Explain what strategic "resources" and "competencies" are, how they are different from each other, and how they are interrelated.

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Resources are the things that an organization owns and the people that it employs. The resources are either tangible or intangible, and fall into the following categories.

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Tangible (visible, touchable, measurable): financial, organizational systems and structures, physical, technological.

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Intangible (unseen, amorphous): human, creative, perceptual.

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These resources have competencies - latent abilities to perform the activities that animate the value chain. The competencies are usually the product of combinations of resources, the most important being the human ones. A typical competency is reflected in a person operating a piece of equipment or interacting with a system.

Explain What Strategic "Resources" and "Competencies" Are, How They Are