1. Slide 3. 1 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Competences © Robert Jones 2010 and 2012 robert.jones@anglia.ac.uk http://www.cambridgemba.wordpress.com/strategy

2. Slide 3. 2 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 What is a competence ?

3. Slide 3. 3 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Competences How an organisation exploits its resources Efficiency and effectiveness of resources – How they are managed – Cooperation between people – Adaptability – Innovation – Customer and supplier relationships – Learning Johnson and Scholes (2005), Exploring Corporate Strategy

4. Slide 3. 4 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Resources Physical resources – Machines, buildings, production capacity Financial resources – Capital, cash, debtors/creditors, suppliers of money (shareholders, bankers etc) Human resources – Number and mix of people, skills and knowledge Intellectual capital – Patents, brands, business systems, customer databases, goodwill Johnson and Scholes (2005), Exploring Corporate Strategy

5. Slide 3. 5 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Value Chain Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved. Exhibit 3.6 Johnson and Scholes (2005), Exploring Corporate Strategy

6. Slide 3. 6 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 physical, financial, human and intellectual resources Competence http://etc.usf.edu/clipart/13100/13110/bundlesticks_13110_lg.gif

7. Slide 3. 7 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

8. Slide 3. 8 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 http://www.youtube.com/watch?v=hpUm_UQgid0

9. Slide 3. 9 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Value Chain Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved. Exhibit 3.6 A competence Johnson and Scholes (2005), Exploring Corporate Strategy © R Jones 2010, based on:-

10. Slide 3. 10 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Zara: IT for Fast Fashion by Andrew McAfee, Anders Sjoman, Vincent Dessain 23 pages. Publication date: Jun 25, 2004. ZARA by David J. Arnold 26 pages. Publication date: Mar 12, 2003. Zara: Managing Stores for Fast Fashion by Zeynep Ton, Elena Corsi, Vincent Dessain 19 pages. Publication date: Nov 23, 2009. Zara's Secret for Fast Fashion 2/21/2005 Spanish retailer Zara has hit on a formula for supply chain success that works. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. From Harvard Business Review. by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca

11. Slide 3. 11 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Some businesses achieve extraordinary profits compared with others in the same industry How?

12. Slide 3. 12 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

13. Slide 3. 13 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

14. Slide 3. 14 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

15. Slide 3. 15 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

16. Slide 3. 16 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Sources of Cost Efficiency Exhibit 3.3 Johnson and Scholes (2005), Exploring Corporate Strategy

17. Slide 3. 17 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 http://www.youtube.com/watch?v=oJCuYNvrE8g

18. Slide 3. 18 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Value Chain Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved. Exhibit 3.6 A competence © R Jones 2010, based on:-

19. Slide 3. 19 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Experience Curve Exhibit 3.4 Johnson and Scholes (2005), Exploring Corporate Strategy

20. Slide 3. 20 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

21. Slide 3. 21 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 What is Apples competence ?

22. Slide 3. 22 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

23. Slide 3. 23 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Value Network Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster Inc. © 1985, 1988 by Michael E. Porter. All rights reserved. Exhibit 3.7 Johnson and Scholes (2005), Exploring Corporate Strategy

24. Slide 3. 24 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 ARM plc Annual Report

25. Slide 3. 25 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Lee Smith, ARM Fellow Presentation to Cambridge UniversityEntrepreneurs, 9th February 2008

26. Slide 3. 26 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Lee Smith, ARM Fellow Presentation to Cambridge University Entrepreneurs, 9th February 2008

27. Slide 3. 27 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Strategic Capabilities and Competitive Advantage Exhibit 3.1 Johnson and Scholes (2005), Exploring Corporate Strategy

28. Slide 3. 28 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Capabilities for Sustainable Competitive Advantage Value Rarity Robustness Non-substitutability Dynamic capabilities Johnson and Scholes (2005), Exploring Corporate Strategy

29. Slide 3. 29 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

30. Slide 3. 30 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Strategic Capability- the terminology Exhibit 3.2 Johnson and Scholes (2005), Exploring Corporate Strategy

31. Slide 3. 31 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 http://www.youtube.com/user/honda?blend=1&ob=4 The Honda Channel

32. Slide 3. 32 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 What is Hondas competence ?

33. Slide 3. 33 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 The Value Network Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster Inc. © 1985, 1988 by Michael E. Porter. All rights reserved. Exhibit 3.7 Johnson and Scholes (2005), Exploring Corporate Strategy © R Jones 2010, based on:-

34. Slide 3. 34 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

35. Slide 3. 35 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

36. Slide 3. 36 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 What is Toyotas competence?

37. Slide 3. 37 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Toyota Production System Jidoka Manufacturing high-quality products

38. Slide 3. 38 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 http://www.ifm.eng.cam.ac.uk/dstools/process/pdca.html

39. Slide 3. 39 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Toyota Production System Just-in-Time Philosophy of complete elimination of waste

40. Slide 3. 40 Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005 Conclusion: What is a competence ?