Sources of Organizational Capabilities HBO - 45-792 Sources of Organizational Capabilities...
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HBO - 45-792 Sources of Organizational Capabilities Sources of Organizational Capabilities I. Strategy O.B. Linkage • 5-Forces Framework • Resources-Based View • Sources of Organizational Capabilities • Organizational Architecture II. Smart-Talk Trap III. Teams • Finalize Rosters • Prepare for Presentations
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Transcript of Sources of Organizational Capabilities HBO - 45-792 Sources of Organizational Capabilities...
HBO - 45-792 Sources of Organizational Capabilities
Sources of Organizational
Capabilities
I. Strategy O.B. Linkage• 5-Forces Framework• Resources-Based View• Sources of Organizational Capabilities• Organizational Architecture
II. Smart-Talk Trap
III. Teams• Finalize Rosters• Prepare for Presentations
HBO - 45-792 Sources of Organizational Capabilities
Thinking about Strategy
What is Strategy?
What is Strategic Management?
What do we Mean by Strategic Behavior?
What are the Objectives of Strategy?
HBO - 45-792 Sources of Organizational Capabilities
Core Focus of Strategy
Understanding & Explaining
• Abnormal Performance
• Persistent Profitability
Determinants of Competitive Advantage
HBO - 45-792 Sources of Organizational Capabilities
Porter’s 5-Forces
PotentialEntrants
Suppliers Buyers
Substitutes
IndustryCompetitors
Rivalry AmongExisting Firms
Threat ofNew Entrants
BargainingPower
BargainingPower
Threat of SubstituteProducts or Services
HBO - 45-792 Sources of Organizational Capabilities
Industry StructureMarket Power
What’s Missing?
Determinants ofCompetitive Advantage
HBO - 45-792 Sources of Organizational Capabilities
Resource-Based View
Looking Inside
• Industry Firm
• Market Power Uniqueness
HBO - 45-792 Sources of Organizational Capabilities
Core CompetencePrahalad & Hamel (1990)
Portfolio of Businesses
Portfolio of Competencies
Defined as: what a company is really good atIdentified by:• Access to wide variety of markets• Significant contribution to perceived
customer benefit• Difficult for competitors to imitate
What’s missing?
HBO - 45-792 Sources of Organizational Capabilities
V.R.I.O FrameworkBarney (1995)
Valuable
Rare
Inimitable
Organization
HBO - 45-792 Sources of Organizational Capabilities
V.R.I.O FrameworkBarney (1995)
Valuable Competitive Parity
HBO - 45-792 Sources of Organizational Capabilities
V.R.I.O FrameworkBarney (1995)
Valuable
Competitive Advantage
Competitive Parity
Rare
HBO - 45-792 Sources of Organizational Capabilities
V.R.I.O FrameworkBarney (1995)
Valuable
Sustainable Competitive Advantage
Competitive Advantage
Competitive Parity
Rare
Inimitable
HBO - 45-792 Sources of Organizational Capabilities
V.R.I.O FrameworkBarney (1995)
Valuable
Realized Competitive Advantage
Sustainable Competitive Advantage
Competitive Advantage
Competitive Parity
Rare
Inimitable
Organization
HBO - 45-792 Sources of Organizational Capabilities
Industry Structure
Resources & Capabilities
What’s missing?
Determinants ofCompetitive Advantage
HBO - 45-792 Sources of Organizational Capabilities
Capabilities: set of organizing processes and principles a firm uses to deploy its resources to achieve strategic objectives.
Internal Sources • Experience-Based Learning• Organizational Architecture
(complementary resource)
External Sources • Vicarious Learning
Organizational Capabilities
HBO - 45-792 Sources of Organizational Capabilities
Organizational Architecture
Informal Organization
People
WorkFormal
Organization
Output
System
Unit
Individual
Input
Environment
Resources
History
Strategy
HBO - 45-792 Sources of Organizational Capabilities
Knowing-Doing Gap
Closing the Gap1. Leaders who know & do work2. Plain language, simple concepts3. Asking how, not just why4. Mechanisms to close the loop5. Experience is the best teacher
Smart-Talk Trap
HBO - 45-792 Sources of Organizational Capabilities
For Next Class . . .
Complete •Steps 1 & 2 of Group Ranking Task
Select •Group Presentation Topic
