1. Module 1 Internal Environment Analysis

2. Content Resources Capabilities Competencies ( distinctive & core) Competitive advantage Sustainable Competitive advantage

3. Importance of analysis of internal organization – Global mind-set ’ Ability to study an internal environment in ways that do not depend on the assumptions of a single country, culture, or context – Analyze firm ’ s portfolio of resources and bundle heterogeneous resources and capabilities Understand how to leverage these bundles – An organization's core competencies creates and sustains its competitive advantage

5. Conditions Affecting Managerial Decisions About Resources, Capabilities, and Core Competencies

6. Resources, Capabilities, and Core Competencies Resources, capabilities and core competencies are the foundation of competitive advantage.

7. Resources Competitive advantage is generally based on the unique bundling of several resources. Tangible resource Intangible resources

8. Tangible Resources These are the assets that can be seen and quantified. 1.Financial resources ( borrowing capacity, ability generate internal fund) 2.Organizational resources( formal reporting structure, planning, coordinating system) 3.Physical resources ( access of raw material, location of the plant) 4.Technological resources ( patent, copyright, trademark)

9. Intangible Resources These are the assets that can be seen and quantified. 1.Human resources (knowledge, trust) 2.Innovation resources (ideas, capacity to innovative) 3.Reputational resources (brand name, reputation with suppliers)

10. Capabilities Capabilities exist when resources have been purposely integrated to achieve a specific task or set of tasks.

11. Capabilities- example 1.Distribution : effective use of logistic 2.HR : retaining employees, job satisfaction 3.MIS :control of inventory 4.Marketing : innovative product design, customer satisfaction 5.Management : effective organization structure 6.Manufacturing : quality, 7.R & D : Innovative technology

12. Capabilities Following characteristic of capabilities are source of competitive advantage: Valuable Rare Costly to imitate Nonsubstitutable

13. Core competencies Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rival. It distinguishes company from the competitors and reflects firm’s strength.

14. Competitive advantage sustainable competitive advantage