Professional Documents
Culture Documents
CH03 PowerPoint HIH9e
CH03 PowerPoint HIH9e
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 3: The Internal Organization:
Resources, Capabilities, Core Competencies
and Competitive Advantages
• Overview: Eight content areas
– Importance of understanding internal organization
– Value: Definition and importance
– Tangible vs intangible resources
– Capabilities: Definition and development
– Core competencies: Criteria
– Value Chain Analysis
– Outsourcing: Definition and “why?”
– Internal organization assessment and strategic
decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Innovation in Action: Apple
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 3: The Internal Organization:
Resources, Capabilities, Core Competencies
and Competitive Advantages
• Overview: Eight content areas
– Importance of understanding internal
organization
– Value: Definition and importance
– Tangible vs intangible resources
– Capabilities: Definition and development
– Core competencies: Criteria
– Value Chain Analysis
– Outsourcing: Definition and “why?”
– Internal organization assessment and strategic
decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analyzing the Internal Organization (IO)
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analyzing the Internal Organization (IO) (Cont’d)
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Components of Internal Analysis Leading to
Competitive Advantage and Strategic
Competitiveness
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analyzing the Internal Organization (IO) (Cont’d)
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analyzing the Internal Organization (IO) (Cont’d)
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Conditions Affecting Managerial Decisions
About Resources, Capabilities, and Core
Competencies
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 3: The Internal Organization:
Resources, Capabilities, Core Competencies
and Competitive Advantages
• Overview: Eight content areas
– Importance of understanding internal organization
– Value: Definition and importance
– Tangible vs. intangible resources
– Capabilities: Definition and development
– Core competencies: Criteria
– Value Chain Analysis
– Outsourcing: Definition and “why?”
– Internal organization assessment and strategic
decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Resources, Capabilities and Core
Competencies
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Resources, Capabilities and Core
Competencies
• Tangible Resources
– Assets that can be seen, touched and quantified
– Examples include equipment, facilities, distribution
centers, formal reporting structures
– Four specific types
• Intangible Resources
– Assets rooted deeply in the firm’s history, accumulated
over time
– In comparison to ‘tangible’ resources, usually can’t be
seen or touched
– Examples include knowledge, trusts, organizational
routines, capabilities, innovation, brand name, reputation
– Three specific types
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 3: The Internal Organization:
Resources, Capabilities, Core Competencies
and Competitive Advantages
• Overview: Eight content areas
– Importance of understanding internal organization
– Value: Definition and importance
– Tangible vs. intangible resources
– Capabilities: Definition and development
– Core competencies: Criteria
– Value Chain Analysis
– Outsourcing: Definition and “why?”
– Internal organization assessment and strategic
decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Building Core Competencies:
Criteria and Value Chain Analysis
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Building Core Competencies:
Criteria and Value Chain Analysis
• Four specific criteria of sustainable competitive
advantage – capabilities that are:
– Valuable
– Rare
– Costly-to-imitate
– Nonsubstitutable capabilities
• Competitive consequences:
– Focus on capabilities that yield competitive parity and
either temporary or sustainable competitive advantage
• Performance implications include:
– Parity = average returns
– Temporary advantage = avg. to above avg. returns
– Sustainable advantage = above average returns
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Building Core Competencies:
Criteria and Value Chain Analysis
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Basic Value Chain
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 3: The Internal Organization:
Resources, Capabilities, Core Competencies
and Competitive Advantages
• Overview: Eight content areas
– Importance of understanding internal organization
– Value: Definition and importance
– Tangible vs. intangible resources
– Capabilities: Definition and development
– Core competencies: Criteria
– Value Chain Analysis
– Outsourcing: Definition and “why?”
– Internal organization assessment and strategic
decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Outsourcing
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Organization Assessment and
Strategic Decisions
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ansoff Matrix
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Grand Strategy Matrix
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal-External (IE) Matrix
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal-External Matrix
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Generic Strategy
O
Stability Growth
- Pause/Proceed with caution
- No change strategy
- Profit strategy
W S
- Turnaround - Related
- Captive company - Unrelated
- Sell-out/Divestment
- Bankruptcy/Liquidation
Retrenchment Diversification
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TOWS Matrix
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TOWS Matrix (cont’d)
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.