills and knowledge gap of employees;
in dynamic capabilities an organization need to build and integrate its internal and external
competences to fit to changing business environment, to build on inimitable capabilities which
competitors cannot copy and rare capabilities which cannot be found easily but can be copied by
competitors. Organizational knowledge is an asset that cannot be given any value and entails the
collective knowledge which gives an organization advantage in business1.
Also, I learned that the resource base model takes the resources as the key to the
performance of an organization and strategic capabilities are the ability of an organization to
utilize all its resource in a strategic way to gain a competitive edge in the market. SWOT analysis
is a tool used to analyze the state of the organization in relation to its competitiveness in the
market. Threshold capabilities are the minimum capabilities an organization must have to
operate. Moreover, I learned that value is the worthiness of an item and value chain is the
addition of value to a product in all the processes from the initial stage to the final stage and
value system is a good system through which products undergoes2.
Strategic purposes
I have learned that the strategic purpose of the organization has to be demonstrated in its
vision, mission, and objectives because they set the pace for what the organization must do. In
addition, ownership model details the structure of the organization and its leadership style.
Organizations have different ownership model based on their strategic objectives3.
1 Rothaermel, F.T., 2013. Strategic management: concepts. New York, NY: McGraw-Hill Irwin.
2 David, F.R. and David, F.R., 2013. Strategic management: Concepts and cases: A competitive advantage approach. Pearson.
3 Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy (p.
55). Boston: pearson.