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Week 11 Internal analysis: from capabilities to strategy - Coggle Diagram
Week 11 Internal analysis: from capabilities to strategy
1 Developing capabilities
the concept's importance
1.1 Capability lifecycles: initial capability development
uses
organisation capabilities acquiring meaning
stages
Figure 11.2 Stages of the initial capability development cycle
2.'Maturity'
1.‘Founding and development’
1.2 Capability lifecyles: lifecycle branches
development factors
‘selection events’
‘internal’
‘external’
impact
‘six Rs’
lifecycle branches
retrenchment
retirement
replication
redeployment
recombination
renewal
Figure 11.3 Branches of the capability lifecycle
1.3 Learning curves
the concept
Figure 11.4 represents this effect graphically.
1.4 Efficiency gains from learning curves
efficiency gains:
incremental improvements in product/service design and in the production process and equipment used.
People develop experience in performing the routines necessary to create products or deliver services.
the implications for managers include:
Market share
Turnover
Entry time
Transfer of knowledge within an organisation
Decreasing returns from experience
Difference from economies of scale
2 Dynamic capabilities
the concept
view/argument
definition
important features
Dynamic capabilities are thought to be found most commonly in highly dynamic environments and in moderately dynamic environments.
An important dynamic capability is an organisation’s ability to manage its capabilities.
help an organisation generate and, in some cases, sustain their competitive advantage.
dynamic capabilities are idiosyncratic.
how is build
2.1 Sensing, seizing and transforming processes
dynamic capabilities functioning three processes:
2.seizing
processes are interrelated and combine
3.transforming
1.Sensing
2.3 Dynamic capabilities in highly dynamic markets
Eisenhardt and Martin (2000) arguement
2.4 Simple rules for dynamic situations
How-to rules
Boundary rules
Exit rules
Timing rules
Priority rules
3 Functional-level strategy and competitive advantage
main functional-level strategies
superior efficiency
factors
general
The learning or experience curve
Economies of scale
Manufacturing firms,
Flexible production systems
Mass customisation
Table 11.1 Functional-level strategies and organisational efficiency
Functional-level strategies and organisational efficiency
superior quality
quality management
six rules
embrace the philosophy that mistakes, defects and poor-quality materials are not acceptable and should be eliminated.
should be improved by allowing more time for supervisors to work with employees, and training employees in appropriate skills for the job.
create an environment in which employees will not fear reporting problems or recommending improvements.
should also include some notion of quality to promote the production of defect-free output.
Management is responsible for training employees in new skills to keep pace with changes in the workplace.
Achieving better quality requires the commitment of everyone in the company.
Table 11.2 Contributions of different organisational functions to enhancing reliability
excellence
acheiving it
superior innovation
reducing the failure rates of innovation.
product development projects are driven by customer needs
new products are designed for ease of manufacture
development costs are not allowed to spiral out of control
the time it takes to develop a product and bring it to market is minimised
close integration between R&D and marketing is achieved, helping to ensure that product development projects are driven by the needs of the customer.
Table 11.3 Ways in which organisational functions can contribute to achieving superior innovation
superior responsiveness to customers.
how acheive it
Focusing on the customer.
Demonstrating leadership.
Shaping employee attitudes.
Knowing customer needs.
Table 11.4 Involvement of organisational functions in achieving superior customer responsiveness
Business-level strategies forms
cost leadership
broad differentiation
cost focus
differentiation focus