1. Strategic Management/ Business Policy
Power Point Set #4
EMBA 544

2. Resources and Capabilities
Strategy from a resource-based perspective
How do resources create competitive advantage?
Value-chain analysis
The linkage between organizational learning and capabilities

7. Efficiency Quality Innovation and Growth Ricardian Economics
How Do We Use These Different Resources To Create Competitive Advantage?
Efficiency
Ricardian Economics
Quality
Qualitative Differences in Resources
Innovation and Growth
Penrose’s Theory of Firm Growth

8. How Do Resources Lead to Competitive Advantage?
Valuable
Does it create “value” for the customer?
Rare
Do other firms have similar resources?
Difficult to Imitate/Substitute
Unique Historical Conditions
Causal Ambiguity
Organization
Are you organized to take advantage of your resources?

25. Using Value Chain Analysis To Determine The Sources of Competitive Advantage
Beyond simply using a value chain analysis to “map out” the sequence of activities, we need to ask the following:
What is the cost structure of each of these activities?
How do we compare with other competitors in each of these areas?
What are our strengths and weaknesses?
Consider outsourcing weaknesses (e.g., Dell & Boeing)

27. Value Chain Analysis:
Outsourcing activities can have the unintended consequence of damaging the firm’s potential to evaluate continuously its key assumptions, learn, and create new capabilities and core competencies. Therefore, managers should verify that the firm does not outsource activities that stimulate the development of new capabilities and competencies.

28. Organization and Resources
Incentive and Reward Systems
Creation of “Knowledge”
“Gain-Sharing”
Organization Structure
Where “Knowledge” Is Located
Cross-functional Teams
Recruiting and Training Policies
Specificity of Knowledge
Organization Process
The Dynamics of Knowledge Creation

33. The Challenges of Resource-Based Strategy
What resources do we have?
Are they fully utilized?
How else could we utilize our resources?
What resources and capabilities are we going to need in the future?
How do we build those resources and capabilities?

34. Competitive Advantage Through Resources and Capabilities
Cost Advantage
Technology
Manufacturing
Organization and Culture
Differentiation Advantage
Marketing, Sales and Service
Brand Name Capital
Product Development Organization