This document provides an overview of strategic management and the resource-based view (RBV) of the firm. It discusses the key differences between the industrial organization model and RBV, defining resources and capabilities in RBV. VRIO framework is explained for assessing if resources can provide sustained competitive advantage. Criticisms of RBV are outlined along with suggestions for future research, such as further defining resources and developing a more subjective view of resource value in RBV theory.
The document discusses the development of the resource-based view of the firm and provides a critical appraisal of the theory, outlining both its methodological difficulties and practical insights. It examines the empirical evidence supporting the resource-based view and addresses areas that require further focus, such as resource functionality and combining the theory with other strategic perspectives.
Strategic management involves formulation and implementation of major goals and initiatives by top management based on assessments of internal and external environments. [DOCUMENT] outlines the six key steps to effective strategic formulation: 1) define the organization, 2) define the strategic mission, 3) define strategic objectives, 4) define the competitive strategy considering industry, competition, and strengths/weaknesses, 5) implement strategies through tactical actions, and 6) regularly evaluate progress against the strategic plan and make adjustments based on changes in the business environment. Strategic formulation provides a framework for actions to achieve anticipated results but requires flexibility to adapt the strategic plan to changing market conditions.
This document discusses different levels of strategy, including corporate strategy, business strategy, and functional strategy.
Corporate strategy involves top-level decisions about the overall scope and direction of a corporation. It occupies the highest decision-making level. Corporate strategies include stability, expansion, retrenchment, and combinations of those. Expansion strategies involve concentrating resources, diversifying, integrating operations, cooperating with competitors, and internationalization. Retrenchment strategies are turnaround, divestment, and liquidation.
Business strategy details how a firm provides value to customers within a specific industry. Common business strategies are cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost/differentiation.
Functional
Strategy implementation refers to the activities within an organization to execute its strategic plan. This involves translating the chosen strategy into organizational actions to achieve strategic goals. Key aspects of strategy implementation include developing organizational structures, control systems, and culture aligned with the strategy. It also involves assigning tasks and roles to employees to maximize efficiency, quality, and customer satisfaction. Successful strategy implementation depends on factors like organizational structure, resource allocation, leadership styles, and procedures. It is important that implementation responsibilities are shifted to divisional and functional managers who were involved in the strategy formulation process.
This is a presentation given in the MBS MSc Innovation Management course taught by Prof. Silvia for group assignment to introduce and discuss the paper Dynamic Capabilities and Strategic Management by Teece D., Pisano G., and Shuen A. in 1997.
An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion
An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge.
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for meeting customer needs
• creates organization-specific competencies that provide competitive advantage since they are unique
• ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
“ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”
“ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”
Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
A measurement of the quality
of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.
The document discusses the Resource Based View (RBV) approach to competitive advantage. The RBV states that a company's internal resources are more important than external factors in determining competitive advantage. Resources include capital, equipment, employee skills, and brands, while capabilities are the ability of resources to perform tasks. There are three categories of resources: physical, human, and organizational. According to RBV, competitive resources and capabilities should be rare, difficult to imitate, and have no substitutes.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
The document discusses the development of the resource-based view of the firm and provides a critical appraisal of the theory, outlining both its methodological difficulties and practical insights. It examines the empirical evidence supporting the resource-based view and addresses areas that require further focus, such as resource functionality and combining the theory with other strategic perspectives.
Strategic management involves formulation and implementation of major goals and initiatives by top management based on assessments of internal and external environments. [DOCUMENT] outlines the six key steps to effective strategic formulation: 1) define the organization, 2) define the strategic mission, 3) define strategic objectives, 4) define the competitive strategy considering industry, competition, and strengths/weaknesses, 5) implement strategies through tactical actions, and 6) regularly evaluate progress against the strategic plan and make adjustments based on changes in the business environment. Strategic formulation provides a framework for actions to achieve anticipated results but requires flexibility to adapt the strategic plan to changing market conditions.
This document discusses different levels of strategy, including corporate strategy, business strategy, and functional strategy.
Corporate strategy involves top-level decisions about the overall scope and direction of a corporation. It occupies the highest decision-making level. Corporate strategies include stability, expansion, retrenchment, and combinations of those. Expansion strategies involve concentrating resources, diversifying, integrating operations, cooperating with competitors, and internationalization. Retrenchment strategies are turnaround, divestment, and liquidation.
Business strategy details how a firm provides value to customers within a specific industry. Common business strategies are cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost/differentiation.
Functional
Strategy implementation refers to the activities within an organization to execute its strategic plan. This involves translating the chosen strategy into organizational actions to achieve strategic goals. Key aspects of strategy implementation include developing organizational structures, control systems, and culture aligned with the strategy. It also involves assigning tasks and roles to employees to maximize efficiency, quality, and customer satisfaction. Successful strategy implementation depends on factors like organizational structure, resource allocation, leadership styles, and procedures. It is important that implementation responsibilities are shifted to divisional and functional managers who were involved in the strategy formulation process.
This is a presentation given in the MBS MSc Innovation Management course taught by Prof. Silvia for group assignment to introduce and discuss the paper Dynamic Capabilities and Strategic Management by Teece D., Pisano G., and Shuen A. in 1997.
An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion
An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge.
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for meeting customer needs
• creates organization-specific competencies that provide competitive advantage since they are unique
• ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
“ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”
“ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”
Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
A measurement of the quality
of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.
The document discusses the Resource Based View (RBV) approach to competitive advantage. The RBV states that a company's internal resources are more important than external factors in determining competitive advantage. Resources include capital, equipment, employee skills, and brands, while capabilities are the ability of resources to perform tasks. There are three categories of resources: physical, human, and organizational. According to RBV, competitive resources and capabilities should be rare, difficult to imitate, and have no substitutes.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
This document provides an overview of strategic analysis techniques used to understand a company's internal and external environment. It discusses environmental scanning, situational analysis using SWOT and TOWS matrices, industry and competitive analysis methods like Porter's 5 Forces and strategic group mapping. Product portfolio analysis techniques like BCG matrix and product life cycle are also covered. The document aims to equip readers with frameworks to evaluate a company's strategy and make strategic decisions.
This document provides an overview of strategic management. It begins by defining strategic management and describing the strategic management process, which includes strategy formulation, implementation, and evaluation. It then discusses integrating analysis and intuition in strategic management. The rest of the document covers topics like the objectives and stages of strategic management, key terms, strategies used by companies in 2011, benefits and pitfalls of strategic management, and comparisons to military strategy.
This document discusses functional strategies and provides examples in key functional areas. It begins by defining functional strategy as how functional areas achieve corporate objectives through maximizing resource productivity. It then lists common functional strategy objectives like profitability, market share, and innovation.
The document goes on to describe different types of functional strategies, including manufacturing, marketing, human resources, research and development, and financial management strategies. For each type, it provides high-level explanations of their focus and processes. Finally, it discusses how functional strategies should be integrated at different stages of the product lifecycle from introduction to maturity to decline.
Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. In strategy formulation, companies determine their vision, mission, external opportunities and threats, internal strengths and weaknesses, long-term objectives, and alternative strategies. In strategy implementation, companies develop annual objectives, policies, and allocate resources to achieve the strategic plan. In strategy evaluation, companies conduct internal and external reviews to measure performance and make corrective actions. Effective strategic management provides benefits such as enhanced awareness of threats and improved understanding of competitors' strategies.
Methods and techniques of organization appraisallakhwinder Singh
This document discusses various methods and techniques for organizational appraisal, including value chain analysis, qualitative analysis, quantitative analysis, historical analysis, industry standards, benchmarking, and the balanced scorecard. It provides details on each method, such as how value chain analysis is used to identify a firm's most valuable activities, how quantitative analysis includes financial and non-financial measures, and how the balanced scorecard translates a business's vision into objectives in four key areas: financial, customer, internal processes, and learning and growth. The document aims to outline different approaches for evaluating an organization's internal environment and identifying strengths and weaknesses.
The document discusses the roles and responsibilities of strategic leaders and middle managers in organizational strategy. It outlines several key roles:
1. Strategic leaders such as the CEO are responsible for determining strategic direction, managing resources, sustaining organizational culture, emphasizing ethics, and establishing controls.
2. Middle managers play important roles in strategy formation through idea generation, championing new initiatives, and developing capabilities.
3. Both strategic leaders and middle managers are involved in strategy implementation through roles like leadership, organization, resource management, and performance monitoring. Effective strategy implementation requires alignment across all organizational elements.
This document discusses generic and grand strategies at the corporate and business unit levels. It begins by defining generic competitive strategies like low cost, differentiation, and focus strategies. It then defines grand strategies at the corporate level, like stability, growth, retrenchment, and divestment strategies. The rest of the document provides more details on Porter's generic strategies of low cost leadership, differentiation, and focus, including examples of companies that employ each type of strategy.
The document provides an overview of conducting an internal analysis for strategic management. It discusses analyzing an organization's resources and capabilities, including its resource-based view, business model, value chain, functional resources, and functional capabilities. Key aspects covered include identifying the organization's strengths and weaknesses, distinctive competencies, core competencies, management functions, strategic marketing issues like market position and segmentation, marketing mix, product life cycle, and brand reputation. The internal analysis is critical for understanding an organization's internal strategic factors to determine if it can take advantage of opportunities and avoid threats.
Here describe the SWOT Analysis in the Strategic Management. A Complete package that covered all the related areas (such like SWOT advantages, disadvantages, application & Example)
The document discusses the SPACE Matrix, a four-quadrant framework that indicates which type of strategies are most appropriate for an organization based on its strategic position. The matrix evaluates an organization across internal dimensions like financial position and competitive position, and external dimensions like stability position and industry position to place the organization in an aggressive, conservative, defensive, or competitive quadrant. Each quadrant suggests different types of strategies, such as using strengths aggressively for the aggressive quadrant or focusing on weaknesses for the defensive quadrant.
The document discusses environmental scanning, which involves examining and studying a business's internal and external environment to identify opportunities and threats. It identifies factors in the external environment like economic, demographic, technological, political, and cultural factors. The internal environment includes organizational resources, behavior, capabilities, and strengths/weaknesses. Several analysis tools are discussed, including Porter's Five Forces model, BCG matrix, Porter's generic strategies, and value chain analysis. Adaptive strategies mentioned include prospector, defender, analyzer, and reactor strategies.
The document defines strategic alliances as cooperative agreements between two or more companies to share resources and achieve common business objectives while maintaining autonomy. Strategic alliances allow companies to access new markets and technologies, reduce risks, and gain competitive advantages. The document discusses the different types of strategic alliances including joint ventures, equity alliances, and non-equity alliances. It also covers the process of forming a strategic alliance and potential advantages and disadvantages.
This document discusses various perspectives on strategy and strategic human resource management. It provides definitions of strategy from several scholars, such as Mintzberg, Quinn and Purcell. It also defines strategic management and strategic HRM. The document outlines different types of strategies, including business, operations and resource strategies. It discusses the role of HR in strategy formulation and implementation. Finally, it presents models of strategic HRM and discusses advantages and disadvantages of taking a strategic approach to HRM.
This document discusses the concept of a learning organization. It defines a learning organization as a company that facilitates learning among its members and continuously transforms itself. It notes that the concept was coined by Peter Senge and others. The document outlines the nature, characteristics, core areas, and levels of learning organizations. It also discusses how to create a learning organization by establishing commitment to change, eliminating boundaries, developing a culture of openness, and incorporating employees into organizational challenges.
The document discusses various strategic analysis and choice frameworks including the EFE matrix, IFE matrix, SWOT matrix, SPACE matrix, BCG matrix, GE nine-cell matrix, and IE matrix. It provides details on how to conduct an analysis using each framework, including how to evaluate internal and external factors, match strategies, and determine the appropriate strategic position and actions. The frameworks help organizations generate strategies by analyzing their internal strengths and weaknesses as well as external opportunities and threats.
This document discusses the relationship between organizational culture and strategic human resource management. It provides frameworks for analyzing organizational culture, including Hofstede's cultural dimensions model, the competing values framework, and the cultural web. The case study of Dicom Group plc is presented, which has a culture characterized by flat structures, integrity and respect in treating employees, and motivating workers to outcompete rivals. For Dicom, aligning its flexible and loose culture with its goals of acceleration, transformation, and maintaining market share supports high performance. The document concludes that organizational culture can enhance performance and satisfaction if it provides shared behavioral styles, approaches to problem-solving, and norms to guide rewards and prevent undesired behaviors.
This document discusses the three levels of strategic management - corporate, business, and operational.
The corporate level focuses on the overall plan for the organization and strategic business units. Strategy at this level involves conceptual decisions. The business level determines how each business unit will compete and allocates resources. Operational level strategies improve internal functions like manufacturing and marketing.
Effective strategic management requires coordination across all three levels to improve profitability.
The document discusses strategic evaluation and control. It defines strategic evaluation as determining the effectiveness of a strategy in achieving objectives and making corrections. Strategic evaluation is the final step of the strategic management process and involves assessing factors, measuring performance, and taking corrective actions. It ensures the strategy and implementation meet objectives. Strategic evaluation and control tests strategy effectiveness and provides a way for organizations to determine if their strategy is guiding them as intended towards objectives.
The document outlines Mintzberg's five definitions of strategy: plan, ploy, pattern, position, and perspective. It provides details about each definition: plan refers to a consciously intended course of action or guidelines; ploy is a specific maneuver; pattern is a consistency in actions and behavior whether intended or not; position locates an organization in its environment; and perspective is an ingrained way of perceiving the world that is shared within an organization.
Value chain analysis is a tool used to identify sources of competitive advantage. It examines a firm's activities and how they interact and affect costs and performance. Michael Porter developed the value chain model which divides a firm's activities into primary and support activities. Primary activities directly involve creating and delivering a product. Support activities provide inputs for primary activities. Tata Motors' value chain includes long-term supplier contracts, efficient manufacturing processes, a large dealer network, and investments in research and development. Analyzing a firm's value chain can reveal opportunities to lower costs or differentiate products compared to competitors.
This document provides an overview of strategic analysis techniques used to understand a company's internal and external environment. It discusses environmental scanning, situational analysis using SWOT and TOWS matrices, industry and competitive analysis methods like Porter's 5 Forces and strategic group mapping. Product portfolio analysis techniques like BCG matrix and product life cycle are also covered. The document aims to equip readers with frameworks to evaluate a company's strategy and make strategic decisions.
This document provides an overview of strategic management. It begins by defining strategic management and describing the strategic management process, which includes strategy formulation, implementation, and evaluation. It then discusses integrating analysis and intuition in strategic management. The rest of the document covers topics like the objectives and stages of strategic management, key terms, strategies used by companies in 2011, benefits and pitfalls of strategic management, and comparisons to military strategy.
This document discusses functional strategies and provides examples in key functional areas. It begins by defining functional strategy as how functional areas achieve corporate objectives through maximizing resource productivity. It then lists common functional strategy objectives like profitability, market share, and innovation.
The document goes on to describe different types of functional strategies, including manufacturing, marketing, human resources, research and development, and financial management strategies. For each type, it provides high-level explanations of their focus and processes. Finally, it discusses how functional strategies should be integrated at different stages of the product lifecycle from introduction to maturity to decline.
Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. In strategy formulation, companies determine their vision, mission, external opportunities and threats, internal strengths and weaknesses, long-term objectives, and alternative strategies. In strategy implementation, companies develop annual objectives, policies, and allocate resources to achieve the strategic plan. In strategy evaluation, companies conduct internal and external reviews to measure performance and make corrective actions. Effective strategic management provides benefits such as enhanced awareness of threats and improved understanding of competitors' strategies.
Methods and techniques of organization appraisallakhwinder Singh
This document discusses various methods and techniques for organizational appraisal, including value chain analysis, qualitative analysis, quantitative analysis, historical analysis, industry standards, benchmarking, and the balanced scorecard. It provides details on each method, such as how value chain analysis is used to identify a firm's most valuable activities, how quantitative analysis includes financial and non-financial measures, and how the balanced scorecard translates a business's vision into objectives in four key areas: financial, customer, internal processes, and learning and growth. The document aims to outline different approaches for evaluating an organization's internal environment and identifying strengths and weaknesses.
The document discusses the roles and responsibilities of strategic leaders and middle managers in organizational strategy. It outlines several key roles:
1. Strategic leaders such as the CEO are responsible for determining strategic direction, managing resources, sustaining organizational culture, emphasizing ethics, and establishing controls.
2. Middle managers play important roles in strategy formation through idea generation, championing new initiatives, and developing capabilities.
3. Both strategic leaders and middle managers are involved in strategy implementation through roles like leadership, organization, resource management, and performance monitoring. Effective strategy implementation requires alignment across all organizational elements.
This document discusses generic and grand strategies at the corporate and business unit levels. It begins by defining generic competitive strategies like low cost, differentiation, and focus strategies. It then defines grand strategies at the corporate level, like stability, growth, retrenchment, and divestment strategies. The rest of the document provides more details on Porter's generic strategies of low cost leadership, differentiation, and focus, including examples of companies that employ each type of strategy.
The document provides an overview of conducting an internal analysis for strategic management. It discusses analyzing an organization's resources and capabilities, including its resource-based view, business model, value chain, functional resources, and functional capabilities. Key aspects covered include identifying the organization's strengths and weaknesses, distinctive competencies, core competencies, management functions, strategic marketing issues like market position and segmentation, marketing mix, product life cycle, and brand reputation. The internal analysis is critical for understanding an organization's internal strategic factors to determine if it can take advantage of opportunities and avoid threats.
Here describe the SWOT Analysis in the Strategic Management. A Complete package that covered all the related areas (such like SWOT advantages, disadvantages, application & Example)
The document discusses the SPACE Matrix, a four-quadrant framework that indicates which type of strategies are most appropriate for an organization based on its strategic position. The matrix evaluates an organization across internal dimensions like financial position and competitive position, and external dimensions like stability position and industry position to place the organization in an aggressive, conservative, defensive, or competitive quadrant. Each quadrant suggests different types of strategies, such as using strengths aggressively for the aggressive quadrant or focusing on weaknesses for the defensive quadrant.
The document discusses environmental scanning, which involves examining and studying a business's internal and external environment to identify opportunities and threats. It identifies factors in the external environment like economic, demographic, technological, political, and cultural factors. The internal environment includes organizational resources, behavior, capabilities, and strengths/weaknesses. Several analysis tools are discussed, including Porter's Five Forces model, BCG matrix, Porter's generic strategies, and value chain analysis. Adaptive strategies mentioned include prospector, defender, analyzer, and reactor strategies.
The document defines strategic alliances as cooperative agreements between two or more companies to share resources and achieve common business objectives while maintaining autonomy. Strategic alliances allow companies to access new markets and technologies, reduce risks, and gain competitive advantages. The document discusses the different types of strategic alliances including joint ventures, equity alliances, and non-equity alliances. It also covers the process of forming a strategic alliance and potential advantages and disadvantages.
This document discusses various perspectives on strategy and strategic human resource management. It provides definitions of strategy from several scholars, such as Mintzberg, Quinn and Purcell. It also defines strategic management and strategic HRM. The document outlines different types of strategies, including business, operations and resource strategies. It discusses the role of HR in strategy formulation and implementation. Finally, it presents models of strategic HRM and discusses advantages and disadvantages of taking a strategic approach to HRM.
This document discusses the concept of a learning organization. It defines a learning organization as a company that facilitates learning among its members and continuously transforms itself. It notes that the concept was coined by Peter Senge and others. The document outlines the nature, characteristics, core areas, and levels of learning organizations. It also discusses how to create a learning organization by establishing commitment to change, eliminating boundaries, developing a culture of openness, and incorporating employees into organizational challenges.
The document discusses various strategic analysis and choice frameworks including the EFE matrix, IFE matrix, SWOT matrix, SPACE matrix, BCG matrix, GE nine-cell matrix, and IE matrix. It provides details on how to conduct an analysis using each framework, including how to evaluate internal and external factors, match strategies, and determine the appropriate strategic position and actions. The frameworks help organizations generate strategies by analyzing their internal strengths and weaknesses as well as external opportunities and threats.
This document discusses the relationship between organizational culture and strategic human resource management. It provides frameworks for analyzing organizational culture, including Hofstede's cultural dimensions model, the competing values framework, and the cultural web. The case study of Dicom Group plc is presented, which has a culture characterized by flat structures, integrity and respect in treating employees, and motivating workers to outcompete rivals. For Dicom, aligning its flexible and loose culture with its goals of acceleration, transformation, and maintaining market share supports high performance. The document concludes that organizational culture can enhance performance and satisfaction if it provides shared behavioral styles, approaches to problem-solving, and norms to guide rewards and prevent undesired behaviors.
This document discusses the three levels of strategic management - corporate, business, and operational.
The corporate level focuses on the overall plan for the organization and strategic business units. Strategy at this level involves conceptual decisions. The business level determines how each business unit will compete and allocates resources. Operational level strategies improve internal functions like manufacturing and marketing.
Effective strategic management requires coordination across all three levels to improve profitability.
The document discusses strategic evaluation and control. It defines strategic evaluation as determining the effectiveness of a strategy in achieving objectives and making corrections. Strategic evaluation is the final step of the strategic management process and involves assessing factors, measuring performance, and taking corrective actions. It ensures the strategy and implementation meet objectives. Strategic evaluation and control tests strategy effectiveness and provides a way for organizations to determine if their strategy is guiding them as intended towards objectives.
The document outlines Mintzberg's five definitions of strategy: plan, ploy, pattern, position, and perspective. It provides details about each definition: plan refers to a consciously intended course of action or guidelines; ploy is a specific maneuver; pattern is a consistency in actions and behavior whether intended or not; position locates an organization in its environment; and perspective is an ingrained way of perceiving the world that is shared within an organization.
Value chain analysis is a tool used to identify sources of competitive advantage. It examines a firm's activities and how they interact and affect costs and performance. Michael Porter developed the value chain model which divides a firm's activities into primary and support activities. Primary activities directly involve creating and delivering a product. Support activities provide inputs for primary activities. Tata Motors' value chain includes long-term supplier contracts, efficient manufacturing processes, a large dealer network, and investments in research and development. Analyzing a firm's value chain can reveal opportunities to lower costs or differentiate products compared to competitors.
Fpt's human resource strategies in 2009 (a look back)Vu Hung Nguyen
FYI a good slide about HR strategy by Mr. Dat, Head of HR in FPT since 2007. Some points:
- FPT has HR management systems (such as PeopleSoft)
- FPT has short, middle and long term plan about HR (< 1 year, 1-2 years, 2-5 years)
- They define, design and execute HR functions
- Some functional groups: recruiment, learning/training/dev. and staff managements
- They have basic design and principles per se
- 5 strategies, 9 action programmes defined at group level
ref. http://www.slideshare.net/johnfkenedy/hr-strategy-fpt
Honda UK expands their digital strategy with YahooLizzie Barclay
Yahoo Gemini is Yahoo's unified native advertising marketplace that allows ads to be placed contextually across Yahoo sites on mobile and desktop. It uses audience targeting and personalization technology to serve ads to the right audiences. Honda UK used Yahoo Gemini to test new formats and increase reach in their digital strategy for the Honda Accord. They rotated creative focusing on offers and brand awareness. The results were promising, with lower CPC and CPL than competitors, so Honda UK increased their Yahoo Gemini budget.
2016 yılının ilk yarısında Dünya Otomotiv Sanayinde %3,2 büyüme olduğu görülmektedir. Otomotiv sektörünün lokomotifi olan Amerika’daki büyüme hızının ise 2016 yılı itibariyle %2,4 olacağı tahmin ediliyor. Türk Otomotiv İhracatı için son derece önemli olan Avrupa pazarı için ise %1,5 seviyesinde bir büyüme beklenmektedir.
Honda was founded in 1948 by Japanese mechanic Soichiro Honda. It exported its first car, the N600, to the United States in 1970. Honda is now a major global automaker with production facilities worldwide. Its lineup includes popular models like the Fit, Civic, Accord, Odyssey, and CR-V. Honda focuses on research and development to provide customers with fuel efficient and advanced technology vehicles. It employs over 167,000 people across 134 production facilities and 31 R&D centers globally.
This document outlines a digital marketing strategy to raise awareness of Honda vehicles among adults aged 25-40. The strategy involves social media campaigns on Twitter and Facebook using the hashtag #HondaChamps, as well as Google AdWords search engine optimization. Key performance indicators such as new customers, demographics, and click-to-purchase rates will track the effectiveness of the campaigns. The proposed budget of $500,000 will be spent on Google ads, social media prizes and promotions, agency fees, and promoted hashtag advertisements on Facebook and Twitter.
The document discusses Hero Honda Motors' future strategy after separating from Honda. It notes that Hero Honda was previously a joint venture between Hero Group and Honda Motor Company. Going forward, Hero aims to focus on product and corporate branding, global branding, building indigenous research and development capabilities, expanding into global markets, and establishing channel partners abroad. The separation could increase competitiveness in the industry and provide more options and better quality for consumers.
The Body Shop is a skincare and beauty business with over 2500 shops in 65 countries. It was founded in 1976 by Dame Anita Roddick and has a strong brand image focused on ethical values like fair trade and avoiding animal testing. The company has material resources like innovative product lines and financial support from L'Oreal, as well as immaterial resources like its reputation and company culture. Its core competencies center around developing natural, high-quality products consistent with its ethical mission.
The document summarizes key differences between the Industrial Organization (IO) view and Resource-Based View (RBV) of firms. The IO view focuses on external industry conditions and assumes firms have identical resources, while the RBV focuses on internal characteristics and assumes resources are heterogeneous.
The focus of this project was to capture success of one of the most worldwide know company - Apple and track down its way to overcome its competitors. With the use of RBV Theory, Dynamic Capabilities Framework and Business Model Canvas.
This document provides an overview of the history and business strategies of Harley-Davidson and Honda motorcycles. It describes how Harley-Davidson was the top American motorcycle manufacturer until Japanese companies like Honda entered the US market in the 1950s and 1960s. Honda's innovation and focus on quality allowed it to quickly gain a large market share. The document also discusses how Harley-Davidson struggled after being acquired by AMF in the 1960s but was able to regain success in the 1980s. Porter's Five Forces model is applied to analyze Harley-Davidson's competitive environment. Key aspects of Honda's history, expansion to the US, and strengths are summarized as well.
Honda was founded in 1948 and is known for manufacturing automobiles and motorcycles. It uses planning, organizing, leading, and controlling to coordinate work activities and accomplish goals efficiently. Honda develops flexible plans and involves staff in planning. It places specialists globally and uses team leadership. Honda also controls machines through human monitoring. It aims to supply high-quality, reasonably priced products for customer satisfaction.
Business portfolio analysis is a technique that analyzes a company's different business units or products in the same way an investment portfolio is analyzed. It uses tools like the BCG matrix and GE nine-cell matrix to evaluate business units based on factors such as market share and market growth. This helps companies allocate resources more effectively by identifying strong business units in attractive markets that should receive more investment, and weak units in unattractive markets that may need to be improved or divested. While portfolio analysis provides a systematic approach and encourages strategic evaluation, the analyses can oversimplify strategies and produce static snapshots that may not account for changing market conditions.
This document provides an overview of Honda Ltd., including its history, current operations, and strategic management approach. It discusses how Honda was founded in 1948 and is now a global company with over 167,000 employees operating in motorcycle, automobile, financial services, and power product businesses. The document also outlines Honda's five levels of strategy, from enterprise strategy focusing on its mission and vision, to corporate, business unit, and individual employee strategies. Key aspects of Honda's organizational culture and processes are explained, including respect for individuals, innovation management, and diversity in employee management.
Approaches to strategic hrm - strategic human resource management - Manu Me...manumelwin
There are five approaches to strategic HRM. These consist of
Resource-based strategy.
Achieving strategic fit.
High-performance management.
High- commitment management.
High-involvement management.
This document discusses models of competitive advantage and the resource-based view of sustained competitive advantage. It contrasts the environmental model, which assumes resources are homogeneous and mobile, with the resource-based model wherein differences between firm resources can provide long-lasting competitive differentiation. The resource-based model argues competitive advantage results from resources that are valuable, rare, imperfectly imitable, and have no strategically equivalent substitutes. Sustained competitive advantage arises when a firm exploits its unique internal resources through valuable strategies not duplicated by competitors.
The document discusses theories on the performance of entrepreneurial firms and presents hypotheses and empirical analysis testing these theories. It finds:
1) Initial venture idea assets and founding team contracting experience are both associated with higher new venture performance.
2) Venture idea assets and contracting experience have an especially strong effect on performance in environments with weak appropriability protection.
3) Venture ideas complement founding team contracting experience, such that startups possessing both resources achieve the highest performance.
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Nike's core competency is its ability to create and leverage athlete endorsements effectively. It strategically selects athletes who align with its brand image and values, and invests in elevating them into heroes through storytelling and marketing. While risky, as athletes may face controversies, this approach has driven Nike's historical success in building its brand around athletics globally. VRIO analysis shows that while imitable, Nike's competency provides value and is challenging for competitors to fully replicate due to its experience, reputation, and resources to organize capturing value from athlete endorsements.
This document summarizes Jay B. Barney's article on analyzing a firm's internal strengths and weaknesses as sources of competitive advantage. It makes three key points:
1) To fully understand competitive advantage, firms must analyze both external opportunities/threats and internal strengths/weaknesses. While tools exist to analyze the external environment, fewer tools exist to analyze internal strengths.
2) A firm's resources and capabilities can provide competitive advantage if they are valuable, rare, and difficult to imitate. Valuable resources enable a firm to exploit opportunities or neutralize threats. Rare resources are not widely held by competitors. Difficult-to-imitate resources are costly for competitors to obtain.
3) History
This document summarizes Jay B. Barney's article on analyzing a firm's internal strengths and weaknesses as sources of competitive advantage. It discusses how traditional strategic analysis (SWOT analysis) considers both external opportunities/threats and internal strengths/weaknesses. However, more tools have been developed for external analysis than internal analysis. Barney proposes a framework for analyzing a firm's resources and capabilities internally by considering if they are valuable, rare, difficult to imitate, and can be organized for advantage. Firms like Sony, 3M, Walmart and Nucor have achieved success through exploiting opportunities using their unique, hard to copy internal resources and capabilities, despite operating in unfavorable external environments.
This document discusses a firm's resources and how they can provide sustained competitive advantage. It defines three categories of resources: physical capital, human capital, and organizational capital. These resources must be valuable, rare, difficult to imitate, and lack substitutes to provide competitive advantage. The document provides examples of different types of resources that fall into each category and explains how resources can be used to implement strategies that exploit opportunities and neutralize threats in order to achieve sustained competitive advantage over competitors.
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through vision, mission, and governance. A company's values and culture also influence competitive advantage. Bringing the right people together and having the right incentives, structure, and systems in place can collectively help companies develop unique resources and capabilities to gain competitive advantages.
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through setting vision, mission, and governance. A company's values and culture also influence competitive advantage. Resources and capabilities are key, and must be valuable, rare, imperfectly imitable, and non-substitutable to provide sustained advantages. The document examines early strategy models and proposes that integrating multiple internal and external factors is needed to identify and sustain sources of competitive advantage.
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...Himanshu Arora
This document summarizes the resource-based view of strategy. It discusses:
1. The evolution of strategic theories from focusing on industry structure to recognizing the importance of a firm's internal resources.
2. How the resource-based view sees firms as collections of tangible and intangible assets that determine effectiveness and competitive advantage.
3. Five tests to determine if a resource is competitively valuable - inimitability, durability, appropriability, substitutability, and competitive superiority.
4. Strategic implications around identifying, investing in, upgrading, and leveraging resources to meet the five tests and gain competitive advantage.
The document discusses competitive advantage and business systems. It defines the key components of a business system as the resource base, activity system, and product/service offering. It then examines internal analysis using the resource-based view, which defines a firm according to its resources and capabilities. Resources support capabilities, and capabilities exploit resources. The document analyzes how resources, capabilities, and the value chain can provide competitive advantage, and stresses the importance of dynamic capabilities for managing knowledge, learning, innovation, and developing future resources and capabilities.
The document discusses the internal environment of a firm, focusing on resources, capabilities, and core competencies. It defines these terms and explains how they relate.
Resources are a firm's assets such as equipment, employees, brand names, and finances. Capabilities are a firm's ability to integrate resources to achieve objectives and develop over time through complex interactions. Core competencies are capabilities that are valuable, rare, costly to imitate, and nonsubstitutable, and provide competitive advantage. The document provides examples and criteria for identifying core competencies, and explains how they can lead to sustainable competitive advantage and above-average returns.
This document discusses the importance of resources, capabilities, and competencies in developing business strategies. It outlines that selecting strategies that exploit valuable resources and competencies, fully utilizing resources and capabilities, and building new resources and competencies are key elements of strategy. Understanding a firm's resources in areas like financial, physical, human, technological, and reputation can help identify competitive advantages. Organizational capabilities refer to a firm's ability to undertake activities, and core competencies are capabilities fundamental to strategy and performance. The value of resources depends on their appropriability, scarcity, and ability to create value.
Resources and CapabilitiesThe RBV and the VRIO Framework.docxronak56
Resources and Capabilities
The RBV and the VRIO Framework
Core Competences
The Value Chain
Dynamic Capabilities
fisher.osu.edu
Objectives
Internal Analysis
OSU Fisher College of Business
Hawk • Strategic Management
Industry Effects vs Firm Effects
What matters more: industry differences or firm differences?
Internal Analysis
We are moving more internal….
SWOT and Internal Attributes
Barney motivates the article with SWOT analysis. What is SWOT, and how does it fit with the course?SWOT = Strengths, Weaknesses, Opportunities, ThreatsBarney says there are a lot of tools to analyze the external environment (Industry Analysis), but there has been less development of tools to analyze the firm’s strengths and weaknessesBarney provides an approach to analyzing the competitive implications of a firm’s INTERNAL strengths and weaknesses
Barney
Resources and Capabilities
What does Barney call these internal attributes?RESOURCES AND CAPABILITIES!What are these resources and capabilities?All of the financial, physical, human, and organizational assets used by a firm to develop, manufacture, and deliver products or services to its customersFinancial resources = debt, equity, retained earnings, etcPhysical resources = machines, manufacturing facilities, and buildingsHuman resources = all of the experience, knowledge, judgment, risk taking propensity, and wisdom of individualsOrganizational resources = the history, relationships, trust, and organizational culture, along with a firm’s formal reporting structure, explicit management control systems, and compensation policies
Barney
Tangible and Intangible Resources
Rothaermel Chapter 4
Tangible and Intangible Resources
Rothaermel Chapter 4SummaryTangible resources = resources that are visible, have physical attributes (buildings, factories, equipment, etc.)Intangible resources = resources that are invisible, have no physical attributes (knowledge, technology, patents)Which is more likely to lead to a competitive advantage? intangible!Google example:Tangible resources valued at $5 billionIntangible resources valued at over $100 billion
Barney’s Approach (VRIO)
Barney says he provides an easy-to-apply approach to analyzing the competitive implications of a firm’s internal strengths and weaknesses. What is this approach?It is essentially a battery of tests to assess the strategic value of each resource of a firmIt lets us really assess whether a resource will provide SUSTAINABLE competitive advantageManagers should address 4 questions about their resources and capabilities:1. The Question of Value2. The Question of Rareness3. The Question of Imitability4. The Question of OrganizationLet’s go through each one….
Barney
The Question of Value
What is this?Do a firm’s resources and capabilities add value by enabling it to exploit opportunities and/or neutralize threats?What’s the basic idea here?Identify what the firm is good at (ie, boosting ∏)Honda’s engines are reliableNorthstar’s veg ...
The document discusses the concepts of capability and competency. Capability is defined as the ability to combine resources like assets, people, and processes to transform inputs into outputs. Competency refers to an organization's ability to achieve its purpose exceptionally well. The document emphasizes that capabilities and core competencies provide the strategic platform for a firm's long-term profitability if they are durable, intransparent, and immobile. A capability-based strategy focuses on developing and exploiting a firm's unique combination of resources and experiences over time.
The document summarizes the literature on the resource-based view (RBV) of strategy. Some key points:
1) The RBV sees a firm's resources and capabilities as the source of competitive advantage, rather than its industry positioning. Resources are heterogeneously distributed between firms and can lead to performance differences.
2) The literature on RBV is diverse, covering topics like organizational structures, managerial competence, technologies, and core competences. A central theme is that resources determine strategy options and long-term success more than external environment changes.
3) Core competences that are rare, valuable, and difficult to imitate are important strategic assets. Management skills in developing, deploying, and
The document discusses internal analysis and the resource-based model of analyzing organizations. It describes how the resource-based model views a firm's resources as the most important factor in gaining competitive advantage. Resources include financial, human, physical and intangible assets. Core competencies are developed from organizational capabilities which in turn are developed from resources. The value chain model also examines how activities within a firm can create value and competitive advantage through either cost advantages or differentiation.
This document discusses knowledge management as a strategic perspective for gaining competitive advantage. It argues that in today's changing business environment, the only sustainable advantage is the ability to leverage knowledge. The document outlines several frameworks for strategic management, emphasizing a knowledge-based view where competitive advantage comes from intangible assets like knowledge resources and capabilities. It discusses reasons for organizations to focus on knowledge management, including responding to market changes and retaining knowledge as employees turnover. The document also describes various knowledge management initiatives organizations can implement, such as creating knowledge portals and communities of practice, to capture both explicit and tacit knowledge to close strategic knowledge gaps and sustain competitive advantage.
This document discusses various theories of strategic management, including the resource-based view (RBV), dynamic capabilities, and the knowledge-based view. The RBV argues that competitive advantage stems from resources that are valuable, rare, imperfectly imitable, and non-substitutable. Dynamic capabilities refer to a firm's ability to integrate, build, and reconfigure resources to address changing markets. The knowledge-based view sees knowledge management as the key to competitive advantage through processes like coordination, communication, and control.
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4.
Strategic Management
Brief History Of S.M.
Industrial Organization
Resource Based View of
the firm and its Model
Literature
Review
of
Competitive advantage
VRIO Frame of work.
Implications
Criticism and Suggestions
5. Overall Goal of Strategic Management
for an Organization
Deploy & allocate resources ==> competitive advantage
7. What is Strategic Management?
Analyze
competitive
situation
Develop strategic goals
Devise plan of action
Allocate resources
Implement plan
Evaluate results
8. Brief history of Strategic
Management
Early Period
o Study of general management
o Largely descriptive
o Not theory based { SWOT ANALYSIS}
Key Authors
o Andrews…
o Christiansen…
o Ansoff.
9. Brief history
of Strategic
Management
First Revolution
o Potter Frame work
o Structure conduct performance
o
model (SCP) & Social Welfare.
o
Apply the SCP logic to strategic
o
Management
o Five forces frame work for
o
industry analysis
o
Generic strategies
10. Brief history of Strategic
Management
Limits of potter frame work
o
Market power versus efficiency (Demsetz)
o
Industry versus firm works (Wal-Mart)
o
The cost of entering attractive industries.
Central Conclusion
It is not possible to evaluate the attractiveness of
industry independent of the resources a firm bring to
the industry.
11. Two Contrasting Approaches
Industrial Organization Model vs. ResourceBased View
o Research provides support for both positions
What drives strategy?
o I/O: External considerations
o RBV: Internal considerations
I/O: Strategy drives resource acquisition
RBV: Strategy determined by resources
13. Industrial Organization (O/I)
Model
o External
environment
determinant
of
is
organizational
primary
strategy
rather than internal decisions of managers
o Environment
presents
threats
&
opportunities
o All competing organizations control or
have equal access to resources
o Resources are highly mobile between
firms
o Organizational success is achieved by
Offering goods & services at lower costs
than competitors
o Differentiating products to bring premium
prices
14. Resource-Based View (RBV)
Definition
An organization’s resources & capabilities, not external environmental
conditions, should be basis for strategic decisions
Competitive advantage is gained through acquisition & value of
organizational resources
Organizations can identify, locate & acquire key valuable resources
Resources are not highly mobile across organizations & once acquired
are retained
Valuable resources are costly to imitate & non-substitutable
15. Definition
Jay Barney
The resource-based view (RBV) argues that firms possess resources, a
subset of which enable them to achieve competitive advantage, and a
subset of those that lead to superior long-term performance. Resources that
are valuable and rare can lead to the creation of competitive advantage.
That advantage can be sustained over longer time periods to the extent that
the firm is able to protect against resource imitation, transfer, or substitution.
In general, empirical studies using the theory have strongly supported the
resource-based view.
16. Resources
Daft, 1983, Barney, J., 1991
Physical capital {Technology, plant, equipment, location, access to raw material}
Human capital {Training, expertise, judgment, intelligence, relationships and
insights of managers and workers}
Organizational capital {Organizational structure, planning, controlling and
coordinating systems, informal relations among groups within the firm and with
outside groups}
Wernerfelt, B., 1984, Hafeez, K., Malak, N. and Zhang,
Y., 2002
Resource = anything that could be thought as a strength or a
weakness for a firm. Tangible and intangible assets tied permanently
or semi-permanently to the firm.
17. Hofer and Schendel, 1978, Grant, R., 1991
Mahoney, J. and Pandian, R., 1992
Physical resources
Financial resources
Human Resources
Organizational resources
Technological resources
Legal resources
Experience
Intangible resources
Hafeez, K., Malak, N. and Zhang, Y., 2002
Physical assets
Intellectual assets
Cultural assets
18. R. B. V. Definitions
Competences
Selznick, 1957
Competence = things that an Organization does especially well in
comparison to its competitors
Hamel, G. and Prahalad, C., 1990
Competence = collective learning of the Organization, especially how to
coordinate diverse production skills and to integrate multiple streams of
technology
Penrose, 1959
Resource = stock. A resource can be defined independently from its use
Capability (competence) = flow. It implies function and activity and cannot be
defined independently from its use. Capabilities are created over time and
may depend on History and use of resources in an extremely complex (“pathdependent”) process
Hrebiniak, L. and Snow, C., 1980
Competence = aggregate of numerous specific activities that the organization
tends to perform better than other Organizations in a similar environment
19. Durand, T. 1996 & (Penrose, 1959)
Elementary assets and resources, tangible and intangible
Plant, equipment, products, software and brands
Cognitive competences, individual and collective, explicit and tacit
Knowledge, know-how, technologies, patents
Organizational processes and routines).
Coordination mechanisms in the organization to combine the action of individuals into
collective tasks and achievements
Organizational structure
Structure including its internal and external dimensions (links with suppliers and
customers)
Identity (Culture)
Corporate culture and behavior in the organization. Its shared values, its rites and
taboos are manifestations of the firm’s identity
20. Porter 1980-1985
Ghemawat 1986
Lieberman and
Montgomery
1988
Hamel and
Prahalad 1994
Competitive
Advantage
Cost OR
Differentiation
Future Position
Capabilities
Technology
Design
Production
Service
Distribution
Polanyi 1962
Rumelt 1984
Teece 1987
Itami 1987
Andrews 1971
Hofer and
Schendel 1978
Prahalad and
Hamel 1990
Ulrich and lake
1991
Resources
Tangible Resources
In-tangible Resources
Competiences
Wernerfelt 1984
Deiricks & Cool
1989
Reed and
Defillipi 1990
Barney 1991
21. Prahalad and Hamel (1990):
core competencies
Management’s ability to consolidate technology and production skills
into competencies so the business can adapt quickly to changing
opportunities/circumstances.
Core competencies = collective learning of the organisation about
prod/tech/markets. e.g. Sony’s miniaturisation skills.
Competencies have to be built over a long period.
They are difficult to identify precisely and hard to imitate.
Many firms fail to identify their own core competencies and so fail to
nurture them properly or exploit them fully.
22. Chandler (1990)
initial risky investments
Chandler (1990): successful giants such as IBM and Bayer derive
from the initial heavy and risky investments in building
organisational knowledge and capabilities which allowed them to
exploit the opportunities available to exploit scale and scope
economies.
23. Two Critical Assumptions of the RBV
Resource Heterogeneity
» different firms may have different resources
Resource Immobility
» it may be costly for firms without certain
resources to acquire or develop them
» some resources may not spread from firm
to firm easily
24. Resource Heterogeneity
Heterogeneity of resources typically occurs as the
result of ‘bundling’ several resources of a firm
Managers of a firm could take resources that seem
homogeneous and ‘bundle’ them to create
heterogeneous combinations
25. Resource Immobility
Resources may be immobile due to natural
and/or intentionally created barriers to imitation
Costs of imitation
o Imperfect imitability: the resource could be
imitated but the cost of doing so would
capitalize the full value of imitation
o Inimitability: the resource cannot be imitated
at any cost
26. The VRIO Framework
If a firm has resources that are:
• Valuable,
• Rare, and
• Costly to Imitate, and…
• The firm is Organized to exploit
these resources,
Then the firm can expect to
enjoy a sustained
competitive advantage.
27. First, the resource must be valuable in the sense that it
exploits opportunities and/or neutralizes threats in the firm’s
environment.
Second, it must be rare among the firm’s current and potential
competitors.
Third, the resource must be difficult for competitors to imitate.
Fourth, the resource must have no strategically equivalent
substitutes.
3-27
28.
29. Competitive advantage
Competitively valuable resources (Collis and Montgomery, 1995)
Reduction of costs,
The exploitation of market opportunities, and/or
The neutralization of competitive threats.
Inimitability -- is the resource hard to copy?
Durability -- how quickly does the resource depreciate?
Approprability -- who captures the value the resource creates?
Substitutability -- can the resource be trumped by another
resource?
Competitive superiority -- whose resource is really better?
30. Stalk, Evans, and Shulman (1992): capabilities
Competitive advantage is based on the ability to respond to
evolving opportunities which depends on business processes or
capabilities. Business success involves choosing the right
capabilities to build, managing them carefully, and exploiting
them
e.g. Honda, Canon.
31. Collis and Montgomery (1995): competing
on resources
Competitive advantage derives ultimately from the ownership of a
valuable resource.
Superior performance derives from developing a ‘competitively
distinct’ set of resources and deploying them in a well conceived
strategy.
Resources can be physical, intangible, or organisational capabilities.
Example: Marks and Spencer (poor timing!)
32. Empirical implications
Henderson and Cockburn (1994) {Why pharmaceuticals innovate
then others.}
Rumelt (1991) { variance Decomposition}.
Mcghan and Potter {Industry effect size can but firm effects is
generally larger.
Barnett et al (1994)
{ why some banks compete out during
recession}.
Ray et al.(2004) {IT and Customer satisfaction in insurance firms}. {IT
and CS management has direct and interaction effects.
Hatch and Dyer (2004) firm specific human capital can create the
competitive advantage .because human capital is imitate.
33. Theoretical extension
Applied to additional phenomenon
Vertical integration and theory of firm (Corner ,1994 , Corner and
Prahalad ,2001, Barany 2002)..
Diversification (wireman and Robbins ).
Complementary extensions {heterogeneity}
HRM
Marketing
Enterpenuership
Operations management.
34. Practical Implications of RBT
Industry attractiveness cant be evaluated without the firm resources.
(South west and Wal-Mart.
Competitive advantage is every employee responsibility (Koch
industries of trading manufacturing investment).
Doing as well as just competition just shows the Mediocrity (Bench
marking).
Product features cant not be used for sustained the competitive
advantage as the ability to produce different features (Sony).
HP.. Mail Box Incorporation.. Xerox.
35. Criticisms on RBV and assessment
Criticisms
Assessment
1- The RBV has no managerial
implications.
1- Not all theories should have
direct
managerial
implications. Through its
wide dissemination, the
RBV has evident impact.
2- The RBV implies infinite
regress.
2- Applies only to abstract
mathematical theories. In an
applied theory such as the
RBV levels are qualitatively
different.
36. Criticisms on RBV and assessment
3. The RBV’s applicability is
too limited
3Generalizing
about
uniqueness is not impossible
by definition. The RBV
applies to small firms and
startups as well, as long as
they strive for an SCA. Path
dependency
is
not
problematic when not taken
to the extreme. The RBV only
applies to firms in predictable
environments.
37. Criticisms on RBV and assessment
4- SCA is not
achievable.
By including dynamic
capabilities, the RBV is
not
purely
static.
Though, it only explains
ex post, not ex ante
sources of SCA. While no
CA can last forever, a
focus on SCA remains
useful.
38. Criticisms on RBV and assessment
The VRIN/O criteria are not always
necessary and not always sufficient to
explain a firm’s SCA.
5- VRIN/O is neither necessary nor
sufficient for SCA.
The RBV does not sufficiently consider
the synergy within resource bundles as a
source of SCA. The RBV does not
sufficiently recognize the role that
judgment
and
mental
models
of
individuals play in value assessment and
creation.
39. Criticisms on RBV and assessment
7- The value of a
resource is too
indeterminate to provide
for useful theory.
The
current
conceptualization
of
value turns the RBV into
a trivial heuristic, an
incomplete theory, or a
tautology.
A
more
subjective and creative
notion of value is
needed.
40. Criticisms on RBV and assessment
Definitions of resources are allinclusive.
8- The definition of
resource is unworkable.
The RBV does not recognize
differences between resources as
inputs and resources that enable
the organization of such inputs.
There is no recognition of how
different types of resources may
contribute to SCA in a different
manner.
41. Suggestions for future research in RBV:
Demarcating and Defining Resources
o Theorize the distinctions between the building, versus the processes
of deploying that capacity.
o Conduct more process-based empirical research within the RBV
frame to probe how resource-based SCA and performance are
related.
o Identify types or characteristics of resources that help refine the
predictions of the RBV – that differ in the manner they contribute to a
firm’s SCA. Specifically:
42. Suggestions for future research in RBV:
o Explore the distinction between rivalries and non-rivalries resources
and the impact of this distinction on the predictions of the RBV.
o Expand on the distinction between resources and integrative
capabilities and on the hierarchical relationship between individual
and collective resources.
43. Suggestions for future research in RBV:
Towards a Subjective and Firm-Specific Notion of
Resource Value
o Investigate the value assessment processes by which new ways to
create and capture novel value are conceived.
o Study whether and how human ideas ignite revolutionary modes of
value creation.
o Study the social influence mechanisms through which entrepreneurs
create value by convincing others of the value of their products.
44. Suggestions for future research in RBV:
The RBV as a Theory of Sustained Competitive
Advantage
o Develop a resource-based explanation of SCA that focuses on the
differences in people’s capacities to identify or imagine and judge the
potential risks and benefits associated with the ownership of resources.
o Develop refined propositions on the relationship between specific
types of resources and a firm’s SCA.
o Study how new resources are selected and how they can be matched
with the existing resources in place in the organization.