Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 5: Internal Environmental Analysis - Coggle Diagram
Chapter 5: Internal Environmental Analysis
Resource Based View, simplified mean the orgs resources are more important than the industry structure in order to gain a Competitive Advantage
Resources
Intangible resources: Technology, Human resources, innovation and reputation, i.e Income from patents and copyright, brand recognition, measuring corporate reputation
Orgs often rely on the intangible resources for their core competencies and capabilities.
more intangible and unobservable the resources, the greater chance it will lead to a sustainable competitive advantage
more practical i.e. :
reputation of the firm and product
employee know-how
perception of quality
ability to manage change
ability to innovate
team-working ability
participative management style
3 types of intangible resources:
Human resources(incl. the knowledge, trust and managerial capabilities)
Innovation resources(incl. ideas, scientific capabilities and capacity to innovate)
Reputational resources(incl. brand name, reputation with customers, perceptions of product quality and reliability)
5 Tangible assets: refers to the business location status and equipment i.e Financial capital, Physical capital, Technological, and human capital, organizational capital.
Better examples would be the financial situation of the org?
The appearance and functionality of the location
The patented ingredients and formulas, like coca cola and kfc recipe
skills the employees possess
Organizational capabilities; refers to the capacity to deploy resources through a complex process of interactions with the tangible and intangible resources
This determines how efficiently and effectively the inputs in the organization will be transformed into outputs
Types of capabilities(3):
Threshold capability; minimum capabilities needed to compete in a market
Distinctive Capabilities; the thing that makes the firm perform better than its rivals
Dynamic Capability; Ability to build, integrate and restructure capabilities to address the rapidly changing environment
the foundations of which lies in the skills and knowledge of the employees and often in their functional expertise
Thus the orgs must invest in employees' continuous development
For a resource, to have value and lead to a competitive advantage it must fall under the Empirical Indicators, it must be either: VRIO
Valuable
Rare
hard to Imitate
exploitable by the Org
Value Chain analysis and the PRIMARY AND SUPPORTING ACTIVITIES
Value-chain analysis; the method of analysis that inspects the overall production of an org to see where the value is added to the final product. Simply put the Inputs to output
Refer to book in order to see the Swot matrix analysing the where the value can be added
Primary activities;
Input logistics,
Operations
output logistics
marketing
customer service
Support activities;
Procurement
Technological Development
Human Resource Management
General Admin and Infrastructure
Financial Management
Functional Approach, the internal analysis of the the functions and audits, the production, R&D, and marketing