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Ch5 Revised

ch5

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109 views24 pages

Ch5 Revised

ch5

Uploaded by

shaikha alneyadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Strategic Management and

Business Policy 15e, Global Edition


Chapter 5
Organizational
Analysis and
Competitive
Advantage

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Learning Objectives

5-1 Apply the resource-based view of the firm and the VRIO
framework to determine core and distinctive
competencies
5-2 Use value chain to assess the activities of
an industry and of an organization
5-3 Assess a company’s corporate culture and how it might
affect a proposed strategy
5-4 Construct an IFAS Table that summarizes internal factors

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-2
A Resource-Based Approach
to Organizational Analysis
• Organizational analysis
– concerned with identifying and developing an
organization’s resources and competencies

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-3
Core and Distinctive Competencies
(1 of 5)
• Resources
– An organization’s assets and are thus the basic
building blocks of the organization.
– Tangible, intangible
• Capabilities
– Refer to a corporation’s ability to exploit its
resources.
– Consist of business processes and routines that
manage the interaction among resources to turn
inputs into outputs
Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.
4-5
Core and Distinctive Competencies
(2 of 5)
• Core competency
– a collection of competencies that cross
divisional boundaries, is wide-spread
throughout the corporation and is something
the corporation does exceedingly well
• Distinctive competency
– core competencies that are superior to those of
the competition

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-5
VRIO Framework of Analysis
1. Valuable: Does it provide customer value and
competitive advantage?
2. Rareness: Do no other competitors possess it at
the same level?
3. Imitability: Do the competitors have the
financial ability to imitate?
4. Organization: Is the firm organized to exploit
the resource?

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-6
Core and Distinctive Competencies
(3 of 5)
• Imitability
– the rate at which a firm’s underlying resources,
capabilities, or core competencies can be
duplicated by others

• Transparency
– the speed at which other firms under the
relationship of resources and capabilities
support a successful strategy
Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.
5-7
Core and Distinctive Competencies
(4 of 5)
• Transferability
– the ability of competitors to gather the
resources and capabilities necessary to
support a competitive challenge
• Replicability
– the ability of competitors to use duplicated
resources and capabilities to imitate the other
firm’s success

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-8
Core and Distinctive Competencies
(5 of 5)
• Explicit knowledge
– knowledge that can be easily articulated and
communicated

• Tacit knowledge
– knowledge that is not easily communicated
because it is deeply rooted in employee
experience or in the company’s culture

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-9
Access to a Distinctive Competency
(1 of 2)
1. Asset endowment
2. Acquired from someone else
3. Shared with another business
4. Built and accumulated within the company

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-10
Access to a Distinctive Competency
(2 of 2)
• Clusters
– geographic concentrations of interconnected
companies and industries
• Access to:
– employees
– suppliers
– specialized information
– complementary products

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-11
Value-Chain Analysis
• Value chain
– a linked set of value-creating activities that begin with
basic raw materials coming from suppliers moving on
to a series of value-added activities involved in
producing and marketing a product or service, and
ending with distributors getting the final goods into the
hands of the ultimate consumer.

Figure 5-1: Typical Value Chain for a Manufactured Product

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-12
Industry Value Chain Analysis
Value chain segments include:
• Upstream
• Downstream

• Center of gravity
– the part of the chain that is most important to
the company and the point where its core
competencies lie

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-13
Figure 5-2: A Corporation’s Value Chain

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-14
Corporate Value Chain Analysis
(1 of 2)
Primary Activities Support Activities
• Inbound logistics • Procurement
• Operations • Technology
• Outbound logistics development
• Human resource
management
• Firm infrastructure

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-15
Corporate Value Chain Analysis
(2 of 2)
1. Examine each product line’s value chain in
terms of the various activities involved in
producing the product or service
2. Examine the linkages within each product line’s
value chain
3. Examine the potential synergies among the
value chains of different product lines or
business units

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-16
Culture (1 of 2)
• Corporate culture
– the collection of beliefs, expectations, and
values learned and shared by a corporation’s
members and transmitted from one generation
of employees to another

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-17
Culture (2 of 2)
• Cultural intensity
– the degree to which members of a unit accept
the norms, values and other cultural content
associated with the unit
– shows the culture’s depth
• Cultural integration
– the extent of which units throughout the
organization share a common culture
– culture’s breadth

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-18
Functions of Corporate Culture
1. Conveys a sense of identity for employees
2. Generates employee commitment
3. Adds to the stability of the organization as a
social system
4. Serves as a frame of reference for employees to
understand organizational activities and as a
guide for behavior

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-19
Product Life Cycle (1 of 2)
• Product life cycle
– a graph showing time plotted against the
sales of a product as it moves from
introduction through growth and maturity
to decline.

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-20
Figure 5-4: Product Life Cycle (2 of 2)

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-21
Synthesis of Internal Factors (IFAS)
(1 of 3)
• The IFAS (Internal Factor Analysis Summary)
Table
– one way to organize the internal factors into
the generally accepted categories of strengths
and weaknesses
– examines how well a particular company’s
management is responding to these specific
factors in light of the perceived importance of
these factors

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-22
Synthesis of Internal Factors (IFAS)
(2 of 3)
• Use the VRIO framework (Value, Rareness,
Imitability, and Organization) to
assess the importance of each of the factors
that might be considered strengths.

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-23
Table 5-2: Synthesis of Internal Factors (IFAS) (3
of 3)

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


5-24

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