Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 6 Internal Analysis - Coggle Diagram
Chapter 6 Internal Analysis
SWOT analysis
is a historically popular technique through which managers create a quick overview of a company’s strategic situation
Internal
Strengths
is a resource or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves
Weakness
is a limitation or deficiency in one or more of a firm’s resources or capabilities relative to its competitors that create a disadvantage in effectively meeting customer needs
Environmental
Opportunities
is a major favorable situation in a firm’s environment
Threats
is a major unfavorable situation in a firm’s environment
Value Chain
(VCA) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value. VCA takes a process point of view
Primary activities
The activities in a firm of those involved in the physical creation of the product, marketing and transfer to the buyer, and after-sales support.
Inbound logistics
Operations
Outband logistics
Marketing and sales
Service
Support activities
The activities in a firm that assist the firm as a whole by providing infrastructure or inputs that allow the primary activities to take place on an ongoing basis
General adm.
HRM
Research, technology, system development
Procurement
Three Circles Analysis
A technique wherein strategists examine customers’ needs, company offerings, and competitor’s offerings to more clearly articulate what their company’s competitive advantage is and how it differs from those of competitors
Circle A
How big and sustainable are our advantages?
Are they based on distinctive capabilities?
Circle B
Are we delivering effectively in the area of parity?
Circle C
How can we counter our competitors’ advantages?
Resource-Based View (RBV)
is a method of analyzing and identifying a firm’s strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles
The RBV’s underlying premise is that firms differ in fundamental ways because each firm possesses a unique “bundle” of resources
Each firm develops competencies from these resources, and these become the source of the firm’s competitive advantages
Three basic resources:
Intangible assets
are “resources” such as brand names, company reputation, organizational morale, technical knowledge, patents and trademarks, and accumulated experience
Organizational Capabilities
are not specific “inputs.” They are the skills that a company uses to transform inputs into outputs
Tangible assets
are often found on a firm’s balance sheet
What makes a resource valuable?
Guidelines: Is the resource or skill critical to fulfilling a customer’s need better than that of the firm’s competitors? Is the resource scarce? Is it in short supply or not easily substituted for or imitated?
Appropriability
: Who actually gets the profit created by a resource?
Durability
: How rapidly will the resource depreciate?