Professional Documents
Culture Documents
Part V: A Strategic Perspective Chapter 9: Strategy + CSR
Part V: A Strategic Perspective Chapter 9: Strategy + CSR
http://
www.benjerry.com/
about-us
12. The Strategy Focused Organisation
(Kaplan, Norton)
13. The Three Parts of Strategy
1. Strategic analysis
2. Strategy formulation
3. Strategy implementation
Core resources are the firm’s assets that are unique and
difficult to replicate.
Core competencies are the processes the firm not only
does very well, but is superior at than its competitors.
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved
21. VRIO (2 of 5)
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved
22. VRIO (3 of 5)
R – Rarity
• Rare capabilities are those possessed uniquely by
one organisation or only by a few others.
(e.g. a company may have patented products, have
supremely talented people or a powerful brand.)
• Rarity could be temporary.
(e.g. Patents expire, key individuals can leave or
brands can be de-valued by adverse publicity.)
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved
23. VRIO (4 of 5)
I – Inimitability
Inimitable capabilities are those that competitors find
difficult and costly to imitate, to obtain or to substitute.
• Competitive advantage can be built on unique
resources (a key individual or IT system) but these may
not always be sustainable (key people leave or others
acquire the same systems).
• Sustainable advantage is more often found in
competences (the way resources are managed,
developed and deployed) and the way competences
are linked together and integrated.
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved
24. VRIO (5 of 5)
O – Organisational support
The organisation must be suitably organised to
support the valuable, rare and inimitable
capabilities that it has. This includes appropriate
processes and systems.
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved
25. VRIO
It is only when all four conditions apply that the firm has a
competitive advantage that can be sustained over time.
Aircraft manufacturing
versus
Passenger airlines
• Supplier power:
Capabilities are actions that a firm can do, such as pay its bills,
in ways that add value to the production process.
Competencies are actions a firm can do very well.
Core resources are the assets of the firm that are unique and
difficult to replicate.
Core competencies are the processes that the firm not only
does very well, but is so superior at performing that it is difficult
for other firms to match its performance.
• Motion: