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.
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.
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.
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.
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.
This document discusses internal analysis and identifying a company's strengths and weaknesses. It defines distinctive competencies as firm-specific strengths that allow a company to gain competitive advantages through differentiation or lower costs. Resources and capabilities are the basis for distinctive competencies. Competitive advantages lead to greater value creation, pricing power, and profitability. Key aspects that drive competitive advantages are efficiency, quality, innovation, and responsiveness to customers.
This document discusses strategic capabilities in organizations. It defines strategic capabilities as the resources and competencies needed for an organization to survive and prosper. It distinguishes between threshold resources/competencies required to meet minimum customer requirements and unique/core competencies that provide competitive advantage. Cost efficiency, experience curves, and dynamic capabilities that allow renewal are discussed as important strategic capabilities. Benchmarking and analyzing value chains/networks can help diagnose an organization's strategic capabilities.
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.
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.
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.
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.
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.
This document discusses internal analysis and identifying a company's strengths and weaknesses. It defines distinctive competencies as firm-specific strengths that allow a company to gain competitive advantages through differentiation or lower costs. Resources and capabilities are the basis for distinctive competencies. Competitive advantages lead to greater value creation, pricing power, and profitability. Key aspects that drive competitive advantages are efficiency, quality, innovation, and responsiveness to customers.
This document discusses strategic capabilities in organizations. It defines strategic capabilities as the resources and competencies needed for an organization to survive and prosper. It distinguishes between threshold resources/competencies required to meet minimum customer requirements and unique/core competencies that provide competitive advantage. Cost efficiency, experience curves, and dynamic capabilities that allow renewal are discussed as important strategic capabilities. Benchmarking and analyzing value chains/networks can help diagnose an organization's strategic capabilities.
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 how to conduct a functional analysis of an organization by identifying strengths and weaknesses across key functional areas like marketing, finance, operations, human resources, and technology. It provides examples of strengths in these areas for different companies. The document also discusses how to analyze an organization's value chain and resources using frameworks like the VRIO model to assess strategic importance.
The document discusses a firm's internal environment, including its resources, capabilities, and core competencies. It defines these terms and explains how they contribute to competitive advantage. Resources include tangible and intangible assets. Capabilities refer to how resources are deployed. Core competencies are rare, valuable capabilities that are costly for competitors to imitate. Firms use value chain analysis to evaluate resources and capabilities. Outsourcing non-core activities allows firms to focus on core competencies. Core competencies can become rigid over time if not managed properly.
This chapter discusses how organizational structure and controls impact strategic implementation and firm performance. It describes different types of organizational structures including functional, multi-divisional, and simple structures and how they relate to business strategies. The chapter also covers strategic and financial controls, and organizational structures used for international strategies and strategic networks.
The document discusses analyzing an organization's internal environment to assess its ability to develop strategy. It covers:
1) Reviewing historical and current financial performance as well as strategic assets like resources and competencies.
2) Breaking down and evaluating the internal value chain to understand capabilities.
3) Using ratio analysis of financial statements and non-financial metrics to evaluate performance, efficiency, capital structure, and how to increase shareholder value.
The document discusses Michael Porter's analysis of competitive advantage through his concept of the value chain. It provides an overview of Porter's view that competitive advantage can be achieved through either cost leadership or differentiation. It then explains Porter's value chain framework which identifies primary and support activities that can contribute to cost leadership or differentiation. The document outlines Porter's perspectives on analyzing costs, identifying cost drivers, and reconfiguring activities to achieve a competitive advantage through lower costs. It also discusses differentiating products and services in a way that creates value for buyers. The goal is to shift competition from red oceans of head-to-head competition to blue oceans of creating uncontested market space.
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.
Internal scanning is important for identifying a firm's internal strategic factors and resources. A resource provides competitive advantage if it is valuable, rare, difficult to imitate, and the organization is well-structured to exploit it. A strategic audit examines a firm's functional resources, organizational structure, culture, and assesses its strengths and weaknesses using frameworks like VRIO and IFAS.
The document discusses corporate-level strategy and diversification. It provides questions and answers about the differences between business-level and corporate-level strategy. It also discusses the various types of diversification like related, unrelated, and reasons companies pursue diversification strategies like economies of scope, market power, efficient allocation of resources. Diversified companies are often better managed with a multidivisional structure to allow for accurate performance monitoring and resource allocation between divisions.
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.
The document discusses assessing a firm's internal environment, including conducting SWOT and value chain analyses to evaluate strengths, weaknesses, and competitive advantages. It describes the primary and support activities in a value chain, such as inbound logistics, operations, outbound logistics, marketing and sales, service, technology development, and general administration. The document also covers assessing a firm's tangible, intangible, and organizational resources based on whether they are valuable, rare, difficult to imitate or substitute. Financial ratio analysis and stakeholder interests are mentioned as additional factors for internal assessment.
The document discusses different types of strategies used in strategic management. It describes corporate strategies, business strategies, and functional strategies. It also outlines various growth, restructuring, global, and e-business strategies. The document then discusses the process of strategic management, including strategy formulation using tools like SWOT analysis, Porter's five forces model, and portfolio analysis. It also covers strategy implementation and the role of strategic leadership.
The document discusses internal appraisal, which involves assessing a firm's strengths, weaknesses, status, competitive advantages, and core competencies. It provides examples of analyzing various companies and identifies their strengths and weaknesses in areas like marketing, finance, manufacturing, R&D, and human resources. Various techniques for internal appraisal are also outlined, along with how companies can identify and build competitive advantages and core competencies through approaches like benchmarking, innovation, integration, strategic alliances and more. The concepts of competitive advantage and core competence are defined and distinguished.
The document discusses strategic capability and managing it. It defines strategic capability as the adequacy and suitability of an organization's resources and competencies. It notes that a unique resource that is better than competitors' and difficult to imitate can provide sustained competitive advantage. The document also discusses value chain, product portfolio management, product life cycles, benchmarking, and performing SWOT analysis to appraise organizational strengths, weaknesses, opportunities, and threats.
The document discusses business strategy concepts including business level strategy, corporate strategy, core competencies, distinctive competencies, and competitive advantage. It provides definitions and examples of each concept. The key points are:
1) Business level strategy outlines how a company delivers value to customers while gaining a competitive advantage. Corporate strategy encompasses actions to achieve objectives and advantages.
2) Core competencies are unique skills that provide benefits to customers, can be applied across markets, and are hard to replicate. Distinctive competencies provide the basis for competitive advantage through strengths like technology or customer satisfaction.
3) Developing core and distinctive competencies through strategies like differentiation, pricing, segmentation, and product range allows companies to create
Competitive Advantage And Core Competenciespriyanka
The document discusses competitive advantage, core competencies, and various corporate strategies. It provides definitions and concepts related to competitive advantage, core competencies, and strategies such as amalgamation, merger, demerger, slump sale, takeover, disinvestment, joint venture, and franchising. Core competencies are unique skills or expertise that provide competitive advantages and allow companies to access new markets. Effective strategies allow companies to optimize their business portfolio.
The document discusses a firm's internal environment, focusing on resources, capabilities, and core competencies. It defines these terms and explains how firms can identify their core competencies using criteria like being valuable, rare, costly to imitate, and efficiently exploited. Firms then use tools like value chain analysis to evaluate their internal strengths and weaknesses and determine potential areas for outsourcing or developing new capabilities. Maintaining core competencies while avoiding that they become rigid is important for sustained competitive advantage.
The document discusses key concepts related to business strategy including core competencies, capabilities, strategic planning, and defining a company's mission and vision.
The main points are:
1) A firm's success depends on having distinctive capabilities and core competencies that are difficult for competitors to imitate. These provide the strategic platform for the business.
2) It is important to define what business a company is truly in based on customer needs, rather than just products. The mission statement should communicate the company's core values, purpose, and goals.
3) Developing the right marketing strategy is key to exploiting a company's strengths and selecting the right target markets that fit its capabilities.
The document discusses methods for evaluating a company's internal resources and capabilities. It describes conducting an internal environmental scan to assess strengths and weaknesses. Three main methods are outlined: resource/capabilities analysis, value chain analysis, and McKinsey 7S framework. The value chain analysis examines primary and support activities to analyze costs. The 7S framework analyzes seven internal elements: strategy, structure, systems, shared values, style, staff, and skills. Conducting an internal analysis can help a company leverage its core competencies and develop sustainable competitive advantages.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
evaluating a company's resources and competitive position.pptPacifiqueBizima
This document discusses evaluating a company's competitive position through analyzing its internal resources and capabilities as well as its external competitive environment. It introduces the concept of using value chain analysis and benchmarking to evaluate whether a company's prices and costs are competitive compared to its rivals. The document provides examples of value chain activities for different industries and uses tables and figures to illustrate key frameworks for conducting internal and external analysis, including analyzing a company's strengths, weaknesses, opportunities, and threats.
This document discusses evaluating a company's resources, competitive position, and strategy. It addresses five key questions:
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? The document provides frameworks for assessing these questions, including analyzing a strategy's qualitative and quantitative performance, identifying internal strengths and weaknesses, and external opportunities and threats. It distinguishes between competencies, core competencies, and distinctive competencies as valuable competitive capabilities.
This document provides an overview of strategic analysis. It begins by outlining the components of strategic management and analysis. It then discusses approaches to assessing strategy, including qualitative and quantitative assessments. Key indicators for strategic success are also presented. The document also covers analyzing a company's resources and competitive position using SWOT analysis. It defines strengths, weaknesses, opportunities, and threats. Additionally, it discusses core competencies, distinctive competencies, and how to determine the competitive value of resources. Finally, the document outlines organizational capability profiles and strategic advantage.
The document discusses how to conduct a functional analysis of an organization by identifying strengths and weaknesses across key functional areas like marketing, finance, operations, human resources, and technology. It provides examples of strengths in these areas for different companies. The document also discusses how to analyze an organization's value chain and resources using frameworks like the VRIO model to assess strategic importance.
The document discusses a firm's internal environment, including its resources, capabilities, and core competencies. It defines these terms and explains how they contribute to competitive advantage. Resources include tangible and intangible assets. Capabilities refer to how resources are deployed. Core competencies are rare, valuable capabilities that are costly for competitors to imitate. Firms use value chain analysis to evaluate resources and capabilities. Outsourcing non-core activities allows firms to focus on core competencies. Core competencies can become rigid over time if not managed properly.
This chapter discusses how organizational structure and controls impact strategic implementation and firm performance. It describes different types of organizational structures including functional, multi-divisional, and simple structures and how they relate to business strategies. The chapter also covers strategic and financial controls, and organizational structures used for international strategies and strategic networks.
The document discusses analyzing an organization's internal environment to assess its ability to develop strategy. It covers:
1) Reviewing historical and current financial performance as well as strategic assets like resources and competencies.
2) Breaking down and evaluating the internal value chain to understand capabilities.
3) Using ratio analysis of financial statements and non-financial metrics to evaluate performance, efficiency, capital structure, and how to increase shareholder value.
The document discusses Michael Porter's analysis of competitive advantage through his concept of the value chain. It provides an overview of Porter's view that competitive advantage can be achieved through either cost leadership or differentiation. It then explains Porter's value chain framework which identifies primary and support activities that can contribute to cost leadership or differentiation. The document outlines Porter's perspectives on analyzing costs, identifying cost drivers, and reconfiguring activities to achieve a competitive advantage through lower costs. It also discusses differentiating products and services in a way that creates value for buyers. The goal is to shift competition from red oceans of head-to-head competition to blue oceans of creating uncontested market space.
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.
Internal scanning is important for identifying a firm's internal strategic factors and resources. A resource provides competitive advantage if it is valuable, rare, difficult to imitate, and the organization is well-structured to exploit it. A strategic audit examines a firm's functional resources, organizational structure, culture, and assesses its strengths and weaknesses using frameworks like VRIO and IFAS.
The document discusses corporate-level strategy and diversification. It provides questions and answers about the differences between business-level and corporate-level strategy. It also discusses the various types of diversification like related, unrelated, and reasons companies pursue diversification strategies like economies of scope, market power, efficient allocation of resources. Diversified companies are often better managed with a multidivisional structure to allow for accurate performance monitoring and resource allocation between divisions.
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.
The document discusses assessing a firm's internal environment, including conducting SWOT and value chain analyses to evaluate strengths, weaknesses, and competitive advantages. It describes the primary and support activities in a value chain, such as inbound logistics, operations, outbound logistics, marketing and sales, service, technology development, and general administration. The document also covers assessing a firm's tangible, intangible, and organizational resources based on whether they are valuable, rare, difficult to imitate or substitute. Financial ratio analysis and stakeholder interests are mentioned as additional factors for internal assessment.
The document discusses different types of strategies used in strategic management. It describes corporate strategies, business strategies, and functional strategies. It also outlines various growth, restructuring, global, and e-business strategies. The document then discusses the process of strategic management, including strategy formulation using tools like SWOT analysis, Porter's five forces model, and portfolio analysis. It also covers strategy implementation and the role of strategic leadership.
The document discusses internal appraisal, which involves assessing a firm's strengths, weaknesses, status, competitive advantages, and core competencies. It provides examples of analyzing various companies and identifies their strengths and weaknesses in areas like marketing, finance, manufacturing, R&D, and human resources. Various techniques for internal appraisal are also outlined, along with how companies can identify and build competitive advantages and core competencies through approaches like benchmarking, innovation, integration, strategic alliances and more. The concepts of competitive advantage and core competence are defined and distinguished.
The document discusses strategic capability and managing it. It defines strategic capability as the adequacy and suitability of an organization's resources and competencies. It notes that a unique resource that is better than competitors' and difficult to imitate can provide sustained competitive advantage. The document also discusses value chain, product portfolio management, product life cycles, benchmarking, and performing SWOT analysis to appraise organizational strengths, weaknesses, opportunities, and threats.
The document discusses business strategy concepts including business level strategy, corporate strategy, core competencies, distinctive competencies, and competitive advantage. It provides definitions and examples of each concept. The key points are:
1) Business level strategy outlines how a company delivers value to customers while gaining a competitive advantage. Corporate strategy encompasses actions to achieve objectives and advantages.
2) Core competencies are unique skills that provide benefits to customers, can be applied across markets, and are hard to replicate. Distinctive competencies provide the basis for competitive advantage through strengths like technology or customer satisfaction.
3) Developing core and distinctive competencies through strategies like differentiation, pricing, segmentation, and product range allows companies to create
Competitive Advantage And Core Competenciespriyanka
The document discusses competitive advantage, core competencies, and various corporate strategies. It provides definitions and concepts related to competitive advantage, core competencies, and strategies such as amalgamation, merger, demerger, slump sale, takeover, disinvestment, joint venture, and franchising. Core competencies are unique skills or expertise that provide competitive advantages and allow companies to access new markets. Effective strategies allow companies to optimize their business portfolio.
The document discusses a firm's internal environment, focusing on resources, capabilities, and core competencies. It defines these terms and explains how firms can identify their core competencies using criteria like being valuable, rare, costly to imitate, and efficiently exploited. Firms then use tools like value chain analysis to evaluate their internal strengths and weaknesses and determine potential areas for outsourcing or developing new capabilities. Maintaining core competencies while avoiding that they become rigid is important for sustained competitive advantage.
The document discusses key concepts related to business strategy including core competencies, capabilities, strategic planning, and defining a company's mission and vision.
The main points are:
1) A firm's success depends on having distinctive capabilities and core competencies that are difficult for competitors to imitate. These provide the strategic platform for the business.
2) It is important to define what business a company is truly in based on customer needs, rather than just products. The mission statement should communicate the company's core values, purpose, and goals.
3) Developing the right marketing strategy is key to exploiting a company's strengths and selecting the right target markets that fit its capabilities.
The document discusses methods for evaluating a company's internal resources and capabilities. It describes conducting an internal environmental scan to assess strengths and weaknesses. Three main methods are outlined: resource/capabilities analysis, value chain analysis, and McKinsey 7S framework. The value chain analysis examines primary and support activities to analyze costs. The 7S framework analyzes seven internal elements: strategy, structure, systems, shared values, style, staff, and skills. Conducting an internal analysis can help a company leverage its core competencies and develop sustainable competitive advantages.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
evaluating a company's resources and competitive position.pptPacifiqueBizima
This document discusses evaluating a company's competitive position through analyzing its internal resources and capabilities as well as its external competitive environment. It introduces the concept of using value chain analysis and benchmarking to evaluate whether a company's prices and costs are competitive compared to its rivals. The document provides examples of value chain activities for different industries and uses tables and figures to illustrate key frameworks for conducting internal and external analysis, including analyzing a company's strengths, weaknesses, opportunities, and threats.
This document discusses evaluating a company's resources, competitive position, and strategy. It addresses five key questions:
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? The document provides frameworks for assessing these questions, including analyzing a strategy's qualitative and quantitative performance, identifying internal strengths and weaknesses, and external opportunities and threats. It distinguishes between competencies, core competencies, and distinctive competencies as valuable competitive capabilities.
This document provides an overview of strategic analysis. It begins by outlining the components of strategic management and analysis. It then discusses approaches to assessing strategy, including qualitative and quantitative assessments. Key indicators for strategic success are also presented. The document also covers analyzing a company's resources and competitive position using SWOT analysis. It defines strengths, weaknesses, opportunities, and threats. Additionally, it discusses core competencies, distinctive competencies, and how to determine the competitive value of resources. Finally, the document outlines organizational capability profiles and strategic advantage.
Chapter 04 Evaluating a Company’s Internal Environment.pptxMehediHasan944698
This document provides an overview of internal analysis for assessing a company's strategy, competitive advantages, and profitability. It discusses identifying a company's distinctive competencies, resources, capabilities, and weaknesses through analyzing their value chain activities. Conducting a SWOT analysis and applying the VRIN test can help determine what gives a company a sustained competitive advantage and superior profits over rivals. The goal of internal analysis is to understand how a company can create more value for customers at a lower cost to achieve competitive advantage.
This document discusses evaluating a company's strategy, resources, capabilities and competitiveness. It addresses the following questions:
1. How well is the current strategy working based on financial and market performance?
2. What are the company's important resources and capabilities that provide competitive advantages?
3. Can the company identify opportunities and threats using a SWOT analysis to strengthen its position?
4. Is the company's cost structure and customer value competitive compared to rivals?
5. Is the company stronger or weaker than its key competitors based on important success factors?
6. What strategic issues require management attention, such as responding to challenges, adapting to changes, or expanding into new areas?
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 ...
This document discusses tools and methods for assessing an organization's internal environment, including its strengths and weaknesses. It describes analyzing distinctive competencies, conducting an internal audit of key functional areas like management, marketing, finance, production, and information systems. The internal factor evaluation matrix and resource-based view are introduced as frameworks for evaluating internal resources. Benchmarking and value chain analysis are presented as methods to evaluate organizational activities against competitors.
Internal analysis, the six fundamental questions answered in analyzing the internal environmental of business.How well the company’s present strategy working,Discuss the difference between corporate level strategy and business level strategy,the four building blocks and their impact on overall company strategy,Define horizontal and vertical integration with example,explain the five major competitive strategy?
CHAPTER 4 Evaluating a Company’s Resources, Capabilities, and Co.docxketurahhazelhurst
The document discusses techniques for evaluating a company's internal situation, including its resources, capabilities, and activities along its value chain. It focuses on how to assess a company's strengths and weaknesses using SWOT analysis, which identifies internal strengths and weaknesses as well as external opportunities and threats. Table 4.1 provides key financial ratios to evaluate a company's performance in areas like profitability, liquidity, leverage, and cash flow. Analyzing these internal factors combined with external industry conditions can help determine if a company's current strategy is effectively positioning it to compete.
This document discusses a chapter about a firm's internal organization, resources, capabilities, and core competencies. It provides definitions for key terms related to these topics. Some of the main points covered include:
- Firms rely on unique bundles of resources and capabilities to create competitive advantages.
- Core competencies are the basis for a firm's competitive advantages in the marketplace.
- Capabilities allow a firm to deploy resources to achieve goals. Core competencies are sources of advantage over rivals.
- A firm's value chain activities and support functions should create value for customers in ways that are superior or unique compared to competitors.
The document provides an overview of analyzing a company's internal environment and strategy. It discusses the key questions to ask, including how well the current strategy is working, the company's strengths/weaknesses/opportunities/threats (SWOT analysis), whether prices and costs are competitive, how the company compares to rivals, and what strategic issues need attention. It also covers tools like value chain analysis, benchmarking, and the BCG matrix to evaluate different aspects of the company's strategy and competitive positioning. The overall aim is to conduct a thorough internal analysis of the business to inform strategic decision making.
This chapter discusses how to perform an internal strategic management audit and analysis of a firm. It covers evaluating a firm's internal resources, capabilities, and functional areas. These include management, marketing, finance, production, research and development, and information systems. Tools like financial ratio analysis, value chain analysis, benchmarking and an internal factor evaluation matrix are presented to assess a firm's internal strengths and weaknesses. The objectives are to understand a firm's internal environment and identify areas for improvement to achieve competitive advantage.
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.
The document discusses the internal organization of a firm, including its resources, capabilities, and core competencies. It defines these terms and explains how they contribute to competitive advantage. Specifically, it provides criteria for determining a firm's core competencies and discusses how core competencies can provide sustainable competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. However, the document also notes that core competencies carry risks of becoming outdated or imitated by competitors over time.
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 discusses internal analysis for firms, focusing on resources, capabilities, and activities. It defines resources, capabilities, core competencies and firm activities. Tangible and intangible resources are differentiated. The resource-based view and its assumptions of resource heterogeneity and immobility are described. The VRIO framework and value chain analysis are introduced as tools to assess competitive implications. Dynamic capabilities allow firms to modify their resource base over time in response to changes. Strategic coherence and maintaining a fit between various strategic elements is important for competitive advantage.
This document discusses tools for defining an organization's strategic direction. It outlines questions managers can use the tools to answer, such as identifying threats and opportunities, strengths and weaknesses, and sources of competitive advantage. The tools also help identify core competencies, value propositions, and necessary future resources and capabilities. Performing external and internal analysis is crucial for establishing a coherent innovation strategy that leverages the firm's position and provides future direction. This involves assessing factors like industry competition and identifying core competencies, dynamic capabilities, and strategic intent to adapt to changes.
2. Company Situation Analysis:
The Key Questions
1. How well is the company’s
present strategy working?
2. What are the company’s resource
strengths and weaknesses and its
external opportunities and threats?
3. Are the company’s prices and
costs competitive?
4. Is the company competitively stronger
or weaker than key rivals?
5. What strategic issues merit
front-burner managerial attention?
4-2
4. Question 1: How Well Is the Company’s
Present Strategy Working?
Key Considerations
Must begin by understanding what the strategy is
Identify competitive approach
Low-cost leadership
Differentiation
Focus on a particular market niche
Determine competitive scope
Broad or narrow geographic market coverage?
In how many stages of industry’s production/distribution
chain does the company operate?
Examine recent strategic moves
Identify functional strategies
4-4
5. Approaches to Assess How Well
the Present Strategy Is Working
Qualitative assessment – Quantitative assessment –
Is the strategy well- What are the results?
conceived?
Is company achieving its
Covers all the bases? financial and strategic
Internally consistent? objectives?
Makes sense? Is company an above-
Timely and in step with average industry
marketplace? performer?
4-5
6. Key Indicators of How Well
the Strategy Is Working
Trend in sales and market share
Acquiring and/or retaining customers
Trend in profit margins
Trend in net profits, ROI, and EVA
Overall financial strength and credit ranking
Efforts at continuous improvement activities
Trend in stock price and stockholder value
Image and reputation with customers
Leadership role(s) – Technology, quality,
innovation, e-commerce, etc.
4-6
9. Question 2: What Are the Company’s Strengths,
Weaknesses, Opportunities and Threats ?
S W O T represents the first letter in
S trengths S W
W eaknesses
O pportunities
T hreats O T
For
a company’s strategy to be well-conceived, it
must be
Matched to its resource strengths and weaknesses
Aimed at capturing its best market opportunities and
erecting defenses against external threats to its well-
being
4-9
10. Identifying Resource Strengths
and Competitive Capabilities
A strength is something a firm does well or an attribute
that enhances its competitiveness
Valuable skills, competencies, or capabilities
Valuable physical assets
Valuable human assets
Valuable organizational assets
Valuable intangible assets
Important competitive capabilities
An attribute placing a company in a position of market
advantage
Alliances or cooperative ventures with partners
Resource strengths and competitive
capabilities are competitive assets!
4-10
11. Competencies vs. Core Competencies vs.
Distinctive Competencies
A competence is the product of organizational
learning and experience and represents real
proficiency in performing an internal activity
A core competence is a well-performed
internal activity central (not peripheral or incidental)
to a company’s competitiveness
and profitability
A distinctive competence is a competitively
valuable activity a company performs better
than its rivals
4-11
12. Identifying Resource Weaknesses
and Competitive Deficiencies
A weakness is something a firm lacks, does poorly,
or a condition placing it at a disadvantage
Resource weaknesses relate to
Inferior or unproven skills,
expertise, or intellectual capital
Lack of important physical,
organizational, or intangible assets
Missing capabilities in key areas
Resource weaknesses and deficiencies
are competitive liabilities!
4-12
15. Identifying a Company’s
Market Opportunities
Opportunitiesmost relevant to a
company are those offering
Good match with its financial and
organizational resource capabilities
Best prospects for profitable
long-term growth
Potential for competitive advantage
4-15
16. Identifying External Threats
Emergence of cheaper/better technologies
Introduction of better products by rivals
Entry of lower-cost foreign competitors
Onerous regulations
Rise in interest rates
Potential of a hostile takeover
Unfavorable demographic shifts
Adverse shifts in foreign exchange rates
Political upheaval in a country
4-16
18. Question 3: Are the Company’s
Prices and Costs Competitive?
Assessing whether a firm’s costs are competitive
with those of rivals is a crucial part of company
situation analysis
Key analytical tools
Value chain analysis
Benchmarking
4-18
19. Concept: Company Value Chain
A company’s business consists of all activities
undertaken in designing, producing, marketing, delivering,
and supporting its product or service
All these activities that a company performs internally
combine to form a value chain—so-called because the
underlying intent of a company’s activities is to do things
that ultimately create value for buyers
The value chain contains two types of activities
Primary activities (where most of
the value for customers is created)
Support activities that facilitate
performance of the primary activities
4-19
20. Fig. 4.3: A Representative Company Value Chain
4-20
22. Developing Data to Measure a
Company’s Cost Competitiveness
Afteridentifying key value chain activities, the next
step involves determining costs of performing specific
value chain activities using activity-based costing
Appropriate degree of disaggregation depends on
Economics of activities
Value of comparing narrowly defined
versus broadly defined activities
Guideline – Develop separate cost
estimates for activities
Having different economics
Representing a significant or growing proportion of costs
4-22
23. Activity-Based Costing: A Key
Tool in Analyzing Costs
Determining whether a company’s costs are in line
with those of rivals requires
Measuring how a company’s costs compare with those
of rivals activity-by-activity
Requires having accounting data to measure cost
of each value chain activity
Activity-based costing entails
Defining expense categories according
to specific activities performed and
Assigning costs to the activity
responsible for creating the cost
4-23
25. Benchmarking Costs of
Key Value Chain Activities
Focuses on cross-company comparisons of how
certain activities are performed and costs
associated with these activities
Purchase of materials
Payment of suppliers
Management of inventories
Getting new products to market
Performance of quality control
Filling and shipping of customer orders
Training of employees
Processing of payrolls
4-25
26. Fig. 4.5: Translating Company Performance of
Value Chain Activities into Competitive Advantage
4-26
27. Question 4: Is the Company Stronger
or Weaker than Key Rivals?
Overallcompetitive position involves
answering two questions
How does a company rank relative
to competitors on each important
factor that determines market success?
Does a company have a net
competitive advantage or disadvantage
vis-à-vis major competitors?
4-27
28. Assessing a Company’s
Competitive Strength vs. Key Rivals
1. List industry key success factors and other relevant
measures of competitive strength
2. Rate firm and key rivals on each factor using rating
scale of 1 to 10 (1 = very weak; 5 = average; 10 = very
strong)
3. Decide whether to use a weighted or unweighted
rating system (a weighted system is superior
because chosen strength measures are unlikely to
be equally important)
4. Sum individual ratings to get an overall measure of
competitive strength for each rival
5. Based on overall strength ratings, determine overall
competitive position of firm
4-28
31. Question 5: What Strategic Issues
Merit Managerial Attention?
Based on results of both industry and competitive
analysis and an evaluation of a company’s
competitiveness, what items should be
on a company’s “worry list”?
Requires thinking strategically about
Pluses and minuses in the industry
and competitive situation
Company’s resource strengths and weaknesses and
attractiveness of its competitive position
A “good” strategy must address “what to do”
about each and every strategic issue!
4-31