Sheffield Theatre Trust - Strategic Capabilities Johnson Scholes Whittington

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Analysis of STT's Strategic Capability

There are a lot of organisations working in a lot of markets. But there are multiple organisations in one market, so that there is a lot of competition. To help an organisation stand out from this competition, it needs strategic capabilities and competitive advantages. For one, it is important to know that not one organisation is exactly the same as another organisation. They all have different capabilities. Because these different capabilities, it is difficult for a organisation to copie the capabilities of another organisation. Also, if an organisation has capabilities which are hard to obtain, it has an competitive advantage.

Strategic Capability is 'the resources and competences of an organisation needed for it to survive and prosper' (Johnson, Scholes and Wittington, 2008: p.95). Resources can be divined into four categories. The first one is physical resources, the second is the financial resources. Then comes the human resources and the last category is intellectual capital. Also important are the threshold capabilities. These capabilities are 'those capabilities needed for an organisation to meet the necessary requirements to compete in a given market' (Johnson, Scholes and Wittington, 2008: p.97). But with only threshold capabilities an organisation cannot create a competitive advantage. The organisation also needs unique resources and core competences. Other aspects that are important are the value of strategic capabilities and the rarity of strategic capabilities. Furthermore, to make a capability exquisite, an organisation has to think about the complexity, the culture and history of the organisation and the causal ambiguity.

One of the most important things in an organisation is the organisational knowledge. This knowledge includes all the collective experience which the employees and staff members have gained while they were working for the (or another) organisation.

The following analysis is the...
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