The 12 Capabilities - to Function and Compete in the Competitive Marketplace [CLOSE]

Since 1998, Jean-Claude Larreche, the Alfred H. Heineken Chaired Professor of Marketing at INSEAD in Fountainbleau, France, has created and published an annual survey called "The Report on Competitive Fitness of Global Firms" along with a scoring framework and methodology around evaluating key market-based capabilities driving the success of the modern firm.
The framework addresses three key issues concerning market-based capabilities:
  • the concept measurement;
  • the emergence of capability gaps in specific business sectors; and
  • the development of distinctive capability profiles.
The Methodology is called Market Effectiveness Capabilities Assessment (MECA) and contains 182 indicators to estimate scores on the following 12 key capabilities.
1. Defined Mission & Vision: Are there broad lines & targets that effectively guide employees in shaping the firm of the future?
2. Customer Orientation: Is satisfaction of customers' needs an important concern broadly shared within the firm?
3. Corporate Culture: Are there fundamental beliefs & values broadly shared by members of the firm?
4. Organization & Systems: Are the structure & systems of the firm effective in helping management to steer the firm in the desired direction?
5. Planning & Intelligence: Are external & internal information effectively gathered & processed to help management steer the firm in the desired direction?
6. Human Resources: How effective are the recruitment, development, deployment & mobilization of human resources?
7. Technical Resources: How effective are the acquisition, development, deployment & administration of tangible resources?
8. Innovation: How effective are the acquisition, development & implementation of new ideas in all facets of the firm's operations?
9. Market Strategy: How effective are the selection & strategic management of key products and markets?
10. Marketing Operations: How effective is the management of marketing activities?
11. International: How effective is the international management of human resources, technical resources, products & markets?
12. Performance: How effective is the firm in obtaining positive results from its actions?
 
From the study published by Financial Times as "The Competitive Fitness of Global Firms 2002". See Corvaltec.com site Also, an excerpt from an article referenced below:
"Products and technologies are often visible and well defined and can be imitated by those ready to make the investment. By contrast, capabilities are often intangible and made-up of elemental parts - innovation, human resources and corporate culture."
- Viewpoint: Jean-Claude Larreche, "Beyond Strategy: Market-based Capabilities", Page 87-88 of Business The Ultimate Guide, Bloomsbury Press, 2002.

[CLOSE]