Strategic Management
... companies implement the strategy are affected by the competitive, general and industry environments. Then the companies need to build up or attain the skills and assets to implement the strategy which the industry is attractive that recommends above-average returns are possible. Last the companies using the strengths to implement the strategy which results in greater returns. The Resource-based model recommends that above-average returns for any firm are mainly decided by characteristics inside the organisation. It concentrates (Hanson & Dowling, 2002, p23) on expanding or acquiring valuable capabilities and resources such as capital, equipment, the skills of employees, finances; which these can categorized into three categories as human, physical and organisational capital. Once companies (Hanson & Dowling, 2002, p24) recognize the resources and ascertain the capabilities; it comes to conclude the companies¡¦ potentials in terms of competitive advantage which have been located in an attractive industry. With the increasing effectiveness of the companies by utilising the resources and capabilities to implement the strategy,...