1. CHAPTER 5 Internal Scanning: Organizational Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY 12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Prentice Hall 2006

2. Internal strategic factors --
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
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3. VRIO Framework -- Value Rareness Imitability Organization
Core and Distinctive Competencies
VRIO Framework --
Value
Rareness
Imitability
Organization
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4. 5-Step Approach Strategy Analysis --
Resource-Based Approach to Organizational Analysis
5-Step Approach Strategy Analysis --
Identify and classify resources
Combine strengths into capabilities
Appraise profit potential of capabilities
Select strategy that best exploits
Identify resource gaps invest in weaknesses
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5. Continuum of Sustainability
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6. Imitability -- Durability --
Sustainability of Advantage
Imitability --
Rate at which a firm’s underlying resources and capabilities can be duplicated by others
Durability --
Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete
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7. Core Competency can be imitated --
Sustainability of Advantage
Core Competency can be imitated --
Transparency
Transferability
Replicability
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8. Company’s method for making money in the current business environment.
Business Models
BUSINESS MODEL:
Company’s method for making money in the current business environment.
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9. Types of Business Models --
Customer Solutions Model
Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model
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10. Types of Models -- Time Model Efficiency Model Blockbuster Model
Business Models
Types of Models --
Time Model
Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model
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11. Typical Value Chain for a Manufactured Product
Value-Chain Analysis
Linked set of value-creating activities beginning with basic raw material and ending with distributors getting final goods into hands of customers
Typical Value Chain for a Manufactured Product
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12. Corporation’s Value Chain
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13. Basic Organizational Structures --
Scanning Functional Resources & Capabilities
Basic Organizational Structures --
Simple structure
Functional structure
Divisional structure
Strategic business units (SBU’s)
Conglomerate structure
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14. Basic Organizational Structures
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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
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16. Market Position & Segmentation Marketing Mix Product Life Cycle
Strategic Marketing Issues
Market Position & Segmentation
Marketing Mix
Product Life Cycle
Brand & Corporate Reputation
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17. Product Life Cycle
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18. Financial leverage Capital budgeting Strategic Financial Issues
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19. Technological Competence Technology Transfer
Strategic Research & Development Issues
R&D Intensity
Technological Competence
Technology Transfer
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20. Technological Discontinuity
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21. Human Resources Management Increasing use of teams Union relations
Strategic Human Resource Management Issues
Human Resources Management
Increasing use of teams
Union relations
Temporary workers
Quality of work life
Human diversity
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22. Internal Factor Analysis Summary Table
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