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Strat Man 5th Ed Ch4 Slctd Slides

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Shows how to analyse the strategic resources of an organisation: more on www.global-strategy.net

Shows how to analyse the strategic resources of an organisation: more on www.global-strategy.net

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Transcript

  • 1. How do we analyse an organisation’s strategic resources and capabilities? Video Summary Chapter 4 © Copyright Richard Lynch 2009. All rights reserved
  • 2. Analysing an organisation’s resources and capabilities Environment Resources Purpose Options Options Options Choice Implement This session
  • 3. Why are strategic resources and capabilities important? Why are resources and capabilities important in strategy ? … Because they deliver competitive advantage ..Because they deliver value added Value added : the company’s profits over time Competitive advantage : its brands, patents, distribution, etc. See: Lynch Ch 4, Section 4.3
  • 4. Identifying and developing the resources that deliver SCA and value added Broad survey of the organisation’s main resources and capabilities
    • Tangible SCA
    • Intangible SCA
    • Organisational capability SCA
    • Innovative capability
    • Reputation
    • Architecture
    • Some knowledge content
    Define the SCA now…. ..but what about future dynamics?
    • Core competencies
    • Bench-marking
    • Leveraging
    • Upgrading
    • New R&D
    • Buy-in technology from outside
    • Joint ventures
    Step 1
  • 5. Identifying and developing the resources that deliver SCA and value added Broad survey of the organisation’s main resources and capabilities
    • Tangible SCA
    • Intangible SCA
    • Organisational capability SCA
    • Innovative capability
    • Reputation
    • Architecture
    • Some knowledge content
    Define the SCA now…. ..but what about future dynamics?
    • Core competencies
    • Bench-marking
    • Leveraging
    • Upgrading
    • New R&D
    • Buy-in technology from outside
    • Joint ventures
    Step 2
  • 6. Analyse the role of competitive resources Individual organisation’s resources: make-or-buy? Value added: How? Where? Sustainable Competitive Advantage (SCA) Value Added can contribute to SCA and vice versa Industry key factors for success The seven main concepts of SCA Value chain Value system Concept of Economic Rent Hierarchy of Resources Route 1 Route 2
  • 7. How can we identify an organisation’s resources and capabilities? - 7 Porter’s Value chain Firm infrastucture Human resource management Technology development Procurement Inbound logistics Operations Outbound logistics Sales and marketing Service © Copyright M.E. Porter 1989. All rights reserved
  • 8. Sustainable competitive advantage
    • Advantages over competitors that cannot easily be imitated
    • Sustainable over time by being deeply embedded in the organisation
    • Sources include:
      • Differentiation
      • Low costs
      • Niche marketing
      • High performance technology
      • Superior quality
      • Superior service
      • Vertical integration
      • Synergy
      • Culture, leadership and style of organisation
  • 9. Identifying and developing the resources that deliver SCA and value added Broad survey of the organisation’s main resources and capabilities
    • Tangible SCA
    • Intangible SCA
    • Organisational capability SCA
    • Innovative capability
    • Reputation
    • Architecture
    • Some knowledge content
    Define the SCA now…. ..but what about future dynamics?
    • Core competencies
    • Bench-marking
    • Leveraging
    • Upgrading
    • R&D
    • Buy-in technology from outside
    • Joint ventures
    Step 5