Problem: As part of a SWOT analysis, "lack of management depth" would be a Multiple choice question. threat opportunity strength weaknessWhy is it important for managers to understand a company's resources and capabilities? Multiple select question. Evaluating a company's resources and capabilities helps identify their potential for giving the company a lasting competitive edge over rivals. A company's business model and strategy must be compatible with its existing resources and capabilities. Deficient resources and capabilities are unlikely to create customer value. In order to execute strategy efficiently, companies should avoid exploiting resources that are rare and hard to copy.