Internal analysis final_version
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Internal analysis final_version Internal analysis final_version Presentation Transcript

  • Internal Analysis
    TEAM B
  • Agenda
    Gary Hamel & C.K. Prahalad
    The Resource-Based Model
    Resources, Capabilities and Core Competencies
    Value Chain Analysis
    2
  • Gary HamelC.K. Prahalad
    NicolòRavina
    Satu Kukkonen-Omar
  • American management expert
    Born 1954 in USA
    Graduate of Andrews University (1975) and the Ross School of Business at the University of Michigan (1990)
    Started his working life as a hospital administrator
    Has worked for companies as General Electric, Time Warner, Nokia, Nestle, Shell, Best Buy, Procter & Gamble, 3M, IBM, and Microsoft
    Gary Hamel-Background
    4
  • Originator of Corecompetenciestogether with C.K Prahalad
    Fortune Magazine called him “the world’s leading expert on business strategy” ‘
    Pioneering concepts such as “strategic intent,” “core competence,” “industry revolution,” and “management innovation” have changed the practice of management in companies around the world.
    Gary Hamel - Landmarks
    5
  • Father of the concept of Core competency
    Born 1941 in India
    Studied Physics at university before working for Union Carbide chemicals company
    Wrote Doctoral thesis at Harvard Business school
    Professor at University of Michigan where he met Gary Hamel
    In 1993 the Wall Street Journal named him as one of the top ten teachers in the world
    In 1994 received an award from Indo-American Society for promoting goodwill between India and the United States
    C.K. Prahalad - Background
    6
  • Prahalad was co-founder and became CEO of PrajaInc
    Many of his ideas on competitive analysis argue against the supremacy of traditional strategic thinking
    Focus on the concepts of “Core competence”, “strategic intent” and “the bottom of the pyramid”
    The book Fortune at the bottom of the pyramid was voted top business book of the year 2004 by www.amazon.com
    C.K. Prahalad - Landmarks
    7
  • The Resource-Based Model
    Philipp Vejchoda
    Eva Wottge
    Julie Couderc
  • The Resource-Based Model
    Inside-Out approach – starting point is the internal environment
    Alternative perspective to Outside-In approaches such as Porter’s 5 forces
    Resource-Based View emphasizes the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage
    Internal capabilities determine the strategic choices a company makes in competing in the external environment
    9
  • Resources
    Definition
    Resources are inputs that enable an organization to carry out its activities
    Confer no value to companies – only when they are put to some productive use the value follows
    Tangible ResourcesPhysical assets that a company possesses like plants and machinery, finance and human capital
    Intangible ResourcesRoutines and practices that have developed over time within an organization including reputation, culture, knowledge, brands
    10
  • Competencies
    Definition:
    Competenciesareattributesthat firms require in order to be able to compete in the marketplace
    Prerequisite to compete within an industry
    Competencies themselves do not confer any competitive advantage for the organization
    11
  • Core Competencies
    Definition:
    A cluster of attributes that an organization possesses which in turn allows to achieve competitive advantage
    Derive from collective learning of individual members within an organization
    Associated with Organizational Learning
    They should
    Provide access to a wide variety of markets (Honda’s engine desing and production)
    Make a significant contribution on the customer benefits (BMW engineering capabilites)
    Be difficult to imitate for competitors
    12
  • Case Study Toyota
    Toyota Priusrepresentscorecompetenceof Toyota
    masterfuel-savingtechnologies in a fasterwaythanrivals
    hopeforcuttingcostsfortheenginetothe half
    Effect on competitors:
    jump on thishypeand
    play catch meifyoucan (iftheywanttoor not)
    13
  • DistinctiveCapabilities
    Definition:
    Are important in providing an organizationwithcompetitiveadvantage
    Derivefrom 3 areas
    An organization‘sarchitecture (internal, external, networks)
    Innovation and
    Reputation
    14
  • Case Study Apple
    Organizationalarchitecture
    Innovation
    Reputation
    !!Your turn!!
    15
  • GRANT’s model (1991)
    - Capabilities are the main source of competitive advantage
    • They are about ability to coordinate resources i.einputs (as capital, human resources, brands, financial)
    • He propose a strategy formulation in 5 stages:
    • >Identify and classify resources
    • >Identify capabilities
    • >Appraise rent-generating of resources and capabilities by their potential for sustainable competitive advantage and appropriability of their returns
    • >Exploits resources and capabilities relative to the external environment
    • >Identify whether any resource gaps exist which need to be filled
    16
  • 17
  • Identify Sustainable Competitive Advantage
    To obtain a sustainable competitive advantage a company has to improve a valuable strategy that its competitors will unable to duplicate. Barney (1991)
    To be sustainable, a competitive advantage need to achieve those 4 features:
    > Valuable
    > Rare
    > Difficult to imitate i.e unique location, path dependency, usual ambiguity and social complexity
    > No strategic substitute for this product
    18
  • Resources, Capabilities and Core Competencies
    Mikaela Rimaila
    Riitta Varhelo
  • Strategic role
    20
  • Strategic role
    • Canbeused in varietyways
    • Contributes to superiorcustomervalue
    • Is difficult for compettitors to imitate
    21
    Distinctive capabilities
  • Main questions
    Whatstrengths and weaknessesare in my responsibilityarea?
    Whichstrengthsprovide my customerswithaddedvalue?
    Which of the companystrengthswillboostourcompetitiveedge?
    Howcan I strategiallymanagethesesareas to highlevels of performance?
    22
  • Main questions
    Which things are done poorly, or not at all, in our organization?
    Are we focusing on our core competences?
    Are we doing too many things around the core things we should be doing?
    23
  • Value Chain Analysis
    Markku Tomperi
    Miika Kostamo
  • Value Chain Analysis
    Primary Activities
    Margins
    Support Activities
    Micheal Porter 1985. Competitive Advantages.
    25
  • Value Analysis for an activity
    No
    Yes
    No
    No
    Yes
    Yes
    ADDED VALUE = MARGIN
    26
  • http://garyhamel.com/
    http://www.garyhamel.com/doc/hamel_cv.pdf
    The Economist, http://www.economist.com/node/12311358
    www.wikipedia.com
    www.amazon.com
    http://books.google.com/books?id=ifCmWeOgvQsC&pg
    http://www.openlearningworld.com/books/Introduction%20to%20Strategic%20Management/Alternative%20Models%20of%20Developing%20Strategic%20Competitiveness/The%20Resource-Based%20Model.html
    http://en.wikipedia.org/wiki/Robert_McQueen_Grant
    Henry, Anthony: Understanding Strategic Management, Second Edition, Oxford 2011
    Sources
    27