Hypothesis Formulated by Ulrich and Smallwoods Capitalizing on Capabilities - Assignment Example

Running header: core capabilities Student’s name: Instructor’s name Subject code: Date of submission 1. The problem discussed in the research article and the hypothesis formulated by Ulrich and Smallwood’s capitalizing on capabilities The problem discussed in the research paper is that of organizational capabilities. The research article attempts at explaining what organizational capabilities are and how organizational leaders can evaluate and build the capabilities they need in their bid to create intangible value for the organization. In this regard, the authors hypothesize that organizations need to develop organizational capabilities in a bid to overcome the competition they face today and in future. They see the capabilities as the collective skills, abilities and expertise of an organization. In this regard, the authors view organizational capabilities as representing the identity of a particular firm as viewed both internally by internal stakeholders such as the employees and externally for instance by customers and investors. To them, organizational capability represents the firm’s ability to perform better than its competitors through use of distinctive yet difficult to replicate set of business attributes. In addition, organizational capabilities result from the company combining and delivering on individual’s competence and abilities to enable it turn its technical knowhow into results. The authors have hypothesized 11 capabilities that organizations should seek to have rest it will be faced by dysfunction and competitive disadvantage. These include talent, Speed, shared mindset or brand identity, accountability, collaboration, learning, leadership, Customer connectivity, strategic unity, innovation and efficiency. The research paper has thus suggested that organization try to maximize on at least three of the above capabilities in a bid to remain competitive. They show the importance of organizations carrying out capabilities audit in a bid to better themselves while suggesting how this should be done. 2. The need for the study in the article This study is of great importance to the university program and has great applicability to the United Arab Emirates /GCC environment. On completion of the university program, one is expected to either become a business person or operate an organization that is business oriented. The business environment of the day has become more and more competitive and any business organization that does not realize where it can compete better is not likely to succeed in the business environment. On the other hand, the GCC also has its economic arm which is all about business. As such, the GCC also has to know what its capabilities are so that we can be better placed to trade within the GCC as well as with other economic blocks. In this regard, the importance of the study to the program and to the GCC is that it brings out the importance of ensuring that organizations develop their capabilities and continually carry out capabilities audit in a bid to offer better services hence becoming more competitive now and in the future. 3. The methodology used in the study The main methodology used in the study is case study. In this regard, the research article has analyzed how two companies carried out their capabilities audit. The first company is Boston scientific a medical services manufacturer. The company uses a survey in conducting its capabilities audit on its international division. The survey makes use of 20 questions with spaces for comments. The audit results in data that is analyzed in a scale out of 5 in a bid to see how well or bad the company performs in its core capabilities. A similar study has been carried on Intercontinental hotels. Both of these audits result in management taking steps that lead to improved organizational performance as a result of strengthening individual organization’s core competences. 4. Critique on the article including the study’s assumptions, limitations and potential for future research In making their argument, the authors make a number of assumptions which include that every organization has its own core capabilities which are the main determinants of what organizations are. In this regard, it is assumed that those organizations that do not realize their core competencies can never survive in the market. It is also assumed that every organizational stakeholder has a role in making organizational core competencies and hence in deciding what the organization becomes. In this regard, the authors assume that it is possible to make every stakeholder pursue similar organizational goals and objectives without being detracted by personal goals and objectives as well as external environment. Finally, the author’s assume that it is possible to measure organizations’ core capabilities in a scale say out of 10 and that core competencies are similar as they have suggested 11 core competencies exist across firms and organizations. In making the above assumptions, the study embodies some limitations. For instance, the assumption that core capabilities make an organization what it is seems unfair given that many factors combine to make the organization what it is. Such an assumption therefore diminishes the role of other factors such as capital, financing and marketing in the organization. The assumption that organizations must realize their core competencies for them to succeed in the market is also short cited. Surviving in the market would also depend on the business environment, the kinds of goods and services being offered, the level of financing and forces of demand and supply among other factors. Finally, organizations must realize that external factors also contribute to whether organizations are able to achieve their core competencies or not. For instance, external factors and personal goals and objectives as well as employees attitude will determine whether organizations realize and successfully pursue their core competencies. Future research should therefore focus on the role individual stakeholders should play in ensuring that organizations’ achieve their core capabilities. In addition, there should be a study aimed at researching on how organization core capabilities should combine with other factors in ensuring organizational success. Other areas of research should include how to best measure organizational core capabilities for all organizations so that different organizations do not employ different measures in assessing their capabilities. This would ensure comparability among organizations in the same industry. The roles of other factors such as finance in supporting the organization achieve its core competencies and hence success should also be studied. In other words, organization’s core competencies should never be studied in isolation of other factors. 5. Summary and conclusion This research article was aimed at exploring the importance of core capabilities to the organizations success in the current competitive market environment. In addition, the paper has emphasized the importance of firms carrying out capabilities audit so that they can find out areas that they need to pay more emphasis to and hence become better positioned for the competitive environment. In the current competitive environment, customers, potential employees, investors among others do not respect companies based on how they are structured but rather on their capabilities which is their ability to innovate and respond to the ever changing customer needs. In other words, organizational capabilities are vital intangible assets that make organizations what they are. In this regard, organizations that do not realize and hence develop their core capabilities are bound to fail in the current competitive environment. In a bid to know their capabilities and hence develop them more, organizations should endeavors to always carry out their capabilities audit. Such an audit will help organizations know which is their best capability while strengthening on their areas of weakness. Of the 11 capability areas mentioned above, the authors have suggested that successful organizations should endeavor to be best in at least three areas while not ignoring the rest since they are all interdependent. As such, a well carried out capability audit should ensure that the organization undertake changes affecting the capability areas it is most reliant on hence resulting in a better performing company. However, in carrying out capability audits, it has been suggested that firms excel in a few areas as opposed to diffusing leadership energy over all. Companies should also try benchmarking with the best not necessarily in their industry in their attempt to become better. In addition, it is important to involve both internal and external stakeholders in carrying out capability audit if better results are to be obtained. In carrying out the research and making assumptions however, a few shortcomings have been noted as explained above. In this regard, future areas of study in the same topic have been suggested. As such, it is expected that future studies will avoid such limitations while acting to reinforce the current study. In this regard, organizations will be able to discover and develop their core competencies while not ignoring other areas that contribute to their success. This way, we can achieve organizations that are better positioned to counter the high level of competition existent in the current competitive marketing environment. In addition, this research contributes to the university program and the GCC by making them more enlightened on the role played by organizations’ core capabilities hence making them better players in the ever competitive environment. In other words, all organizations ought to focus on capitalizing on their core capabilities in a bid to become better players in the increasingly competitive environment. References: Ulrich, D&, Smallwood, N2004, Capitalizing on capabilities, Harvard Business Review Read More