Creating value for customers is the source of above-average returns for a firm

Methods of waste reduction and options to use renewable energy are aspects of the technological environment segment that firms should monitor

Analyzing the internal environment enables a firm to determine what it CAN DO by identifying resources, capabilities, and core competencies in the internal organization

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities. Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages

Any core competency has the potential to lose its value-creating ability

Generally, industries with stronger competitive forces have higher profit potential

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value

The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D

The need to meet quarterly earnings results causes managers to accurately examine the firm’s internal organization