Post on 17-Jan-2016
Prentice Hall, Inc. © 2008 5-1
STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
CHAPTER 5Internal Scanning: Organizational Analysis
Prentice Hall, Inc. © 2008 5-2
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
•Resources•Capabilities•Competency•Core competency•Distinctive competency
Prentice Hall, Inc. © 2008 5-3
Core and Distinctive Competencies
VRIO Framework --
–Value
–Rareness
–Imitability
–Organization
Prentice Hall, Inc. © 2008 5-4
Resource-Based Approach to Organizational Analysis
5-Step Approach Strategy Analysis --
1. Identify and classify resources2. Combine strengths into capabilities3. Appraise profit potential of capabilities4. Select strategy that best exploits 5. Identify resource gaps invest in weaknesses
Prentice Hall, Inc. © 2008 5-5
Continuum of Sustainability
Prentice Hall, Inc. © 2008 5-6
Sustainability of 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
Prentice Hall, Inc. © 2008 5-7
Sustainability of Advantage
Core Competency can be imitated --
–Transparency–Transferability–Replicability
Prentice Hall, Inc. © 2008 5-8
Business Models
Company’s method for making money in the current business environment.
Prentice Hall, Inc. © 2008 5-9
Business Models
Types of Models --
–Customer Solutions Model–Profit Pyramid Model–Multi-Component System/Installed Base Model–Advertising Model–Switchboard Model
Prentice Hall, Inc. © 2008 5-10
Business Models
Types of Models --
–Time Model–Efficiency Model–Blockbuster Model–Profit Multiplier Model–Entrepreneurial Model–De Facto Standard Model
Prentice Hall, Inc. © 2008 5-11
Value-Chain Analysis
Typical Value Chain for a Manufactured Product
Linked set of value-creating activities beginning with basic raw material and ending with distributors getting final goods into hands of customers
Prentice Hall, Inc. © 2008 5-12
Corporation’s Value Chain
Prentice Hall, Inc. © 2008 5-13
Scanning Functional Resources & Capabilities
Basic Organizational Structures --
–Simple structure–Functional structure–Divisional structure–Strategic business units (SBU’s)–Conglomerate structure
Prentice Hall, Inc. © 2008 5-14
Basic Organizational Structures
Prentice Hall, Inc. © 2008 5-15
Corporate Culture
Collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another
Prentice Hall, Inc. © 2008 5-16
Strategic Marketing Issues
–Market Position & Segmentation–Marketing Mix–Product Life Cycle–Brand & Corporate Reputation
Prentice Hall, Inc. © 2008 5-17
Product Life Cycle
Prentice Hall, Inc. © 2008 5-18
Strategic Financial Issues
–Financial leverage
–Capital budgeting
Prentice Hall, Inc. © 2008 5-19
Strategic Research & Development Issues
–R&D Intensity
–Technological Competence
–Technology Transfer
Prentice Hall, Inc. © 2008 5-20
Technological Discontinuity
Prentice Hall, Inc. © 2008 5-21
Strategic Human Resource Management Issues
HRM –
–Increasing use of teams–Union relations –Temporary workers–Quality of work life–Human diversity
Prentice Hall, Inc. © 2008 5-22
Internal Factor Analysis Summary Table