Pest Analysis of Foster Beer

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Exhibit 3.1

Strategic capabilities and competitive advantage

Exhibit 3.2

Strategic capability: the terminology

Exhibit 3.3

Sources of cost efficiency

Exhibit 3.4

The experience curve

Exhibit 3.5

Criteria for inimitability of strategic capabilities

Analyzing Resources & Capabilities
OUTLINE
• The role of resources and capabilities in strategy formulation. • The resources of the firm • Organizational capabilities • Appraising the profit potential of resources and capabilities • Putting resource and capability analysis to work—a practical guide • Creating new capabilities.

Shifting the Focus of Strategy Analysis: From the External to the Internal Environment

THE FIRM Goals and Values Resources and Capabilities Structure and Systems

THE INDUSTRY ENVIRONMENT

STRATEGY
STRATEGY

•Competitors •Customers •Suppliers

The Firm-Strategy Interface

The Environment-Strategy Interface

Rationale for the Resource-based Approach to Strategy

• When the external environment is subject to rapid change, internal resources and capabilities offer a more secure basis for strategy than market focus.

• Resources and capabilities are the primary sources of profitability

The Evolution of Honda Motor Company
Honda Technical Research Institute founded 1st Competes in Isle of Man TT motorcycle races 4-cylinder 750cc motorcycle 1st gasoline-powered car to meet US Low Emission Vehicle Standard Civic Hybrid (dual gasoline/ electric)

motorcycle: 98cc, 2-cycle Dream D

Portable generator

405cc motor cycle 1955 1960 1965 1970

Power products: ground tillers, marine engines, generators, pumps, chainsaws snowblowers

Civic GS (natural gas powered)

1946 1950

1975

1980

1985

1990

1995

2000

4 cycle engine

The 50cc Supercub

N360 mini car Honda Civic 1000cc Goldwing touring motor cycle

Acura Car division

Home cogeneration system

First product: Model A clip-on engine for bicycles

Enters Formula 1 Gran Prix racing

Enters Indy car racing

Honda FCX fuel cell car

Canon: Products and Core Technical Capabilities Precision Mechanics 35mm SLR camera Compact fashion camera EOS autofocus camera Digital camera Video still camera

Fine Optics

Plain-paper copier Color copier Color laser copier Laser copier Basic fax Laser fax Mask aligners Inkjet printer Excimer laser aligners Laser printer Color video printer Stepper aligners Calculator Notebook computer

MicroElectronics

Links between Products & Capabilities: Capability-Based Strategy at 3M Carborundum mining

Sandpaper

PRODUCTS

Videotape Floppy disks & Scotchtape Audio tape data storage products Acetate Post-it notes film Housewares/kitchen products Surgical tapes & dressings Pharmaceuticals Materials sciences Health sciences Flexible circuitry

Road signs & markings

CAPABILITIES
Abrasives Adhesives

Microreplication

Thin-film technologies

New-product development & introduction

Evolution of Capabilities and Products: 3M
Sandpaper
Videotape Floppy disks & Scotchtape Audio tape data storage products Acetate Post-it notes film Housewares/kitchen products Surgical tapes & dressings Pharmaceuticals Materials sciences Health sciences Flexible circuitry

Carborundum mining

Road signs & markings

PRODUCTS

CAPABILITIES
Abrasives Adhesives

Microreplication

Thin-film technologies

New-product development & introduction

Eastman Kodak’s Dilemma

Resources & Capabilities
1980‟s Chemical Imaging
•Organic Chemistry •Polymer technology •Optomechtronics •Thin-film coatings

Businesses
Film Cameras Fine Chemicals Pharmaceuticals Diagnostics

Brands Global Distribution 1990‟s

DIVESTS: Eastman Chemical, Sterling Winthrop, Diagnostics Need to build digital imaging capability Digital Imaging Products (e.g. Photo CD System; Advantix cameras & film

The Links between Resources, Capabilities and Competitive Advantage COMPETITIVE ADVANTAGE...
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