These tools help managers assess a firm's strategic position by answering questions about threats and opportunities, strengths and weaknesses, sources of competitive advantage, core competencies, and capabilities needed to achieve long-term objectives. The outputs inform innovation project selection by leveraging the firm's position and directing future development. Managers first analyze the external environment using models like Porter's five forces and stakeholders. They then examine the internal value chain and identify core competencies to distinguish the firm and underlie business units. Dynamic capabilities and strategic intent can help firms adapt competencies in changing environments and stretch goals.
Three Basic Managements Techniques for Analysis and PlanningOmer Iqbal
In Management Sciences, different techniques are used for decision making and data analysis
1. Porter's Five Analysis
2. TWOS Analysis
3. Strategic Planning
BUS 499, Week 3 The Internal Organization Resources, CapabilitieVannaSchrader3
BUS 499, Week 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
Slide #
Topic
Narration
1
Introduction
Welcome to the Business Administration Capstone.
In this lesson we will discuss The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
Next slide.
2
Objectives
Upon completion of this lesson, you will be able to:
Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness.
Next slide.
3
Topics
In order to achieve this objective, the following supporting topics will be covered:
Analyzing the internal organization;
Resources, capabilities, and core competencies;
Building core competencies;
Outsourcing; and
Competencies, strengths, weaknesses, and strategic decisions.
Next slide.
4
Internal Analysis
In the global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets remain sources of competitive advantage, but to a lesser degree. One important reason is that competitors can apply their resources to successfully use an international strategy as a means of overcoming the advantages created by these more traditional sources.
Increasingly, those who analyze their firm’s internal organization should use a global mind-set to do so. A global mind-set is the ability to study an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context. Because they are able to span artificial boundaries, those with a global mind-set recognize that their firms must possess resources and capabilities that allow understanding of and appropriate response to competitive situations that are influenced by country-specific factors and unique societal cultures.
Finally, analysis of the firm’s internal organization requires that evaluators examine the firm’s portfolio of resources and the bundles of heterogeneous resources and capabilities managers have created. This perspective suggests that individual firms possess at least some resources and capabilities that other companies do not.
Next slide.
5
Creating Value
By exploiting their core competencies or competitive advantages to at least meet if not exceed the demanding standards of global competition, firms create value for customers. Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay.
Firms with a competitive advantage offer value to customers that are superior to the value competitors provide. Firms create value by innovatively bundling and leveraging their resources and capabilities. Firms unable to creatively bundle and leverage their resources and capabilities in ways that create value for customers suffer performance declines. Sometimes, it seems that these declines may happen because firms fail to understand what customers value.
Ultimately, creating value for ...
Defining the Organization’s Strategic Directionrizkirahman10
To assess the firm’s current position in the marketplace, it is useful to begin with some standard tools of strategic analysis for analyzing the external and internal environment of the firm.
Three Basic Managements Techniques for Analysis and PlanningOmer Iqbal
In Management Sciences, different techniques are used for decision making and data analysis
1. Porter's Five Analysis
2. TWOS Analysis
3. Strategic Planning
BUS 499, Week 3 The Internal Organization Resources, CapabilitieVannaSchrader3
BUS 499, Week 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
Slide #
Topic
Narration
1
Introduction
Welcome to the Business Administration Capstone.
In this lesson we will discuss The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
Next slide.
2
Objectives
Upon completion of this lesson, you will be able to:
Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness.
Next slide.
3
Topics
In order to achieve this objective, the following supporting topics will be covered:
Analyzing the internal organization;
Resources, capabilities, and core competencies;
Building core competencies;
Outsourcing; and
Competencies, strengths, weaknesses, and strategic decisions.
Next slide.
4
Internal Analysis
In the global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets remain sources of competitive advantage, but to a lesser degree. One important reason is that competitors can apply their resources to successfully use an international strategy as a means of overcoming the advantages created by these more traditional sources.
Increasingly, those who analyze their firm’s internal organization should use a global mind-set to do so. A global mind-set is the ability to study an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context. Because they are able to span artificial boundaries, those with a global mind-set recognize that their firms must possess resources and capabilities that allow understanding of and appropriate response to competitive situations that are influenced by country-specific factors and unique societal cultures.
Finally, analysis of the firm’s internal organization requires that evaluators examine the firm’s portfolio of resources and the bundles of heterogeneous resources and capabilities managers have created. This perspective suggests that individual firms possess at least some resources and capabilities that other companies do not.
Next slide.
5
Creating Value
By exploiting their core competencies or competitive advantages to at least meet if not exceed the demanding standards of global competition, firms create value for customers. Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay.
Firms with a competitive advantage offer value to customers that are superior to the value competitors provide. Firms create value by innovatively bundling and leveraging their resources and capabilities. Firms unable to creatively bundle and leverage their resources and capabilities in ways that create value for customers suffer performance declines. Sometimes, it seems that these declines may happen because firms fail to understand what customers value.
Ultimately, creating value for ...
Defining the Organization’s Strategic Directionrizkirahman10
To assess the firm’s current position in the marketplace, it is useful to begin with some standard tools of strategic analysis for analyzing the external and internal environment of the firm.
Discuss the relationships between competitive avantage, istinctive c.pdfinfo706022
Discuss the relationships between competitive avantage, istinctive compentencies, resources,an
capabilities.
Solution
Resources
The activities and processes of the organization utilize certain assets. These assets are called
resources. These resources can be created within the organization. They form the internal
resources. Such generated resources are organization-specific. Otherwise they could be obtained
externally from the suppliers available in the resource markets. They form the external resources.
The externally obtained resources are organization-addressable. In addition resources can be
categorised as specific or non-specific. Those resources which can only be used for extremely
specialized intentions and are significant to the organization in adding value to goods and
services are called specific resources.
Resources
Resources of the firm can include all assets, capabilities, organizational processes, firm
attributes, information and knowledge. In short resources can be considered as inputs that
facilitate the organization to perform its activities.
All resources that an organization has may not have strategic relevance. Only certain resources
are capable of being an input to a value creating strategy which put the organization in a position
of competitive advantage. An organization’s resource should have four attributes to provide the
potential for competitive advantage. These form the VRIN characteristics.
The VRIN characteristics
The important features for a resource to be strategically important are as below
The VRIN characteristics mentioned above are individually necessary for the resources to be
valuable.
Non-specific resources are less specific and are less significant in adding value. Also resources
can be broadly classified as tangible and intangible. The physical assets that an organization
possesses are called tangible resources. The physical resources, human resources and final
resources come under this category.
The intellectual resources, technological resources and the organizational reputation together
form the intangible resources. The patents and copyrights of the organization are typical
examples of intellectual resources. The innovation capacity and innovation speed are examples
of technological resources. Reputation is basically good-will that the organization has acquired
among the customers. It is a critical resource of an organization.
Competencies
An organization should posses some characteristics in order to have the ability to compete with
other organizations in the market place. These characteristics form the competencies of the
organization. For any organization to survive in an industry competencies are must. At the same
time competencies cannot be useful to an organization when they stand alone. It is when they
combine together in the right combination that they help the organization to attain competitive
advantage. For instance consider an information technology organization. For this to compete in
t.
Class Plan 3 The early bird may get the worm, but the se.docxmonicafrancis71118
Class Plan 3 “The early bird may get the worm, but the second mouse gets the cheese” AnonymousQuestions for the next caseBrief discussion of the Apollo caseReview of 5-forces, including exercise Move on to Chapter 3 on Internal Analysis + extra information on VRIO approachExercises & video on Internal Analysis
Questions for the Nokia case
Have Nokia’s mission and vision (or their implementation) been partially responsible for their faltering performance?
Using the 5-forces model, what industry threats should Nokia have identified in their strategic pursuits?
What can Nokia do to continue to compete globally and domestically?
Porter’s Five Forces Model (Fig 2.2 p45 adapted)
Rivalry among established firms
Risk of entry by potential competitors
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Special role of complements
Product Lifecycle
Time
Demand
Embryonic
Growth
Shakeout
Mature
Declining
Macro-environmental Forces [Environmental Scanning]
Macroeconomics: growth rate of the economy, interest rates, currency exchange rates, inflation rates
Technological: “creative destruction”, shifting barriers to entry
Social: lifestyles, trends and attitudes
Demographics: composition of the population, factors such as income distribution, education, labour mobility, gender
Political & Legal : deregulation and free trade
Global: falling barriers to trade, new economic development
More on 5-forces model
Strategic Groups Def.: subsections of industry with the same basic strategy in-group
Implications: closest competitors are in the same groupgroups, to some extent, face different 5+-forcesexit & entry barriers exist between groups
Limitations of 5+-Forces & Strategic Groups models Static picture with limited attention to innovation. Industries evolve “unfrozen and reshaped” by technology : punctuated equilibrium hyper-competitive industries with no equilibriumdownplays individual company differencesstudies show that industry only accounts for 10%-20% of variance in firms’ profit rates
Internal AnalysisThe purpose of internal analysis is to pinpoint the strengths and weaknesses of the organization.
Strengths lead to superior performance. Weaknesses lead to inferior performance.
Internal Analysis includes an assessment of:Quantity and quality of a company’s resources and capabilitiesWays of building unique skills and company-specific or distinctive competencies
The Theory Behind Internal Analysis
The Resource-Based View
• developed to answer the question: Why do some
firms achieve better economic performance
than others?
• assumes that a firm’s resources and capabilities
are the primary drivers of competitive advantage
and economic performance
• used to help firms achieve competitive advantage
and superior economic performance
The Resource-Based View
Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» .
CHAPTER 4EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, ANDWilheminaRossi174
CHAPTER 4
EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS
Learn how to assess how well a company’s strategy is working.
Understand why a company’s resources and capabilities are central to its strategic approach and how to evaluate their potential for giving the company a competitive edge over rivals.
Discover how to assess the company’s strengths and weaknesses in light of market opportunities and external threats.
Grasp how a company’s value chain activities can affect the company’s cost structure and customer value proposition.
Understand how a comprehensive evaluation of a company’s competitive situation can assist managers in making critical decisions about their next strategic moves.
4–‹#›
EVALUATING A FIRM’S
INTERNAL SITUATION
How well is the firm’s present strategy working?
What are the firm’s competitively important resources and capabilities?
Is the firm able to take advantage of market opportunities and overcome external threats to its external well-being?
Are the firm’s prices and costs competitive with those of key rivals, and does it have an appealing customer value proposition?
Is the firm competitively stronger or weaker than key rivals?
What strategic issues and problems merit front-burner managerial attention?
4–3
QUESTION 1: HOW WELL IS THE FIRM’S PRESENT STRATEGY WORKING?
Best indicators of a well-conceived,
well-executed strategy:
The firm is achieving its stated financial and strategic objectives.
The firm is an above-average industry performer.
4–4
FIGURE 4.1
Identifying the Components of a Single-Business Company’s Strategy
4–5
SPECIFIC INDICATORS OF
STRATEGIC SUCCESS
Growth in firm’s sales and market share
Acquisition and retention of customers
Strengthening image and reputation with customers
Increasing profit margins, net profits and ROI
Growing financial strength and credit rating
Leadership in factors relevant to market\industry success
Continuing improvement in key measures of operating performance
4–6
Sluggish financial performance and second-rate market accomplishments almost always signal weak strategy, weak execution, or both.
4–7
STRATEGIC MANAGEMENT PRINCIPLE
Key Financial Ratios
TABLE 4.1
4–8
Key Financial Ratios
TABLE 4.1
4–9
Key Financial Ratios
TABLE 4.1
4–10
Key Financial Ratios
TABLE 4.1
4–11
QUESTION 2: WHAT ARE THE FIRM’S COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES?
Competitive Assets
Are the firm’s resources and capabilities.
Are the determinants of its competitiveness and ability to succeed in the marketplace.
Are what a firm’s strategy depends on to develop sustainable competitive advantage over its rivals.
4–12
A resource is a competitive asset that is owned or controlled by a firm
A capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm’s resources.
A firm’s resources and capabilities represent its competitive assets and are big determinants of ...
Oprah Winfrey: A Leader in Media, Philanthropy, and Empowerment | CIO Women M...CIOWomenMagazine
This person is none other than Oprah Winfrey, a highly influential figure whose impact extends beyond television. This article will delve into the remarkable life and lasting legacy of Oprah. Her story serves as a reminder of the importance of perseverance, compassion, and firm determination.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
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Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Artificial intelligence (AI) offers new opportunities to radically reinvent the way we do business. This study explores how CEOs and top decision makers around the world are responding to the transformative potential of AI.
2. These tools help the manager answer such questions as:
1. What threats and opportunities are most pressing in the firm’s environment?
2. What are the firm’s key strengths and weaknesses?
3. Does the firm have any sources of sustainable competitive advantage?
4.What are the firm’s core competencies, and what kind of value propositions do
those core competencies offer to customers? How do managers want those value
propositions to evolve?
5. What key resources and capabilities does the firm need to develop or acquire to
meet its long-term objectives?
The outputs of the analytical tools in this chapter are crucial inputs for the tools used in
Chapter Seven, Choosing Innovation Projects. A coherent technological innovation strategy both
leverages and enhances the firm’s existing competitive position, and it provides direction for the
future development of the firm.
3. ASSESSING THE FIRM’S CURRENT POSITION
The five forces are:
1. The degree of existing rivalry
2. Threat of potential entrants.
3. Bargaining power of suppliers
4. Bargaining power of buyers.
5. Threat of substitutes.
4. 1. Core Competencies
A company’s core competencies are typically considered to be those that
differentiate it strategically. A core competency is more than just a core
technology.
2. The Risk of Core Rigidities
Sometimes the very things that a firm excels at can enslave it, making the firm
rigid and overly committed to inappropriate skills and resources.
3. Dynamic Capabilities
In fast-changing markets, it can be extremely useful for a firm to develop a core
competency in responding to change.
5. Summary of Chapter
1. The first step in establishing a coherent strategy for the firm is assessing
the external environment. Two commonly used models of external analysis
are Porter’s five-force model and stakeholder analysis.
2. Porter’s five-force model entails assessing the degree of existing rivalry,
threat of potential entrants, bargaining power of suppliers, bargaining power
of customers, and threat posed by substitutes. Recently Porter added a sixth
force, the role of complements.
3. Stakeholder analysis involves identifying any entity with an interest in the
firm, what it wants from the company, and what claims it can make on the
company.
4. To analyze the internal environment, firms often begin by identifying
strengths and weaknesses in each activity of the value chain. The firm can
then identify which strengths have the potential to be a source of sustainable
competitive advantage.
5. Next the firm identifies its core competencies. Core competencies are
integrated combinations of abilities that distinguish the firm in the
marketplace. Several core competencies may underlie each business unit, and
several business units may draw upon the same core competency.
6. Summary of Chapter
6. Sometimes core competencies can become core rigidities that limit
the firm’s ability to respond to a changing environment.
7. Dynamic capabilities are competencies that enable a firm to quickly
reconfigure the firm’s organizational structure or routines in response to
change in the firm’s environment or opportunities.
8. A firm’s strategic intent is the articulation of an ambitious long-term
(10 to 20 years out) goal or set of goals. The firm’s strategic intent
should build upon and stretch its existing core competencies.
9. Once the firm articulates its strategic intent, managers should identify
the resources and capabilities that the firm must develop or acquire to
achieve its strategic intent.
10. The balanced scorecard is a measurement system that encourages the
firm to consider its goals from multiple perspectives (financial,
customer, business process,
and innovation and learning), and establish measures that correspond to
each of
those perspectives.