2. TOPIC’S
• Analyzing Resources Basics
• Key Factor for success in an industry
• Adding Competitive Values
– The Value Chain & The Value System
• Resource Analysis & Competitive Advantage.
3. Analyzing Resources Basics
RESOURCES:
Resources are Human, financial and Operations.
Means by which the organizations creates “VALUES”
Values like: Salaries for employees, Taxes to Governments
Dividends for Shareholders, etc
Through resources org can distinguish itself among others.
Resources deliver and maintain competitive advantage.
4. Analyzing the resources of an organization involves not only exploring the
role and contribution of the main resources, but also developing an
understanding of two main issues.
First, it is important to explore how resources deliver profits in private
companies and provide services in publicly owned organizations.
Second, it is essential to identify those resources that enable an
organization to compete and survive against competition.
In both cases, such an understanding will form the basis of future strategy
development
5. Key Factor of Success in the Industry
Key factors for success in an industry are those resources,
skills and attributes of the organizations in an industry that
are essential to deliver success in the market place
Key factors concern not only the resources of organization
in the industry but also the competitive environment in
which organization operates. There are three Principle
areas that need to be analyzed
6. OHMAE’s Three C’s
1. Customer:
o Who are the customer ?
o What they really want ?
o What they buy from us or our competitors ?
o What are the segment in market place ?
o Can we direct our strategy towards a group ?
1. Prcie
2. Services
3. Product or service relibility
4. Quality
5. Technical specification
6. Brandig
7. 2. Competition:
o Who are the main competitiors ?
o How Can (Org ) beat or at least survive against
competitors ?
o What are the main factors in the market that influence
competitors ?
( Cost, Price, Quality, Market Dominance, Services,
Distribution).
o How intence is competition ?
o What is necessory to achieve market superiority ?
o Comparison of resources
o How does the (Org) compare on price & quality .etc
8. 3. Corporation:
o What key resources we have & what our Competitiors ?
o What do they deliver to customers ?
o How does the company compare on cost with rivals ?
And also on technology, skills, organizational ability,
marketing.
1. low-cost operation
2. Economies of scale
3. Labor costs
4. Production output level
5. Quality operation
6. Innovative ability
7. Labor/ management relation
8. Technologies and copyrights
9. skills
9. Resoures Analysis And Adding Value
The fundamental role of resources in an organization is to add value.
The added value of a commercial organization is the difference between the maeket
value of its output and the costs of its inputs.
The value added of a non-profit organization is the difference between the services
provided and the costs of the inputs, some of which may be voluntary and have zero
cost.
For commercial organizations, adding value is essential for their future.
Adding value is a minor part of (NOP).
There are only two strategies to raise value added in a commecial organization,
increase the value of its output (sales) or lower the value of its inputs ( labor cost,
capital, material)
Added value is best analyse by considering product range seperately .
10. ADDING COMPETITIVE VALUES
THE VALUE CHAIN
Every organization consist of activities that link together to
develop the value of the business.purchasing supplies, manufacturing, distribution and
marketing of its goods and services.
THE VALUE SYSTEM
The value system shows the wider routes in an industry that add
value to incoming supplies and outgoing distribution and customers. It links the
industry value chain to that of other industries.
The concept of value added added can be used to develop the organization’s
sustainable competitive advantage. There are two main routs.
11. The Value Chain
o It identifies where the value is added in an organization.
o It links the process with the main functional part of the organization
o It assess the contribution of each part overall added value of the
business
o It is used for developing competitive advantage.
12. The Value System
o Organizations are the part of wider system of adding values involving the supply
and distribution value chains and the value chain of customers. This is known as the
value system.
o Competitors may or may not use the same value system
o Some suppliers and distributors will be better than others in the sense that they
offer lower price, faster services more reliable products, etc.
o Real competitive advantage come from using the new or the best suppliers or
distributors.
o Value chain and value system analysis can be complex and time consuming for the
org. This is where the “key factor fo sucess” can be used.
o Key factor may well be those factors that add value to the product and services.
o We concluded that value added can only be raised by either increasing Output & by
lowering Inputs of a company along with key factors.
