Analysis of Resources, Capabilities, and Core Competencies of Tesco

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4.2 Analysis of Resources, Capabilities, and Core Competencies Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies. 4.2.1 Tangible Resources Tangible resources include four different areas of importance. Tesco currently has strong financial, technical, and physical resources and moderate organizational capabilities. Financial Resources: Tesco maintains a strong financial forecast as shown below. • Revenue growth for Top Drive segment Q3 2011 was 83.6 million. Increase derived from sales increase, operating days for rental fleet, and after-market sales and service. Tubular Services revenue growth for Q3 2011 was 38.1 million, an increase of 9% compared to the prior quarter. This increase derived from increase customer demand for shale resources. Casing Drilling revenue Q3 2011 was 5.3 million compared to 3.9 million in Q2011. • Top drive operating margi... ... middle of paper ... ...13, the company acquired automated catwalk technology from Custom Pipe Handlers Canada, Inc. (nytimes.com, 2014). 4.2.4 Summary of Tesco Resources and Capabilities In summary, Tesco Corporation has strong resources and capabilities throughout. In the tangible section, there is a strong presence of financial, technical, and physical resources. In addition, there is a moderate presence of organizational capability. In the intangible section, Tesco Corporation has a strong presence in human, innovative, and reputation resources. Furthermore, Tesco has a valuable strong capabilities. The core competencies are key to a company’s sustainability. Tesco has a presence of a high level of capabilities. They are high in areas of design, technology, training, and research and development. In addition, Tesco has a superior presence in the area of manufacturing.

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