Wheelen10 Ppt05 Pjd
CHAPTER 5
Internal
Scanning:
Organizational
Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY
10TH EDITION
THOMAS L. WHEELEN
Prentice Hall, Inc. © 2006
J. DAVID HUNGER
5-1
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 Prentice Hall, Inc. © 2006
5-2
Resource-Based Approach to Organizational Analysis
Core and Distinctive Competencies
•Resources – physical, human and organizational •Capabilities – functional business processes
•Competency – integration/coordination of capabilities •Core competency – something that the company does well.
•Distinctive competency – core competency done better than competitors
Prentice Hall, Inc. © 2006
5-3
Core and Distinctive Competencies
VRIO Framework – (Barney) for defining
Distinctive Competencies
–Value – To the Customer/Competitive Adv.
–Rareness – Do others do it?
–Imitability – Costly to imitate?
–Organization – Can firm exploit the resource?
Prentice Hall, Inc. © 2006
5-4
Resource-Based Approach to Organizational Analysis
5-Step Resource Approach to Strategy
Analysis – (Grant)
1.
2.
3.
4.
5.
Identify and classify resources
Combine strengths into capabilities
Appraise profit potential of capabilities
Select strategy that best exploits strengths
Identify resource gaps invest in weaknesses
Prentice Hall, Inc. © 2006
5-5
Sustainability of Advantage
Sustainability of an 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
–Transparency
–Transferability
–Replicability
Explicit versus Tacit Knowledge
Prentice Hall, Inc. © 2006
5-6
Continuum of Sustainability
Prentice Hall, Inc. © 2006
5-7
Business Models
Business Model
Company’s method for making money in
the
Internal
Scanning:
Organizational
Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY
10TH EDITION
THOMAS L. WHEELEN
Prentice Hall, Inc. © 2006
J. DAVID HUNGER
5-1
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 Prentice Hall, Inc. © 2006
5-2
Resource-Based Approach to Organizational Analysis
Core and Distinctive Competencies
•Resources – physical, human and organizational •Capabilities – functional business processes
•Competency – integration/coordination of capabilities •Core competency – something that the company does well.
•Distinctive competency – core competency done better than competitors
Prentice Hall, Inc. © 2006
5-3
Core and Distinctive Competencies
VRIO Framework – (Barney) for defining
Distinctive Competencies
–Value – To the Customer/Competitive Adv.
–Rareness – Do others do it?
–Imitability – Costly to imitate?
–Organization – Can firm exploit the resource?
Prentice Hall, Inc. © 2006
5-4
Resource-Based Approach to Organizational Analysis
5-Step Resource Approach to Strategy
Analysis – (Grant)
1.
2.
3.
4.
5.
Identify and classify resources
Combine strengths into capabilities
Appraise profit potential of capabilities
Select strategy that best exploits strengths
Identify resource gaps invest in weaknesses
Prentice Hall, Inc. © 2006
5-5
Sustainability of Advantage
Sustainability of an 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
–Transparency
–Transferability
–Replicability
Explicit versus Tacit Knowledge
Prentice Hall, Inc. © 2006
5-6
Continuum of Sustainability
Prentice Hall, Inc. © 2006
5-7
Business Models
Business Model
Company’s method for making money in
the