Capability management in business Capability management in business Capability management is the approach to the management of an organization, typically a business organization or firm, based on the "theory of the firm" as a collection of capabilities that may be exercised to earn revenues in the marketplace and compete with other firms in the industry. "Capability Management" seeks to manage the stock of capabilities within the firm to ensure its position in the industry and its ongoing profitability and survival. Prior to the emergence of capability management, the dominant theory explaining the existence and competitive position of firms, based on Ricardian economics, was the
Capability management in business specializing in the various types of fabrication required to make the parts (business functions)″. According to these authors, some capabilities also include one or more brands or natural resource deposits. Indeed, ″the Coca Cola Company could not sell 1.9 billion servings a day in more than 200 countries were it not for the power of its brands″. In turn, for a farmer to be able to Produce Vegetables, he must have not only the right business functions, business processes, organizational units, know-how assets, information assets and technology assets, but also a piece of land (natural resource deposit) on which to