5-1 CHAPTER 5 Internal Scanning: Organizational Analysis

5-1

CHAPTER 5Internal Scanning: Organizational Analysis

5-2

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

5-3

Resource-Based Approach to Organizational Analysis

•Resources

•Capabilities

•Competency

•Core competency

•Distinctive competency

5-4

Core and Distinctive Competencies

VRIO Framework --

–Value

–Rareness

–Imitability

–Organization

5-5

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

5-6

Continuum of Sustainability

5-7

Sustainability of Advantage

Durability --

– Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete

Imitability --

– Rate at which a firm’s underlying resources and capabilities can be duplicated by others

5-8

Sustainability of Advantage

Core Competency can be imitated --

–Transparency

–Transferability

–Replicability

5-9

Business Models

Company’s method for making money in the current business environment.

5-10

Business Models

Types of Models --

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

5-11

Business Models

Types of Models --

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

5-12

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

5-13

Value-Chain Analysis

Typical Value Chain for a Manufactured Product

5-14

Corporate Value-Chain Analysis

•Primary activities

•Support activities

5-15

Corporation’s Value Chain

5-16

Scanning Functional Resources & Capabilities

Basic Organizational Structures --

–Simple structure

–Functional structure

–Divisional structure

–Strategic business units (SBU’s)

–Conglomerate structure

5-17

Basic Organizational Structures

5-18

Corporate Culture

Collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another

5-19

Strategic Marketing Issues

–Market Position & Segmentation

–Marketing Mix

–Product Life Cycle

–Brand & Corporate Reputation

5-20

Strategic Financial Issues

–Financial leverage

–Capital budgeting

5-21

Strategic Research & Development Issues

–R&D Intensity

–Technological Competence

–Technology Transfer

5-22

Technological Discontinuity

5-23

Strategic Human Resource Management Issues

HRM –

–Increasing use of teams

–Union relations

–Temporary workers

–Quality of work life

–Human diversity

5-24

Internal Factor Analysis Summary Table