Upload
ginger-brown
View
213
Download
0
Tags:
Embed Size (px)
Citation preview
Assessing the Internal
Environment of the Firm
Chapter Three
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning ObjectivesAfter reading this chapter, you should have a good
understanding of:LO3.1 The benefits and limitations of SWOT analysis in
conducting an internal analysis of the firm.LO3.2 The primary and support activities of a firm’s value
chain.LO3.3 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.
LO3.4 The resource-based view of the firm and the different types of tangible and intangible resources, as well as organizational capabilities.
3-2
Learning Objectives (cont.)LO 3.5 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.
LO 3.6 The usefulness of financial ratio analysis, its inherent limitations, and how to make meaningful comparisons of performance across firms.
LO 3.7 The value of the “balanced scorecard” in recognizing how the interests of a variety of stakeholders can be interrelated.
LO 3.8 How firms are using Internet technologies to add value and achieve unique advantages. (Appendix)
3-3
Value-Chain Analysis
Value-chain analysis a strategic analysis of an organization that
uses value creating activities.
Value is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue
3-4
Value-Chain Analysis
Primary activities contribute to the physical creation of the
product or service, its sale and transfer to the buyer, and its service after the sale.
inbound logistics, operations, outbound logistics, marketing and sales, and service
3-5
Value-Chain Analysis
Support activities activities of the value chain that either add
value by themselves or add value through important relationships with both primary activities and other support activities
procurement, technology development, human resource management, and general administration.
3-6
The Value Chain
3-7Exhibit 3.1
Support Activity: Human Resource Management
Activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel Effective recruiting, development, and
retention mechanisms for employees Quality relations with trade unions Reward and incentive programs to motivate
all employees
3-8
Support Activity: Technology Development
Related to a wide range of activities and those embodied in processes and equipment and the product itself Effective R&D activities for process and
product initiatives Positive collaborative relationships between
R&D and other departments Excellent professional qualifications of
personnel
3-9
Value Chains in Service Industries
3-10Exhibit 3.4
Resource-Based View of the Firm
Resource-based view of the firm perspective that firms’ competitive
advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.
3-11
Types of Resources
Tangible resources organizational assets that are relatively easy
to identify, including physical assets, financial resources, organizational resources, and technological resources.
3-12
Types of Resources
Intangible resources organizational assets that are difficult to identify and
account for and are typically embedded in unique routines and practices, including human resources, innovation resources, and reputation resources.
3-13
Types of Resources
Organizational capabilities The competencies
and skills that a firm employs to transform inputs into outputs.
3-14
Five Types of Financial Ratios
3-15