1.

Resources Audit
2. Competencies
3. Core Competencies
6 Stages in the process of internal analysis.
4. Assessing balance
5. Identifying Key Issues
6. Understanding strategic capability.

Identifies the resources that are available to

an organisation and seeks to start the
process of identifying competencies.

Resource Audit Assesses quantity, nature & uniqueness of

the resources

M Model can help managers locate these

key factors in a resource audit.

 Manpower ( Human resources)

 Money
 Management
 Machinery
M's Model – Resource Audit  Markets
 Materials
 Methods
 Management information
 Make-up
  Physical or operational resources
 Human resources
Resources Groups
 Financial resources
 Intangibles

A competence is a group of abilities,

resources or skills that enable the
organisation to act effectively.

Core competences – things that you can do

that’s difficult for your competitors to
Competences emulate.

Threshold competences – things that you

do well that will enable you to compete in
the market. (The order qualifiers)

The limited number of areas in which

results, if they are satisfactory, will ensure
competitive performance for the business.

Areas where the business must outperform

its competitors
Critical success factors (CSF)
Problem is CSF are often vague.

Companies should create ways of

measuring whether their CSF’s are being
met. (KPI’s)
 1. The industry the business is in
2. The company itself and its situation
within the industry
Sources for CSF’s
3. The wider environment (economy &
Political factors)
4. Temporal organisation factors

- CSF are what the organisations

needs to be good at in order to
Link between CSF’s & competences compete.
- Competences is what the
organisation is good at.

Activities or features that enhances

the perceived value of a product or
service by customers and which
Value drivers
therefore create value for the
produces. Can be tangible or
intangible
Porters Value chain

1. Inbound logistics
2. Operations
Primary activities of porter’s value chain 3. Outbound logistics
4. Marketing and sales
5. Service

1. Infrastructure
2. Human resource management
Support activities of porter’s value chain
3. Technology development
4. Procurement
 Looks at linking the value chains of
those in the wider organisational
ecosystem to that of the
organisations.

Can add value by:

The Value system
 Enhancing the supply.
 Controlling of the retail
process.
 Linking to all together to give
advantage.

 Provides framework to analyse both

Benefits of Porter’s Value Chain:
the behaviour of the costs as well as
existing and potential sources of
differentiation.
 Activities that are not adding value can
be identifies and addressed.
 Emphasisesthe importance of
(re)grouping functions into activities
to produce market, deliver and support
products.
 Attempt to overcome the
limitations of portfolio planning in
multidivisional organisations.

 More suited to manufacturing

environment
Main Criticisms of Porter’s Value Chain
 Was intended as a quantitative
Model analysis.
 Time consuming
 Workshop which mobilises resources to solve specific
problems. May involve repeating a generic set of
activities until a satisfactory solution is reached.

Same support activities of porter but primary activities

The value shop are described as:
Problem finding & acquisition.
 Problem solving
 Choosing among solutions
 Execution &control/evaluation.