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INTERNAL ANALYSIS
Team BJames Akosah, Sanna Burton, Joseph Buyondo, Mohammed El Uharani, Linci Elvis,
Evgeni Kurten, Yaoyu Ma, Tikere Nhambo, Armando Pereira, Nora Uotila, Paulo Vieira, Laura Wild
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Content:-The Resource-Based Model –Gary Hamel–Resources, Capabilities and Competencies –Value Chain Analysis
Internal Analysis
definition:
A process of identifying and evaluating
an organizations specific characteristics
lnternal analysis focus on the current
situation; vision, mission, strategic
objectives and strategies to be able to
understand the needed changes.
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What is a Resource-Based Model:
A concept that:
Adopts an internal perspective
Firm’s are unique bundles of resources
Firm’s resources are most important in getting and keeping competitive advantage
Resources are any assets such as:
Financial (cash reserves, investments…)
Human (experience, knowledge, skills, abilities and competencies)
Physical (equipment, office buildings, manufacturing, raw material or any other intangible materials)
Intangible (Brand, patents, reputation, trademarks and databases)
What makes them ”unique”?
Valuable, allowing the company to exploit opportunities or neutralize the external environment.
Rare or possessed by few, if any current and potential competitors.
Hard to imitate such that other competitors cant or build same or obtain only at cost disadvantage.
Ability to exploit take full advantage of the resources to develop competitive advantage.
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Gary Hamel
Facebook Generation
Dr. Gary P. Hamel :American management expert.
Graduate of Andrews University (1975) and the Ross School of Business at the University of Michigan (1990).
Gary Hamel is the originator (with C. K. Prahalad) of the concept of core competencies
The Wall Street Journal recently ranked Gary Hamel as the world's most influential business thinker
His latest book, The Future of Management, was published by the Harvard Business School Press in October 2007 and was selected by Amazon.com as the best business book of the year
The internet and the business world are full of materials
regarding Gary Hamel. By this reason, is very hard to
choose one of his works only. His latest publishing is The
Future of Management, published by Harvard Business
School Press, in 2007. He became a Guru in the business
world and few persons have similar influence in this field as
him. To illustrate this report was chose a specific article
published by The Wall Street Journal, in March 24, 2009. In
the chosen article, Gary Hamel anticipates one more time
the future of management environment creating a list of, in
his opinion, what he called the Facebook Generation.
Following are listed the 12 characteristics of what Gary
Hamel has called the GenF.
All ideas compete on an equal footing
Contribution counts for more than
credentials
Hierarchies are natural, not prescribed
Leaders serve rather than preside
Tasks are chosen, not assigned
Groups are self-defining and -organizing Resources get attracted, not allocated Power comes from sharing information,
not hoarding it Opinions compound and decisions are
peer-reviewed Users can veto most policy decisions Intrinsic rewards matter most Hackers are heroes
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Organizational Capabilities
Organizational routines and processes
->Turning input, i.e. resources, into output
->Getting value out of the
resources
Turning captured value into
->Core competences
->Distinctive organizational capabilities
Gaining competitive advantage
Dynamic Organizational Capabilities
Tackling the challenges from changing environment
Sustainable competitive advantage
Ability to build, integrate and reconfigure capabilities
->Timely responsiveness
->Rapid and flexible product innovation
->Management expertise in coordinating and redeploying resources and capabilities
RReeResources
Assets for carrying out what ever work activities/processes the organization is doing in it’s business
Resources are the source of company’s competitive advantage
But more importantly determines the capabilities and core competencies
Resources alone are not productive->process
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Core Competencies and Distinctive Capabilities
Core competencies = any major value-creating capabilities organizations have that are essential to their business
Organizational capabilities are fundamental building blocks for developing core competencies
lf core competencies are established
->Can improve and enhance other organizational capabilities
->Can contribute to developing distinctive capabilities
->Leads to a competitive advantage
Distinctive organizational capabilities = special and unique capabilities that distinguish an organization from its competitors
Three characteristics:
Contributes to superior customer value
Is difficult for competitors to imitate
Can be used in a variety ofways
Value Chain Model
•Systematic approach to examining the development of competitive advantage
•Created by M. E. Porter-Competitive Advantage (1980).
•Activities that create and build value
–Primary activities and support activities
all together consist of activities that link together to develop the value of the business
Definition
• Primary activities
a)Inbound logistics
b)Operations
c)Outbound logistics
d)Marketing and sales
e)Service
•Support activities
a)Procurement
b)Human Resource Management
c)Technology Development
d)Firm Infrastructure
Value chain activities are not independent from one another. one value chain activity often affects the performance of other ones.
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InboundLogistics > Operations >
OutboundLogistics
>Marketing
&Sales
> Service >
MARGIN
Firm Infrastructure
HR Management
Technology Development
Procurement
Porter's Generic Value Chain
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Steps in Value Chain Analysis
•Break down a market
•Assess the potential for adding value via cost advantage or differentiation,
•Determine strategies built around focusing on activities where competitive advantage can be sustained.
Cost Advantage and the Value Chain
•A firm may create a cost advantage,
–Reducing the cost of individual value chain activities or
– Reconfiguring the value chain.•cost drivers -value chain activities
–Economies of scale
–Learning Capacity
–utilization Linkages among activities.etc.
•Cost advantage: by better understanding costs and squeezing them out of the value-adding activities.
•Differentiation: core competencies and capabilities are the main objective of the activities so as to perform better than competitors do.
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