This chapter discusses tools for assessing a firm's internal environment, including SWOT analysis, value chain analysis, resource-based view, and financial analysis. It describes how SWOT has limitations and value chain analysis examines primary and support activities. A firm's resources must be valuable, rare, inimitable, and non-substitutable for competitive advantage. Financial ratios, balanced scorecards, and stakeholder perspectives provide methods to evaluate firm performance.
This chapter discusses tools for assessing a firm's internal environment, including SWOT analysis, value chain analysis, resource-based view, and financial analysis. It describes how value chain analysis examines a firm's primary and support activities. The resource-based view considers a firm's tangible, intangible, and capability resources. Financial ratios and the balanced scorecard provide ways to evaluate firm performance from multiple stakeholder perspectives.
Analyzing company's resources and competitive positionMD SALMAN ANJUM
The document discusses analyzing a company's resources and competitive position. It outlines 5 key questions to assess a company's situation: 1) How well is the present strategy working? 2) What are the company's strengths, weaknesses, opportunities, and threats? 3) Are prices and costs competitive? 4) Is the company stronger or weaker than rivals? 5) What strategic issues require attention? It provides approaches to evaluate each question, including using value chain analysis and benchmarking to analyze a company's costs and determine competitiveness.
This document discusses methods for evaluating a company's resources and competitive capabilities, including its strengths, weaknesses, opportunities, and threats (SWOT analysis). It describes assessing a company's strategy, costs, value chain activities, and competitive position relative to rivals. Key questions addressed include how well the current strategy is working, identifying the company's strengths and weaknesses, determining if costs are competitive, and ranking the company's position versus competitors. Conducting in-depth analyses across these areas can help identify strategic issues and guide strategic decision making.
Chap004 understanding company's resources and positionAjit Kumar
This chapter discusses analyzing a company's resources, competitive position, and strategy. It introduces five key questions to guide a situation analysis: 1) How well is the present strategy working? 2) What are the company's strengths, weaknesses, opportunities, and threats? 3) Are prices and costs competitive? 4) Is the company stronger or weaker than rivals? 5) What issues need attention? It then provides frameworks and approaches to answer each question, including assessing strategy performance, conducting a SWOT analysis, using value chain analysis and benchmarking to evaluate costs, and comparing the company to rivals on key success factors.
1) The chapter discusses how companies can marshal resources, establish policies and procedures, adopt best practices, install information systems, and design reward systems to support effective strategy execution.
2) Key aspects include allocating resources to strategic initiatives, establishing empowering policies that channel behaviors towards the strategy, adopting benchmarked best practices for continuous improvement, and installing information systems to mobilize operational data.
3) An effective reward system ties incentives like pay and recognition directly to good strategy execution in order to gain employee commitment.
Business Excellence Model: A Selective Studyijtsrd
Business today is being impacted by multiple forces” economic shocks, atomization of markets and demand, borderless commerce, advances in technology, a sense of hastening, and deconstruction of business. This paper starts the argumentation from how BEMs are dichotomously perceived by adopters, either prescriptive or descriptive. The prescriptive aspect indicates that the adopters treat BEM as a ˜must to achieve business excellence. And the descriptive aspect indicates that the adopters treat BEM as a ˜reference to inspect how the BE of the enterprise is. An effective BEM should be prescriptive-based for the principle of providing a ˜total solution to organizational management. To be this, the deficiencies found in the existing BEMs are firstly reviewed and the arguments in relation to the deficiencies are summarized. Then, four fundamental grounds for a inclusive BEM are raised in response to those deficiencies. A comprehensive model to meet the fundamental premises is finally proposed. Thenmozhi Arukutty"Business Excellence Model: A Selective Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd11050.pdf http://www.ijtsrd.com/management/management-development/11050/business-excellence-model-a-selective-study/thenmozhi-arukutty
1. The chapter discusses performing an internal assessment of a company, including analyzing the company's resources, management, marketing, finance, production, and management information systems.
2. It describes the Resource-Based View theory that a company's internal resources are more important for competitive advantage than external factors.
3. Checklists are provided to help evaluate the strengths and weaknesses within each functional area as part of developing an internal strategic assessment.
This document discusses internal analysis and competitive advantage. It defines competitive advantage as having a higher profit rate than competitors in an industry. Competitive advantage can come from low costs or differentiation. The building blocks of competitive advantage are discussed as efficiency, quality, customer responsiveness, and innovation. These allow companies to create value for customers. Resources, capabilities, and core competencies are also examined in generating competitive advantage. Factors like barriers to imitation, industry dynamics, and a company's strategic commitments influence how long an advantage will last. Reasons for company failure include inertia, prior strategic missteps, and the Icarus paradox. Maintaining advantage requires continuous improvement, benchmarking, and overcoming inertia.
This chapter discusses tools for assessing a firm's internal environment, including SWOT analysis, value chain analysis, resource-based view, and financial analysis. It describes how value chain analysis examines a firm's primary and support activities. The resource-based view considers a firm's tangible, intangible, and capability resources. Financial ratios and the balanced scorecard provide ways to evaluate firm performance from multiple stakeholder perspectives.
Analyzing company's resources and competitive positionMD SALMAN ANJUM
The document discusses analyzing a company's resources and competitive position. It outlines 5 key questions to assess a company's situation: 1) How well is the present strategy working? 2) What are the company's strengths, weaknesses, opportunities, and threats? 3) Are prices and costs competitive? 4) Is the company stronger or weaker than rivals? 5) What strategic issues require attention? It provides approaches to evaluate each question, including using value chain analysis and benchmarking to analyze a company's costs and determine competitiveness.
This document discusses methods for evaluating a company's resources and competitive capabilities, including its strengths, weaknesses, opportunities, and threats (SWOT analysis). It describes assessing a company's strategy, costs, value chain activities, and competitive position relative to rivals. Key questions addressed include how well the current strategy is working, identifying the company's strengths and weaknesses, determining if costs are competitive, and ranking the company's position versus competitors. Conducting in-depth analyses across these areas can help identify strategic issues and guide strategic decision making.
Chap004 understanding company's resources and positionAjit Kumar
This chapter discusses analyzing a company's resources, competitive position, and strategy. It introduces five key questions to guide a situation analysis: 1) How well is the present strategy working? 2) What are the company's strengths, weaknesses, opportunities, and threats? 3) Are prices and costs competitive? 4) Is the company stronger or weaker than rivals? 5) What issues need attention? It then provides frameworks and approaches to answer each question, including assessing strategy performance, conducting a SWOT analysis, using value chain analysis and benchmarking to evaluate costs, and comparing the company to rivals on key success factors.
1) The chapter discusses how companies can marshal resources, establish policies and procedures, adopt best practices, install information systems, and design reward systems to support effective strategy execution.
2) Key aspects include allocating resources to strategic initiatives, establishing empowering policies that channel behaviors towards the strategy, adopting benchmarked best practices for continuous improvement, and installing information systems to mobilize operational data.
3) An effective reward system ties incentives like pay and recognition directly to good strategy execution in order to gain employee commitment.
Business Excellence Model: A Selective Studyijtsrd
Business today is being impacted by multiple forces” economic shocks, atomization of markets and demand, borderless commerce, advances in technology, a sense of hastening, and deconstruction of business. This paper starts the argumentation from how BEMs are dichotomously perceived by adopters, either prescriptive or descriptive. The prescriptive aspect indicates that the adopters treat BEM as a ˜must to achieve business excellence. And the descriptive aspect indicates that the adopters treat BEM as a ˜reference to inspect how the BE of the enterprise is. An effective BEM should be prescriptive-based for the principle of providing a ˜total solution to organizational management. To be this, the deficiencies found in the existing BEMs are firstly reviewed and the arguments in relation to the deficiencies are summarized. Then, four fundamental grounds for a inclusive BEM are raised in response to those deficiencies. A comprehensive model to meet the fundamental premises is finally proposed. Thenmozhi Arukutty"Business Excellence Model: A Selective Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd11050.pdf http://www.ijtsrd.com/management/management-development/11050/business-excellence-model-a-selective-study/thenmozhi-arukutty
1. The chapter discusses performing an internal assessment of a company, including analyzing the company's resources, management, marketing, finance, production, and management information systems.
2. It describes the Resource-Based View theory that a company's internal resources are more important for competitive advantage than external factors.
3. Checklists are provided to help evaluate the strengths and weaknesses within each functional area as part of developing an internal strategic assessment.
This document discusses internal analysis and competitive advantage. It defines competitive advantage as having a higher profit rate than competitors in an industry. Competitive advantage can come from low costs or differentiation. The building blocks of competitive advantage are discussed as efficiency, quality, customer responsiveness, and innovation. These allow companies to create value for customers. Resources, capabilities, and core competencies are also examined in generating competitive advantage. Factors like barriers to imitation, industry dynamics, and a company's strategic commitments influence how long an advantage will last. Reasons for company failure include inertia, prior strategic missteps, and the Icarus paradox. Maintaining advantage requires continuous improvement, benchmarking, and overcoming inertia.
The document discusses analyzing a firm's external environment including the general environment, industry environment, and competitor environment. It describes the components of the general environment and how they can affect firm strategy. It also explains Michael Porter's five forces model for analyzing industry competition including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. Finally, it provides guidance on conducting a competitor analysis by examining a competitor's objectives, strategies, assumptions, and capabilities.
Ldb Plan Your Future_Principato ibm-business-model-innovationlaboratoridalbasso
The document discusses business model innovation and its importance for gaining competitive advantage. It summarizes findings from IBM's Global CEO Study 2006, which found that CEOs are increasingly focusing on business model innovation in addition to traditional types of innovation. Two-thirds of CEOs expect major changes that will require fundamental business changes. Business model innovation offers benefits like operating margin growth, cost reduction, and strategic flexibility. As technology executives, CIOs can play a key role in enabling business model innovation through approaches like deepening their understanding of business processes via componentization, innovating the IT business model, and implementing a flexible infrastructure.
In 3 sentences:
The document summarizes the steps to develop an Internal Factor Evaluation (IFE) Matrix for Ford Motor Company. It lists 10 key internal strengths for Ford and assigns each a weight and rating to calculate the weighted score. This allows Ford to evaluate its major capabilities and competitive advantages such as large manufacturing expansion, improved vehicle quality reducing warranty costs, and strong sales of hybrid vehicles.
Matrix is used in management off organization or we can say it a matrix management within an organization. It is defined as: It is a type of organizational management wherein employees of similar skills are shared for work assignments. Simply stated, it is a structure in which the workforce reports to multiple managers of different roles. It is recognizing that companies have both vertical and horizontal chains of command, for which matrix model is created. The concept of this principle lies in the ability to manage the collaboration of people across various functions and achieve strategic objectives through key projects.
This document discusses evaluating a company's strategy and competitive position. It provides 5 key questions to analyze: [1] How well is the current strategy working? [2] What are the company's strengths, weaknesses, opportunities, and threats? [3] Are prices and costs competitive? [4] Is the company stronger or weaker than rivals? [5] What strategic issues require attention? Tools like value chain analysis, benchmarking, and competitive ratings are presented to assess each area. The analysis helps identify strengths to leverage and weaknesses to address.
This document provides an outline and overview of key concepts from Chapter 3 of the textbook "Strategic Management: Concepts and Cases Arab World Edition". The chapter discusses performing an external assessment, which involves identifying opportunities and threats in a firm's external environment. It covers various forces in the external environment, including economic, social, political, technological, industry and competitive forces. Models for analyzing the external environment include Porter's Five Forces framework and the External Factor Evaluation matrix. The chapter emphasizes the importance of gathering competitive intelligence and understanding rivals' strengths and weaknesses.
How to create sustainable Competitive Advantage using Strategy Mechanism?Petrilau
The company operating in a turbulent environment needs a working strategy mechanism rather than a detailed road map for a road when the environment is fast changing, and topography is unknown
Ansoff’s strategic success formula states that for optimum return on investment, both the aggressiveness of the firm’s strategy and its capabilities must match the turbulence of the environment.
M5 evaluating and competitive positionMentari Pagi
The document discusses evaluating a company's strategy, resources, competitive position, and costs relative to rivals. It provides questions to guide the analysis, including how well the current strategy is working based on qualitative and quantitative assessments, identifying the company's strengths, weaknesses, opportunities, and threats, assessing if prices and costs are competitive using value chain analysis and benchmarking, and determining if the company is stronger or weaker than key rivals by rating them on key success factors. The overall goal is to analyze different components of the company's situation to understand its competitive position.
Strategic management involves determining an organization's long-term goals and plans. It includes analyzing the internal and external environment, formulating strategies, implementing strategies, and evaluating performance. Key aspects of strategic management include identifying the mission and objectives, conducting a SWOT analysis, developing corporate and business-level strategies around areas like growth, stability, and competitive advantage. Current issues involve e-business strategies, customer service strategies, and innovation strategies. Strategic flexibility is the ability to adapt strategies in response to changes in the external environment.
The document discusses conducting an internal audit to identify a company's key strengths and weaknesses. It describes evaluating different functional areas including management, marketing, finance, production, research and development, and management information systems. Financial ratios are also analyzed to assess the company's financial position. The internal audit process involves gathering information from different departments and identifying 10-15 most important strengths and weaknesses to focus on.
This document discusses the competitive profile matrix tool. It explains that the matrix allows companies to compare themselves to competitors across critical success factors. The document outlines the steps to build a competitive profile matrix, including identifying key factors, rating companies on each factor, calculating weighted scores, and comparing total scores. An example matrix compares several colleges based on factors like faculty, infrastructure, placements, brand, and location. The matrix is useful for understanding strengths and weaknesses relative to peers but still requires intuitive judgment.
This document summarizes key topics from Chapter 2 of an organizational behavior textbook, including defining a company's mission, formulating and overseeing a mission statement, agency theory, and approaches to social responsibility. It provides examples of mission statements and discusses how social responsibility and ethics relate to developing a company's mission.
1. The document discusses analyzing a firm's internal environment to understand its unique resources, capabilities, and core competencies that provide competitive advantages.
2. Core competencies are combinations of resources and capabilities that are valuable, rare, costly to imitate, and non-substitutable. They allow firms to neutralize threats or exploit opportunities.
3. Sustainable competitive advantages result from core competencies that satisfy these criteria and are difficult for competitors to replicate due to causal ambiguity or social complexity.
The document discusses strategic capabilities for organizations. It defines strategic capabilities as the resources and competencies needed for an organization to survive and prosper. It outlines different types of resources, competencies, and core competencies. It also discusses how strategic capabilities can provide competitive advantage if they are valuable, rare, inimitable, and non-substitutable. Managers can develop strategic capabilities through activities like value chain analysis, benchmarking, and SWOT analysis.
The document discusses competitive dynamics and rivalry between firms. It defines key concepts like competitors, competitive behavior, and competitive actions/responses. It presents a model of competitive rivalry that examines factors like market commonality, resource similarity, and the drivers, likelihood, and outcomes of attack and response behaviors between firms competing in an industry. It also describes different types of competitive dynamics that can occur in slow, standard, or fast-cycle markets and how they influence competitive advantage.
Strategic management involves analyzing a company's internal strengths and weaknesses as well as external opportunities and threats. Key steps include formulating a mission and objectives, assessing the environment, identifying strategies, and implementing and evaluating plans. Strategic decisions require top management input and large resources, and can impact the long-term prosperity of a firm. Strategies exist at the corporate, business unit, and functional levels. Formality and the roles of managers in strategic management depend on factors like organization size and culture.
The document discusses various business-level strategies that a firm can pursue, including cost leadership, differentiation, and focus strategies. It provides discussion questions and explanations for each strategy. Specifically, it addresses how a cost leadership strategy is developed through tightly controlling costs, how differentiation is achieved by developing unique product features, and when a focused strategy targeting a niche market should be implemented. It also describes the risks and competitive advantages of each strategy in dealing with the five competitive forces. Finally, it discusses the integrated low-cost differentiation strategy and why it may be an increasingly important option.
This document discusses concepts related to strategic management and competitive advantage. It begins by defining the external environment of an organization and identifying various environmental factors. It then discusses Porter's Five Forces model, which analyzes competitive forces within an industry. Next, it covers strategic groups within industries and how competitive changes occur during different stages of industry evolution. It concludes by briefly discussing the impacts of globalization on industry structure.
This document discusses key concepts in strategic management including:
1. It introduces 12 chapters that will cover topics like strategic leadership, internal/external environments, business and corporate level strategies, competitive dynamics, and international strategies.
2. It provides discussion questions at the end of each chapter to engage the reader in the concepts. Questions address what strategy and competitive landscapes are, strategic flexibility, the industrial organization and resource-based models of strategy, and the roles of strategic intent, stakeholders, and top executives.
3. The models of strategy are summarized as the industrial organization model focusing on external environment opportunities and the resource-based model focusing on internal strengths and exploiting them in attractive environments.
The document discusses various methods for demand forecasting including surveys of buyers' intentions, collective opinion/sales force polling, analysis of time series and trend projections, and use of economic indicators. It provides details on each method, such as how to conduct a Delphi survey, calculate moving averages for time series analysis, and derive a regression equation to relate demand to an economic indicator for forecasting. Advantages and disadvantages of each approach are also summarized.
The document provides guidance on writing reflective reports. Reflective reports help students learn from practical experiences by making connections between theory and practice. When writing reflectively, students describe an activity, how they performed it, and evaluate their performance based on what they've learned. Reflective reports also serve as a reference and allow students to consider how they can improve for next time. The document outlines the typical organization of a reflective report, including an introduction, personal report, reflection on action and teaching, identification of gaps, and action plan.
The document discusses analyzing a firm's external environment including the general environment, industry environment, and competitor environment. It describes the components of the general environment and how they can affect firm strategy. It also explains Michael Porter's five forces model for analyzing industry competition including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. Finally, it provides guidance on conducting a competitor analysis by examining a competitor's objectives, strategies, assumptions, and capabilities.
Ldb Plan Your Future_Principato ibm-business-model-innovationlaboratoridalbasso
The document discusses business model innovation and its importance for gaining competitive advantage. It summarizes findings from IBM's Global CEO Study 2006, which found that CEOs are increasingly focusing on business model innovation in addition to traditional types of innovation. Two-thirds of CEOs expect major changes that will require fundamental business changes. Business model innovation offers benefits like operating margin growth, cost reduction, and strategic flexibility. As technology executives, CIOs can play a key role in enabling business model innovation through approaches like deepening their understanding of business processes via componentization, innovating the IT business model, and implementing a flexible infrastructure.
In 3 sentences:
The document summarizes the steps to develop an Internal Factor Evaluation (IFE) Matrix for Ford Motor Company. It lists 10 key internal strengths for Ford and assigns each a weight and rating to calculate the weighted score. This allows Ford to evaluate its major capabilities and competitive advantages such as large manufacturing expansion, improved vehicle quality reducing warranty costs, and strong sales of hybrid vehicles.
Matrix is used in management off organization or we can say it a matrix management within an organization. It is defined as: It is a type of organizational management wherein employees of similar skills are shared for work assignments. Simply stated, it is a structure in which the workforce reports to multiple managers of different roles. It is recognizing that companies have both vertical and horizontal chains of command, for which matrix model is created. The concept of this principle lies in the ability to manage the collaboration of people across various functions and achieve strategic objectives through key projects.
This document discusses evaluating a company's strategy and competitive position. It provides 5 key questions to analyze: [1] How well is the current strategy working? [2] What are the company's strengths, weaknesses, opportunities, and threats? [3] Are prices and costs competitive? [4] Is the company stronger or weaker than rivals? [5] What strategic issues require attention? Tools like value chain analysis, benchmarking, and competitive ratings are presented to assess each area. The analysis helps identify strengths to leverage and weaknesses to address.
This document provides an outline and overview of key concepts from Chapter 3 of the textbook "Strategic Management: Concepts and Cases Arab World Edition". The chapter discusses performing an external assessment, which involves identifying opportunities and threats in a firm's external environment. It covers various forces in the external environment, including economic, social, political, technological, industry and competitive forces. Models for analyzing the external environment include Porter's Five Forces framework and the External Factor Evaluation matrix. The chapter emphasizes the importance of gathering competitive intelligence and understanding rivals' strengths and weaknesses.
How to create sustainable Competitive Advantage using Strategy Mechanism?Petrilau
The company operating in a turbulent environment needs a working strategy mechanism rather than a detailed road map for a road when the environment is fast changing, and topography is unknown
Ansoff’s strategic success formula states that for optimum return on investment, both the aggressiveness of the firm’s strategy and its capabilities must match the turbulence of the environment.
M5 evaluating and competitive positionMentari Pagi
The document discusses evaluating a company's strategy, resources, competitive position, and costs relative to rivals. It provides questions to guide the analysis, including how well the current strategy is working based on qualitative and quantitative assessments, identifying the company's strengths, weaknesses, opportunities, and threats, assessing if prices and costs are competitive using value chain analysis and benchmarking, and determining if the company is stronger or weaker than key rivals by rating them on key success factors. The overall goal is to analyze different components of the company's situation to understand its competitive position.
Strategic management involves determining an organization's long-term goals and plans. It includes analyzing the internal and external environment, formulating strategies, implementing strategies, and evaluating performance. Key aspects of strategic management include identifying the mission and objectives, conducting a SWOT analysis, developing corporate and business-level strategies around areas like growth, stability, and competitive advantage. Current issues involve e-business strategies, customer service strategies, and innovation strategies. Strategic flexibility is the ability to adapt strategies in response to changes in the external environment.
The document discusses conducting an internal audit to identify a company's key strengths and weaknesses. It describes evaluating different functional areas including management, marketing, finance, production, research and development, and management information systems. Financial ratios are also analyzed to assess the company's financial position. The internal audit process involves gathering information from different departments and identifying 10-15 most important strengths and weaknesses to focus on.
This document discusses the competitive profile matrix tool. It explains that the matrix allows companies to compare themselves to competitors across critical success factors. The document outlines the steps to build a competitive profile matrix, including identifying key factors, rating companies on each factor, calculating weighted scores, and comparing total scores. An example matrix compares several colleges based on factors like faculty, infrastructure, placements, brand, and location. The matrix is useful for understanding strengths and weaknesses relative to peers but still requires intuitive judgment.
This document summarizes key topics from Chapter 2 of an organizational behavior textbook, including defining a company's mission, formulating and overseeing a mission statement, agency theory, and approaches to social responsibility. It provides examples of mission statements and discusses how social responsibility and ethics relate to developing a company's mission.
1. The document discusses analyzing a firm's internal environment to understand its unique resources, capabilities, and core competencies that provide competitive advantages.
2. Core competencies are combinations of resources and capabilities that are valuable, rare, costly to imitate, and non-substitutable. They allow firms to neutralize threats or exploit opportunities.
3. Sustainable competitive advantages result from core competencies that satisfy these criteria and are difficult for competitors to replicate due to causal ambiguity or social complexity.
The document discusses strategic capabilities for organizations. It defines strategic capabilities as the resources and competencies needed for an organization to survive and prosper. It outlines different types of resources, competencies, and core competencies. It also discusses how strategic capabilities can provide competitive advantage if they are valuable, rare, inimitable, and non-substitutable. Managers can develop strategic capabilities through activities like value chain analysis, benchmarking, and SWOT analysis.
The document discusses competitive dynamics and rivalry between firms. It defines key concepts like competitors, competitive behavior, and competitive actions/responses. It presents a model of competitive rivalry that examines factors like market commonality, resource similarity, and the drivers, likelihood, and outcomes of attack and response behaviors between firms competing in an industry. It also describes different types of competitive dynamics that can occur in slow, standard, or fast-cycle markets and how they influence competitive advantage.
Strategic management involves analyzing a company's internal strengths and weaknesses as well as external opportunities and threats. Key steps include formulating a mission and objectives, assessing the environment, identifying strategies, and implementing and evaluating plans. Strategic decisions require top management input and large resources, and can impact the long-term prosperity of a firm. Strategies exist at the corporate, business unit, and functional levels. Formality and the roles of managers in strategic management depend on factors like organization size and culture.
The document discusses various business-level strategies that a firm can pursue, including cost leadership, differentiation, and focus strategies. It provides discussion questions and explanations for each strategy. Specifically, it addresses how a cost leadership strategy is developed through tightly controlling costs, how differentiation is achieved by developing unique product features, and when a focused strategy targeting a niche market should be implemented. It also describes the risks and competitive advantages of each strategy in dealing with the five competitive forces. Finally, it discusses the integrated low-cost differentiation strategy and why it may be an increasingly important option.
This document discusses concepts related to strategic management and competitive advantage. It begins by defining the external environment of an organization and identifying various environmental factors. It then discusses Porter's Five Forces model, which analyzes competitive forces within an industry. Next, it covers strategic groups within industries and how competitive changes occur during different stages of industry evolution. It concludes by briefly discussing the impacts of globalization on industry structure.
This document discusses key concepts in strategic management including:
1. It introduces 12 chapters that will cover topics like strategic leadership, internal/external environments, business and corporate level strategies, competitive dynamics, and international strategies.
2. It provides discussion questions at the end of each chapter to engage the reader in the concepts. Questions address what strategy and competitive landscapes are, strategic flexibility, the industrial organization and resource-based models of strategy, and the roles of strategic intent, stakeholders, and top executives.
3. The models of strategy are summarized as the industrial organization model focusing on external environment opportunities and the resource-based model focusing on internal strengths and exploiting them in attractive environments.
The document discusses various methods for demand forecasting including surveys of buyers' intentions, collective opinion/sales force polling, analysis of time series and trend projections, and use of economic indicators. It provides details on each method, such as how to conduct a Delphi survey, calculate moving averages for time series analysis, and derive a regression equation to relate demand to an economic indicator for forecasting. Advantages and disadvantages of each approach are also summarized.
The document provides guidance on writing reflective reports. Reflective reports help students learn from practical experiences by making connections between theory and practice. When writing reflectively, students describe an activity, how they performed it, and evaluate their performance based on what they've learned. Reflective reports also serve as a reference and allow students to consider how they can improve for next time. The document outlines the typical organization of a reflective report, including an introduction, personal report, reflection on action and teaching, identification of gaps, and action plan.
This document provides an overview of sales forecasting methods. It begins with introducing the speaker, Magdy Abdelsattar, and his contact information. The document then outlines the objectives of the training, which are to explain what sales forecasting is, why it is important, how the process works, and to introduce different forecasting methods and how to apply them. Both qualitative and quantitative forecasting methods are discussed at a high level, including Delphi technique, expert judgment, scenario writing, and time series analysis.
The document provides an overview of the public health model (PHM). It defines public health and explains that public health aims to provide conditions for population-level health as opposed to focusing only on individual patients or diseases. It then defines the PHM as a model that comprehensively addresses health or social problems by considering human and environmental factors and identifying causes to suggest interventions. Key aspects of the PHM are that it takes a population-level approach and focuses on prevention, promotion, surveillance and service evaluation in addition to traditional areas like diagnosis and treatment. Examples of applying the PHM to violence prevention and child welfare services are also provided.
this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies
This document provides an overview of probiotics and prebiotics. It discusses the history of probiotics beginning with Elie Metchnikoff's conceptualization in the early 20th century. Examples of commonly used probiotic bacteria like Bifidobacterium and Lactobacillus are provided. The mechanisms of action of probiotics and examples of prebiotics like inulin and fructooligosaccharides are summarized. Finally, clinical applications of probiotics and prebiotics in managing conditions like antibiotic-associated diarrhea, lactose intolerance, and hypercholesterolemia are briefly described.
- Univariate analysis refers to analyzing one variable at a time using statistical measures like proportions, percentages, means, medians, and modes to describe data.
- These measures provide a "snapshot" of a variable through tools like frequency tables and charts to understand patterns and the distribution of cases.
- Measures of central tendency like the mean, median and mode indicate typical or average values, while measures of dispersion like the standard deviation and range indicate how spread out or varied the data are around central values.
This document provides an overview of univariate analysis. It defines key terms like variables, scales of measurement, and types of univariate analysis. It describes descriptive statistics like measures of central tendency (mean, median, mode) and dispersion (range, variance, standard deviation). It also discusses inferential univariate analysis and appropriate statistical tests for different variable types and research questions, including z-tests, t-tests, and chi-square tests. Examples are provided to illustrate calculating and interpreting these statistics.
Dana Wheeler is preparing recommendations for The Fashion Channel's new segmentation and positioning strategy to strengthen its competitive position against main rivals Lifetime and CNN. Three scenarios are suggested: 1) Targeting multiple segments including Fashionistas, Planners & Shoppers and Situationalists with a 20% rating increase but 10% CPM decrease. 2) Targeting just Fashionistas with a 20% rating decrease but 75% CPM increase and $15M in new programming. 3) Targeting Fashionistas and Planners & Shoppers with a 20% rating increase and 25% CPM increase requiring $20M in new programming. Scenario 3 is estimated to generate the highest net income of $168.8M
This chapter discusses tools for assessing a firm's internal environment, including SWOT analysis, value chain analysis, resource-based view, and performance evaluation methods like financial ratio analysis and the balanced scorecard. It describes how value chain analysis examines a firm's primary and support activities, and how resources and capabilities contribute to competitive advantage. The chapter also covers limitations of various assessment tools and emphasizes integrating perspectives from customers, internal processes, innovation, and financials in a balanced scorecard approach.
Business Driven Information Systems 8th Edition by Paige Baltzan solution man...ssuserf63bd7
https://qidiantiku.com/solution-manual-for-business-driven-information-systems-8th-edition-by-paige-baltzan.shtml
Full download please contact u84757(at)protonmail(dot)com or qidiantiku(dot)com
https://qidiantiku.com/solution-manual-for-business-driven-information-systems-8th-edition-by-paige-baltzan.shtml
This document discusses strategic analysis tools that firms use to understand their competitive environment. It describes Porter's Five Forces framework for analyzing industry competition and identifies the five competitive forces as industry rivalry, threat of new entrants, threat of substitutes, power of suppliers, and power of buyers. It also discusses the SWOT analysis tool for evaluating a firm's internal strengths and weaknesses as well as external opportunities and threats. Finally, it introduces the VRIO framework for assessing whether a firm's resources and capabilities can be sources of competitive advantage.
The document summarizes a presentation on using benchmarks to accelerate process improvement. The presentation discusses defining benchmarks and their benefits, providing examples of why cost and schedule data without quality metrics can be misleading. It emphasizes the need for meaningful size attributes and benchmark data to support process improvement. The presentation aims to provide insights into making measurements useful by focusing on the five C's of sizing measures.
Importance Of Having Clearly Articulated Business Model | Business Model Inno...FaHaD .H. NooR
This document outlines the key components of an effective business model:
1. It defines a business model as a firm's plan for how it competes, uses resources, structures relationships, interfaces with customers, and creates value.
2. It identifies the four major components of a business model as the core strategy, strategic resources, partnership network, and customer interface.
3. It emphasizes that having a clearly articulated business model is important because it serves as an ongoing feasibility assessment, focuses attention on how elements fit together, and articulates the firm's core logic to stakeholders.
Strategic management and competitive dynamics Hamzah Rehail
This document provides an overview of strategic management and competitive dynamics. It discusses the strategic management process, which includes strategy formulation, implementation, and evaluation. Key aspects of strategy formulation are analyzing external opportunities/threats and internal strengths/weaknesses, developing long-term objectives and strategies. Porter's Five Forces model is also summarized. The document then discusses competitive dynamics, including analyzing competitors, drivers of competitive actions, strategic vs. tactical moves, first and second movers, and how organizational size, reputation, and market cycles impact competitive behaviors.
The document discusses the total environment of a firm, including its internal and external environments. It analyzes the firm's internal environment through a value chain analysis and resource-based view. This includes examining the firm's primary and support activities in the value chain as well as its tangible, intangible, and organizational resources. It then discusses analyzing the external environment, including environmental scanning, monitoring, forecasting, and a SWOT analysis. It outlines the general environment segments of demographics, sociocultural, political/legal, and technological factors.
Pagedundee.ac.ukDr. Andrew G. RossLecture Internal.docxLacieKlineeb
Pagedundee.ac.uk
Dr. Andrew G. Ross
Lecture
Internal Analysis: Resources,
Capabilities & Core Competencies
1
One of the UK’s top 20 universities (Guardian University Guide 2021)
Pagedundee.ac.uk
Learning Outcomes
Understand the difference between resources, capabilities, and core
competencies
Assess the different types of resources available to organisations
Introduce the resource based view and use the VRIN framework to analyse a
firm’s core competencies
Introduce the value chain as an intermediary step in the identification of core
competencies
Assess the value chain linkages that help organisations sustain competitive
advantage
Carry out a SWOT analysis as the culmination of an organisation’s strategic
position analysis.
2
Pagedundee.ac.uk
Strategic Position Analysis
Strategic position considers the current position of the firm in the
light of future changes in the external global environment and its
internal resource capabilities.
How to analyse an organisation’s position in the external, global
environment (Last week’s lecture)
How to analyse a firm’s internal resources, capabilities and
core competencies (This week).
3
Pagedundee.ac.uk
Key Questions for Managers
How do we build and improve our resources, capabilities and
core competencies to create superior value for our
customers?
Success in creating superior customer value means:
- customers are willing to pay more for our product/service
than it costs us to deliver (the profit margin);
- and that this value created is better than that of our rivals
because we are exploiting our unique capabilities
4
Pagedundee.ac.uk
Components of Internal Analysis
5
RESOURCES Audit
COMPETENCES/CAPABILITIES Value Chain Analysis
CORE COMPETENCES VRIN test
Value Chain Linkages
COMPETITIVE ADVANTAGE
Pagedundee.ac.uk
Resources: what a firm has…
Tangible
– Assets that can be seen, touched and quantified
– Examples include equipment, facilities, distribution
centres, formal reporting structures
Intangible
– Assets rooted deeply in the firm’s history, accumulated
over time
– In comparison to ‘tangible’ resources, usually can’t be
seen or touched
– Examples include knowledge, trusts, organisational
routines, capabilities, innovation, brand name,
reputation
6
Pagedundee.ac.uk
Capabilities: What a firm Does with its resources...
When two or more resources are combined they create
capabilities.
When capabilities are combined in unique combinations they
create core competencies.
Analyse capabilities using Porter’s Value Chain (VC)
Use linkages between VC activities to help identify processes
which are the basis for core competencies
7
Pagedundee.ac.uk
Core Competencies: What a firm does…that is
Strategically Valuable
Core Competencies…
• are the essence of what makes a firm unique in its a.
Business analysis tips as per Gabrielle Rusignuolo are helpful in our growth of business. These business analysis tips are beneficial for promoting our business and take it at top most.
The document outlines the strategic management process for developing a competitive business model and strategic plan. It discusses 9 key steps: 1) developing a vision and mission statement, 2) assessing strengths and weaknesses, 3) scanning for opportunities and threats, 4) identifying success factors, 5) analyzing competitors, 6) creating goals and objectives, 7) formulating strategies, 8) translating strategies into action plans, and 9) establishing controls. The overall process provides a framework to guide a company in accomplishing its mission and goals through developing a sustainable competitive advantage.
Strategic management chapter 5 and 6 note for bba viiSanjeev Bhandari
The document discusses evaluating company resources and competitive capabilities. It identifies various types of strengths a company can have, including skills, physical and organizational assets, intangible assets, and competitive capabilities. Strengths are evaluated based on how hard they are to copy, how long they last, and how superior they are to competitors. Weaknesses and deficiencies are also identified. The document discusses identifying market opportunities and threats to a company. It evaluates assessing whether a company's costs are competitive through tools like strategic cost analysis and value chain analysis. Reasons for cost differences between companies are provided. The document defines strategic options like generic strategies, grand strategies, low-cost strategy, differentiation strategy, best-cost strategy, focus strategy, and various
The document discusses various frameworks for conducting internal analysis, including the resource-based view of the firm, value chain analysis, and SWOT analysis. The resource-based view examines a firm's unique bundle of tangible, intangible, and organizational resources. Value chain analysis divides a business into activities to better understand sources of competitive advantage. SWOT analysis assesses a firm's strengths, weaknesses, opportunities, and threats to develop effective strategies.
S9-2bx Supplementary Strategy and Marketing Deck from Tool Box (abridged).pptLittlepLittlep
The document outlines concepts and frameworks for developing marketing and strategy, including:
1) It discusses Porter's five forces model, value chain analysis, generic strategies, and the importance of competitive advantage.
2) Key aspects of marketing such as segmentation, targeting, positioning (STP), brands, and measuring performance are addressed.
3) Conducting an industry analysis and assessing the company are presented as important initial steps for strategic planning.
This document provides an overview of an introductory workshop on suppliers and partners as it relates to organizational excellence. The workshop will teach participants about best practices for managing suppliers and partners and have participants self-assess their organization's performance in these areas in order to develop an improvement plan. The document outlines the agenda and materials that will be used in the workshop, including frameworks, case studies, exercises and assessments.
This document provides an overview of SWOT analysis, a tool used to evaluate an organization's internal strengths and weaknesses, and external opportunities and threats. It describes how to conduct an internal analysis by examining resources, capabilities, and core competencies. Key areas of an organization's internal environment that are assessed include financial, managerial, infrastructural, supplier, manufacturing, distribution, marketing, innovation resources, and brand equity. The objective is to identify the unique sources of competitive advantage. The document also discusses how to analyze external factors such as competitors, industry trends, and the broader business environment to identify opportunities and threats.
The document discusses performing internal and external assessments for strategic management. It covers analyzing external factors like economic, social, technological and competitive conditions. Key internal factors include distinctive competencies and resources. The resource-based view argues internal resources are most important for competitive advantage. Functional areas like management, marketing, finance and production are also assessed internally. Tools like the EFE matrix and IFE matrix are used to evaluate external opportunities/threats and internal strengths/weaknesses.
Private Equity Due Diligence - Think OperationalRamkumar ,PMP
Operational due diligence is important for private equity firms to identify areas for improvement in target companies, such as purchasing, supply chain, and sales. This allows firms to make informed buying decisions. Key areas of focus include sales and marketing capabilities, procurement spending analysis, manufacturing and supply chain network optimization, leveraging technology in administration, and assessing service provider risks. HCL recommends a systematic approach over 6-8 weeks involving subject matter experts and industry benchmarks to comprehensively evaluate a target company's performance, value creation potential, and risks.
The document discusses various frameworks for analyzing a company's strategic capabilities, including its resources, competencies, core competencies, and thresholds and distinctive capabilities. It also covers tools for diagnosing strategic capabilities such as benchmarking, value chain analysis, value networks, and activity system mapping. Finally, it discusses managing strategic capabilities through internal and external development, ceasing non-core activities, and monitoring outputs and benefits.
CA in Patna is a team of professional Chartered Accountant which are providing best services like Company Registration, Income Tax Return, Sales Tax Consultants, Bank Audit and other services specially in Patna.
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This document provides steps for designing a website. It begins by explaining the purpose of a website and identifying key considerations like audience and goals. It then lists rules for website design, such as understanding the user perspective and respecting interface conventions. The document outlines the website design process, including planning, following design rules, using website building tools to create pages, and types of pages. It also lists common website development languages and tools. The document concludes by encouraging the use of templates and pre-designed elements to efficiently build a website.
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Css Founder is Website Designing Company working with the mission of Website For Everyone Website Start From 999/-* More Packages are available. we are best company in website designing company in Delhi, as we are also working in Website Designing company in Mumbai.
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Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
3. Learning Objectives
After reading this chapter, you should have a good
understanding of:
LO3.1 The benefits and limitations of SWOT analysis in
conducting an internal analysis of the firm.
LO3.2 The primary and support activities of a firm’s value
chain.
LO3.3 How value-chain analysis can help managers create
value by investigating relationships among activities
within the firm and between the firm and its customers
and suppliers.
LO3.4 The resource-based view of the firm and the
different types of tangible and intangible resources, as
well as organizational capabilities.
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4. Learning Objectives (cont.)
LO 3.5 The four criteria that a firm’s resources must
possess to maintain a sustainable advantage and
how value created can be appropriated by
employees.
LO 3.6 The usefulness of financial ratio analysis, its
inherent limitations, and how to make meaningful
comparisons of performance across firms.
LO 3.7 The value of the “balanced scorecard” in
recognizing how the interests of a variety of
stakeholders can be interrelated.
LO 3.8 How firms are using Internet technologies to add
value and achieve unique advantages. (Appendix)
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5. The Limitations of SWOT Analysis
Strengths may not lead to an advantage
SWOT’s focus on the external environment is
too narrow
SWOT gives a one-shot view of a moving
target
SWOT overemphasizes a single dimension of
strategy
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6. Value-Chain Analysis
Value-chain analysis
a strategic analysis of an organization that
uses value creating activities.
Value is the amount that buyers are
willing to pay for what a firm provides
them and is measured by total revenue
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7. Value-Chain Analysis
Primary activities
contribute to the physical creation of the
product or service, its sale and transfer to the
buyer, and its service after the sale.
inbound logistics, operations, outbound
logistics, marketing and sales, and service
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8. QUESTION
In assessing its primary activities, an airline
would examine:
A. Employee training programs
B. Baggage handling
C. Criteria for lease versus purchase decisions
D. The effectiveness of its lobbying activities
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9. Value-Chain Analysis
Support activities
activities of the value chain that either add
value by themselves or add value through
important relationships with both primary
activities and other support activities
procurement, technology development,
human resource management, and general
administration.
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11. Primary Activity: Inbound Logistics
Associated with receiving, storing and
distributing inputs to the product
Location of distribution facilities
Warehouse layout
and designs
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12. Primary Activity: Operations
Associated with transforming inputs into
the final product form
Efficient plant operations
Incorporation of appropriate process
technology
Efficient plant layout and workflow design
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13. Primary Activity: Outbound Logistics
Associated with collecting, storing, and
distributing the product or service to
buyers
Effective shipping processes to provide quick
delivery and minimize damages
Shipping of goods in large lot sizes to
minimize transportation costs.
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14. Primary Activity: Marketing and Sales
Associated with purchases of products
and services by end users and the
inducements used to get them to make
purchases
Innovative approaches to promotion and
advertising
Proper identification of customer segments
and needs
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15. Primary Activity: Service
Associated with providing service to
enhance or maintain the value of the
product
Quick response to customer needs and
emergencies
Quality of service
personnel and
ongoing training
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16. Support Activity: Procurement
Function of purchasing inputs used in the
firm’s value chain
Procurement of raw material inputs
Development of collaborative “win-win”
relationships with suppliers
Analysis and selection of alternate sources
of inputs to minimize dependence on one
supplier
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17. Support Activity:
Human Resource Management
Activities involved in the recruiting, hiring,
training, development, and compensation
of all types of personnel
Effective recruiting, development, and
retention mechanisms for employees
Quality relations with trade unions
Reward and incentive programs to motivate
all employees
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18. Support Activity:
Technology Development
Related to a wide range of activities and
those embodied in processes and
equipment and the product itself
Effective R&D activities for process and
product initiatives
Positive collaborative relationships between
R&D and other departments
Excellent professional qualifications of
personnel
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19. Support Activity:
General Administration
Typically supports the entire value chain
and not individual activities
Effective planning systems
Excellent relationships with diverse
stakeholder groups
Effective information technology to integrate
value-creating activities
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20. Interrelationships among Value-Chain Activities
within and across Organizations
Interrelationships
among activities
within the firm
Relationships
among activities
within the firm and
with other
organization (e.g.,
customers and
suppliers)
3-20
Two levels
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21. Value Chains in Service Industries
3-21
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Exhibit 3.4
22. Resource-Based View of the Firm
Resource-based view of the firm
perspective that firms’ competitive
advantages are due to their endowment of
strategic resources that are valuable, rare,
costly to imitate, and costly to substitute.
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23. Resource-Based View of the Firm
Two perspectives
The internal analysis of phenomena within a
company
An external analysis of the industry and its
competitive environment
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24. Types of Resources
Tangible resources
organizational assets that are relatively easy
to identify, including physical assets, financial
resources, organizational resources, and
technological resources.
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25. Types of Resources
Intangible resources organizational
assets that are difficult to identify and
account for and are typically embedded in
unique routines and practices, including
human resources, innovation resources, and
reputation resources.
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26. Types of Resources
Organizational
capabilities
The competencies
and skills that a firm
employs to
transform inputs into
outputs.
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27. QUESTION
Gillette combines several technologies to attain
unparalleled success in the wet shaving industry.
This is an example of their
A. Tangible resources
B. Intangible resources
C. Organizational capabilities
D. Strong primary activities
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28. Firm Resources and Sustainable
Competitive Advantages
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.
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29. Firm Resources and Sustainable
Competitive Advantages
Third, the resource must be difficult for
competitors to imitate.
Fourth, the resource must have no
strategically equivalent substitutes.
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31. The Generation and Distribution of a
Firm’s Profits
Four factors help explain the extent to which
employees and managers will be able to obtain a
proportionately high level of the profits that they
generate
Employee bargaining power
Employee replacement cost
Employee exit costs
Manager bargaining power
3-31
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32. Evaluating Firm Performance
Financial ratio
analysis
Balance sheet
Income statement
Historical
comparison
Comparison with
industry norms
Comparison with
key competitors
Stakeholder
perspective
Employees
Customers
Owners
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33. Financial Ratio Analysis
Five types of financial ratios
Short-term solvency or liquidity
Long-term solvency measures
Asset management (or turnover)
Profitability
Market value
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34. Financial Ratio Analysis
Historical comparisons
Comparison with industry norms
Comparison with key competitors
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35. Five Types of Financial Ratios
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36. The Balance Scorecard
Provides a meaningful integration of
many issues that come into evaluating a
firm’s performance
Four key perspectives
How do customers see us?
What must we excel at?
Can we continue to improve and create
value?
How do we look to shareholders?
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38. Internal Business Perspective
Processes
Decisions
Actions
Coordination
Resources and
capabilities
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39. Innovation and Learning Perspective
Introduction of new products and services
Greater value for customers
Increased operating efficiencies
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41. Potential Limitations of the
Balanced Scorecard
Lack of a clear strategy
Limited or ineffective executive sponsorship
Too much emphasis on financial measures
rather than non-financial measures
Poor data on actual performance
Inappropriate links to scorecard measures to
compensation
Inconsistent or inappropriate terminology
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Editor's Notes
Creating value for buyers that exceeds the costs of production is a key concept used in analyzing a firm’s competitive position.
B – baggage handling
Associated with receiving, storing and distributing inputs to the product
Location of distribution facilities
Material and inventory control systems
Systems to reduce time to send “returns” to suppliers
Warehouse layout and designs
Associated with transforming inputs into the final product form
Efficient plant operations
Incorporation of appropriate process technology
Quality production control systems
Efficient plant layout and workflow design
Associated with collecting, storing, and distributing the product or service to buyers
Effective shipping processes to provide quick delivery and minimize damages
Efficient finished goods warehousing processes
Shipping of goods in large lot sizes to minimize transportation costs.
Quality material handling equipment
Associated with purchases of products and services by end users and the inducements used to get them to make purchases
Highly motivated and competent sales force
Innovative approaches to promotion and advertising
Selection of most appropriate distribution channels
Proper identification of customer segments and needs
Effective pricing strategies
Associated with providing service to enhance or maintain the value of the product
Effective use of procedures to solicit customer feedback and to act on information
Quick response to customer needs and emergencies
Ability to furnish replacement parts
Effective management of parts and equipment inventory
Quality of service personnel and ongoing training
Warranty and guarantee policies
Function of purchasing inputs used in the firm’s value chain
Procurement of raw material inputs
Development of collaborative “win-win” relationships with suppliers
Effective procedures to purchase advertising and media services
Analysis and selection of alternate sources of inputs to minimize dependence on one supplier
Ability to make proper lease versus buy decisions
Activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel
Effective recruiting, development, and retention mechanisms for employees
Quality relations with trade unions
Quality work environment to maximize overall employee performance and minimize absenteeism
Reward and incentive programs to motivate all employees
Related to a wide range of activities and those embodied in processes and equipment and the product itself
Effective R&D activities for process and product initiatives
Positive collaborative relationships between R&D and other departments
State-of-the art facilities and equipment
Culture to enhance creativity and innovation
Excellent professional qualifications of personnel
Ability to meet critical deadlines
Typically supports the entire value chain and not individual activities
Effective planning systems
Ability of top management to anticipate and act on key environmental trends and events
Ability to obtain low-cost funds for capital expenditures and working capital
Excellent relationships with diverse stakeholder groups
Ability to coordinate and integrate activities across the value chain
Highly visible to inculcate organizational culture, reputation, and values
Tangible Resources
Financial
• Firm’s cash account and cash equivalents.
• Firm’s capacity to raise equity.
• Firm’s borrowing capacity.
Physical
• Modern plant and facilities.
• Favorable manufacturing locations.
• State-of-the-art machinery and equipment.
Technological
• Trade secrets.
• Innovative production processes.
• Patents, copyrights, trademarks.
Organizational
• Effective strategic planning processes.
• Excellent evaluation and control systems.
Intangible Resources
Human
• Experience and capabilities of employees.
• Trust.
• Managerial skills.
• Firm-specific practices and procedures.
Innovation and creativity
• Technical and scientific skills.
• Innovation capacities.
Reputation
• Brand name.
• Reputation with customers for quality and reliability.
• Reputation with suppliers for fairness, non–zero-sum
relationships.
Organizational Capabilities
• Firm competencies or skills the firm employs to transfer inputs to outputs.
• Capacity to combine tangible and intangible resources, using organizational
processes to attain desired end.
EXAMPLES:
• Outstanding customer service.
• Excellent product development capabilities.
• Innovativeness of products and services.
• Ability to hire, motivate, and retain human capital.
C – organizational capabilities
path dependency. This simply means that resources are unique and
therefore scarce because of all that has happened along the path followed in their development
and/or accumulation.
causal ambiguity. This
means that would-be competitors may be thwarted because it is impossible to disentangle
the causes (or possible explanations) of either what the valuable resource is or how it can
be re-created.
social complexity
a characteristic of a
firm’s resources that
is costly to imitate
because the social
engineering required
is beyond the capability
of competitors,
including interpersonal
relations
among managers,
organizational culture,
and reputation
with suppliers and
customers.
• Employee Bargaining Power. If employees are vital to forming a firm’s unique
capability, they will earn disproportionately high wages. For example, marketing
professionals may have access to valuable information that helps them to understand
the intricacies of customer demands and expectations, or engineers may understand
unique technical aspects of the products or services. Additionally, in some industries
such as consulting, advertising, and tax preparation, clients tend to be very loyal
to individual professionals employed by the firm, instead of to the firm itself. This
enables them to “take the clients with them” if they leave. This enhances their bargaining
power.
• Employee Replacement Cost. If employees’ skills are idiosyncratic and rare (a source
of resource-based advantages), they should have high bargaining power based on the
high cost required by the firm to replace them. For example, Raymond Ozzie, the
software designer who was critical in the development of Lotus Notes, was able to
dictate the terms under which IBM acquired Lotus.
• Employee Exit Costs. This factor may tend to reduce an employee’s bargaining
power. An individual may face high personal costs when leaving the organization.
Thus, that individual’s threat of leaving may not be credible. In addition, an
employee’s expertise may be firm-specific and of limited value to other firms. Causal
ambiguity may make it difficult for the employee to explain his or her specific contribution
to a given project. Thus, a rival firm might be less likely to pay a high wage
premium since it would be unsure of the employee’s unique contribution.
• Manager Bargaining Power. Managers’ power is based on how well they create
resource-based advantages. They are generally charged with creating value through
the process of organizing, coordinating, and leveraging employees as well as other
forms of capital such as plant, equipment, and financial capital (addressed further in
Chapter 4). Such activities provide managers with sources of information that may
not be readily available to others. Thus, although managers may not know as much
about the specific nature of customers and technologies, they are in a position to have
a more thorough, integrated understanding of the total operation.
Processes
Cycle time
Quality
Employee Skills
Productivity