The Difference Between a Resource and a Capability Is That

question 57

Multiple Choice

The difference between a resource and a capability is that

• A)a resource refers to a company's best-executed functional strategy and a capability refers to a company's best-executed business strategy.
• B)a resource refers to a company's most strategically important asset,whereas a capability refers to the basis of a company's competitive advantage over rivals.
• C)a resource is a competitively relevant internal activity that a firm performs especially well relative to other internal activities,whereas a capability is a competitively important activity performed by key strategic allies.
• D)a resource represents a competitive asset that is owned or controlled by the company,whereas a capability is a competently performed internal activity that is developed through the deployment of the company's resources.
• E)a resource usually resides in a company's technology and physical assets (state-of-the-art plants and equipment,attractive real estate locations,and so on),whereas a capability usually resides in a company's human capital,information capital,or organizational capital.

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