CHAPTER 5

Internal Scanning: Organizational

Analysis

5-1

Resource-Based Approach to Organizational Analysis

Internal strategic factors - Critical strengths and weaknesses that are

likely to determine if the firm will be able to
take advantage of opportunities while
avoiding threats

5-2

Resource-Based Approach to Organizational Analysis

Resources
Capabilities
Competency
Core competency
Distinctive competency
5-3

Core and Distinctive Competencies

VRIO Framework -Value

Rareness
Imitability
Organization

5-4

Resource-Based Approach to Organizational Analysis

5-Step Approach Strategy Analysis -1. Identify and classify resources

2. Combine strengths into capabilities
3. Appraise profit potential of capabilities
4. Select strategy that best exploits
5. Identify resource gaps invest in weaknesses
5-5

Continuum of Sustainability

5-6

Sustainability of Advantage

Durability - Rate at which a firms underlying resources

and capabilities depreciate or become
obsolete

Imitability - Rate at which a firms underlying resources

and capabilities can be duplicated by others

5-7

Sustainability of Advantage

Core Competency can be imitated -Transparency

Transferability
Replicability

5-8

Business Models

Companys method for making money in

the current business environment.

5-9

Business Models

Types of Models -Customer Solutions Model

Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model

5-10

Business Models

Types of Models -Time Model

Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model

5-11

Value-Chain Analysis

Linked set of value-creating activities

beginning with basic raw material and
ending with distributors getting final
goods into hands of customers

5-12

Value-Chain Analysis

Typical Value Chain for

a Manufactured Product

5-13

Corporate Value-Chain Analysis

Primary activities
Support activities

5-14

Corporations Value Chain

5-15

Scanning Functional Resources & Capabilities

Basic Organizational Structures -Simple structure

Functional structure
Divisional structure
Strategic business units (SBUs)
Conglomerate structure
5-16

Basic Organizational Structures

5-17

Corporate Culture

Collection of beliefs, expectations,

and values learned and shared by
a corporations members and
transmitted from one generation of
employees to another

5-18

Strategic Marketing Issues

Market Position & Segmentation

Marketing Mix
Product Life Cycle
Brand & Corporate Reputation
5-19

Strategic Financial Issues

Financial leverage
Capital budgeting

5-20

Strategic Research & Development Issues

R&D Intensity
Technological Competence
Technology Transfer

5-21

Technological Discontinuity

5-22

Strategic Human Resource Management Issues

HRM
Increasing use of teams
Union relations
Temporary workers
Quality of work life
Human diversity

5-23

Internal Factor Analysis Summary Table

5-24