When conducting an internal analysis, strategic managers should:
A) identify its internal resources and evaluate the quality of those resources.
B) only count something as a resource if the company is actively managing it.
C) always file for patents and trademarks on intellectual property.
D) exclude any resource as a source of competitive advantage if it isn't rare.
E) identify as many resources as possible, regardless of their value or rarity.

Question

Quizplus · Accepted Answer

When conducting an internal analysis, strategic managers should identify its internal resources and evaluate the quality of those resources. This involves identifying the company's strengths and weaknesses, assessing its capabilities and resources, and evaluating its potential to create value and sustain competitive advantage. Option B is incorrect because companies should consider all resources, even if they are not actively managing them. Option C is incorrect because not all intellectual property needs to be patented or trademarked, and this may not be the best use of resources in every case. Option D is incorrect because rarity is just one factor to consider when evaluating resources, and it may not be the most important one. Option E is incorrect because the goal of the analysis is to identify valuable resources, not just any resources.

When Conducting an Internal Analysis, Strategic Managers Should