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Dess Ch03 PPT Final
Dess Ch03 PPT Final
Dess Ch03 PPT Final
Dr. Saddam
Hussain
Learning Objectives
After reading this chapter, you should have a good understanding of:
3-1 The primary and support activities of a firm’s value chain.
3-2 How value-chain analysis can help managers create value by
investigating relationships among activities within the firm and
between the firm and its customers and suppliers.
3-3 The resource-based view of the firm and the different types of
tangible and intangible resources, as well as organizational
capabilities.
3-4 The four criteria that a firm’s resources must possess to maintain a
sustainable advantage and how value created can be appropriated
by employees and managers.
3-5 The usefulness of financial ratio analysis, its inherent limitations,
and how to make meaningful comparisons of performance across
firms.
3-6 The value of the “balanced scorecard” in recognizing how the
interests of a variety of stakeholders can be interrelated.
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The Importance of the Internal
Environment
Consider. . .
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Value-Chain Analysis
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Value-Chain Analysis Primary
Activities
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Question
(1 of 2)
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Value-Chain Analysis Support
Activities
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The Value Chain
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Primary Activity: Operations
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Primary Activity: Outbound Logistics
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Primary Activity:
Marketing & Sales
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Primary Activity: Service
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Support Activity: Procurement
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Support Activity: Technology
Development
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Support Activity: Human Resource
Management
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Support Activity:
General Administration
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Interrelationships Among Value-Chain
Activities
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Example: The Value Chain in Service Organizations
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Types of Tangible Firm Resources
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Types of Intangible Firm Resources
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Types of Firm Resources:
Organizational Capabilities
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Question
(2 of 2)
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Firm Resources and Sustainable
Competitive Advantages
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Sources of Inimitability
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Criteria for Sustainable Competitive Advantage
Is a resource or capability . . .
Valuable? Rare? Difficult to Without Implications for
Imitate? Substitutes? Competitiveness?
No No No No Competitive disadvantage
Exhibit 3.7 Criteria for Sustainable Competitive Advantage and Strategic Implications
Source: Adapted from Barney, J.B. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17:99 – 120.
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The Generation and Distribution of the
Firm’s Profits
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Evaluating Firm Performance
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Financial Ratio Analysis
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The Balanced Scorecard
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Customer Perspective vs. Internal
Business Perspective
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Innovation and Learning Perspective
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Financial Perspective
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Limitations of the Balanced Scorecard
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