________ helps a firm understand which of its resources and capabilities are likely to be sources of competitive advantage.
A) Competitive analysis
B) Internal analysis
C) Strategic choice
D) External analysis

Question

Quizplus · Accepted Answer

Internal analysis is the process of examining a firm's resources, capabilities, and competencies to understand which ones can lead to sustainable competitive advantage. By conducting an internal analysis, a firm can identify its strengths and weaknesses relative to its competitors and develop strategies to improve its performance. Competitive analysis (A) and external analysis (D) are important components of strategic analysis, but they focus on the external environment rather than the internal capabilities of the firm. Strategic choice (C) is the process of selecting the best course of action based on the results of the internal and external analysis, but it does not directly help firms understand their resources and capabilities.

________ Helps a Firm Understand Which of Its Resources and Capabilities