2 Strategic CapabilityThe resources and competences of an organization needed for it to survive and prosper.Organizational success influenced by:- External environmental factors- Internal factors (capability)
3 Resource-Based View of Strategy Competitive advantage of an organization is largely influenced by the distinctiveness of its capabilitiesInternal capability is critical in the search for sustainable competitive advantage
5 SWOT AnalysisA summary of key issues from the external environment and the strategic capability of an organizationExternal environment: Opportunities and ThreatsInternal environment: Strengths and Weaknesses
6 SWOT Analysis Is the organization capable to deliver its business? - The organization should be able to deal with the challenge facing it.- The organization’s capability should be seen in relation to competition.
7 Value Chain AnalysisValue chain The activities that are performed in the creation of a product or service.- Primary activities- Secondary activitiesThe activities add value and cost in the process of creating products and services.
8 Value Chain AnalysisA company’s value chain is influenced by value chains of other companies.Supplier value chainsDistributor value chainsRetailer value chains
9 Value Chain AnalysisExamination of the various activities in the value chain- In which activities is the company doing well?- Where is the company doing poorly?- Where is the company vulnerable?
10 Value Chain Analysis What can the company do? - Reduce the cost of value chain activities- Perform certain activities uniquely- Reconfigure the value chain
11 BenchmarkingHow the internal capabilities of an organization compare with those of others- Where is the company doing better than others?- Where is the company doing poorer than others?
12 Approaches to Benchmarking Historical benchmarking- Comparisons in relation to the pastIndustry benchmarking- Comparisons within the industryBest-in-class benchmarking- Comparisons with the best performance in the industry
13 Strategic Analysis: Conclusions Identification of strategic issues facing the company- Key issues- Elephant issuesIt is around the strategic issues that:- Objectives will be set- Strategies will be formulated