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Organizational Analysis and Competitive Advantage, Resources are an…
Organizational
Analysis and
Competitive
Advantage
A Resource-Based Approach to Organizational Analysis
Core and Distinctive Competencies
unique resources and/or core competencies are superior to those of the competition
Replicability
Transferability
Transparency
Using Resources/Capabilities to Gain Competitive
Advantage
Asset endpwment
Acquired from someone else
Shared with another business unit
Carefully built and accumulated over time within the company
VRIO Analysis
Imitability
Organization
Rareness
Valuable
Business Model
Elements
What it provides
How it makes money
Who it serves
How it differentiates and sustains competitive advantage
How it provides its product/service.
Posibble Business Model
Multicomponent system/installed base model:
Advertising model
Switchboard model
Time model
Profit pyramid model
Efficiency model
Blockbuster model
Customer solutions model
Profit multiplier model
Entrepreneurial model:
De facto industry standard model:
Value Chain Analysis
Industry Value Chain
split into two segments, upstream and downstream
Corporate Value Chain
step
Examine the “linkages” within each product line’s value chain
Examine the potential synergies among the value chains of different product linesor business units
Examine each product line’s value chain in terms of the various activities involved in producing that product or service
Scanning functional resources and capabilities
Basic Organizational Structures
Functional structure
Divisional structure
Simple Structure
Strategic business units (SBUs)
Culture
Definition
collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another
important functions in an organization
Conveys a sense of identity for employees
Helps generate employee commitment to something greater than themselves
Adds to the stability of the organization as a social system
Serves as a frame of reference for employees to use to make sense of organizational
activities and to use as a guide for appropriate behavior.
Strategic Marketing Issues
Marketing Mix
refers to the particular combination of key variables under a corporation’s control that can be used to affect demand and to gain competitive advantage
Product Life Cycle
used by marketing managers to discuss the marketing mix of a particular product or group of products in terms of where it might exist in the life cycle
Market Position and Segmentation
Market Position
selection of specific areas for marketing concentration and can be expressed in terms of market, product, and geographic locations
Segmentation
Brand and Corporate Reputation
Brand
name given to a company’s product which embodies all of the characteristics of that item in the mind of the consumer
Corporate Reputation
widely held perception of a company by the general
public
Strategic Financial Issues
Financial Leverage
helpful in describing how debt is used to increase the earnings available to common
shareholders
Capital Budgeting
the analyzing and ranking of possible investments in fixed assets such as land, buildings, and equipment in terms of the additional outlays and additional receipts that will result from each investment
Strategic Research and Development (R&D) Issues
R&D Intensity, Technological Competence, and Technology Transfer
R&D Mix
Impact of Technological Discontinuity on Strategy
Strategic Operations Issues
Experience Curve
Flexible Manufacturing for Mass Customization
Strategic Human Resource MANAGEMENT (HRM) Issues
Increasing Use of Teams
Union Relations and Temporary/Part-Time Workers
Quality of Work Life and Human Diversity
Strategic Information Systems/Technology Issues
Impact on Performance
Supply Chain Management
The Strategic Audit: A Checklist for Organizational Analysis
Step
In Column 1 (Internal Factors), list the 8 to 10 most important strengths and weaknessesfacing the company
In Column 2 (Weight), assign a weight to each factor from 1.0 (Most Important) to 0.0 (Not Important)
In Column 3 (Rating), assign a rating to each factor from 5.0 (Outstanding) to 1.0 (Poor)
In Column 4 (Weighted Score), multiply the weight in Column 2 for each factor times its rating in Column 3 to obtain that factor’s weighted score.
In Column 5 (Comments), note why a particular factor was selected and/or how its weight and rating were estimated.
Finally, add the weighted scores for all the internal factors in Column 4 to determine
the total weighted score for that particular company.
Resources are an organization’s assets and are thus the basic building blocks of the organization.
Capabilities refer to a corporation’s ability to exploit its resources
Azyura Humaira
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