Sbs-Tbs
Chapter 4 Leveraging Resources and capabilities
Resource- based view - a leading perspective in global business that posits that firm performance is basically driven by differences in firm-specific resources and capabilities
SWOT analysis:
SW= Strength and weakness Internal assessment of the org. leading to management decisions
OT = Opportunities and Threats External External assessment of the business environment to identify the uncontrollable events that might impact management decisions
Resources / capability:
Tangible – assets that are observable and easily quantified e.g. Financial, Physical, Technological, Organizational
Intangible – assets that are hard to observe and difficult to quantify e.g. Human, Innovation, Reputational
Value chain: In-house vs. Outsource
Value chain is a chain of vertical activities used in the production of goods and services that add value 1. Examine whether the firm has resources and capabilities to perform a particular activity , a process known as Benchmarking in SWOT analysis
SWOT analysis the value chain to decide whether keep activity in-house or outsource
Outsourcing: turning over and organizational activity to an outside supplier that will perform it on behalf of the focal firm
Offshoring: outsourcing to an international or foreign firm
Inshoring: outsourcing to a domestic firm
Captive sourcing: setting up subsidiaries abroad – the work done is in-house but the location is foreign
VRIO FRAMEWORK:
Value – only value-adding resources can possibly lead to competitive advantages
Rarity – only valuable and rare resources and capabilities have the potential to provide some temporary competitive advantage
Imitability – source of competitive advantage only if competitors’ have a difficult time imitating them.
Imitation is difficult: - causal ambiguity: the difficult of identifying the causal determinants of successful firm performance
Resource- based view - a leading perspective in global business that posits that firm performance is basically driven by differences in firm-specific resources and capabilities
SWOT analysis:
SW= Strength and weakness Internal assessment of the org. leading to management decisions
OT = Opportunities and Threats External External assessment of the business environment to identify the uncontrollable events that might impact management decisions
Resources / capability:
Tangible – assets that are observable and easily quantified e.g. Financial, Physical, Technological, Organizational
Intangible – assets that are hard to observe and difficult to quantify e.g. Human, Innovation, Reputational
Value chain: In-house vs. Outsource
Value chain is a chain of vertical activities used in the production of goods and services that add value 1. Examine whether the firm has resources and capabilities to perform a particular activity , a process known as Benchmarking in SWOT analysis
SWOT analysis the value chain to decide whether keep activity in-house or outsource
Outsourcing: turning over and organizational activity to an outside supplier that will perform it on behalf of the focal firm
Offshoring: outsourcing to an international or foreign firm
Inshoring: outsourcing to a domestic firm
Captive sourcing: setting up subsidiaries abroad – the work done is in-house but the location is foreign
VRIO FRAMEWORK:
Value – only value-adding resources can possibly lead to competitive advantages
Rarity – only valuable and rare resources and capabilities have the potential to provide some temporary competitive advantage
Imitability – source of competitive advantage only if competitors’ have a difficult time imitating them.
Imitation is difficult: - causal ambiguity: the difficult of identifying the causal determinants of successful firm performance