1. CHAPTER 5 Internal Scanning: Organizational Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY 10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Prentice Hall, Inc. © 2006
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
Prentice Hall, Inc. © 2006
Prentice Hall 2006

3. Distinctive competency
Resource-Based Approach to Organizational Analysis
Resources
Capabilities
Competency
Core competency
Distinctive competency
Prentice Hall, Inc. © 2006
Prentice Hall 2006

4. VRIO Framework -- Value Rareness Imitability Organization
Core and Distinctive Competencies
VRIO Framework --
Value
Rareness
Imitability
Organization
Prentice Hall, Inc. © 2006
Prentice Hall 2006

5. 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
Prentice Hall, Inc. © 2006
Prentice Hall 2006

6. Continuum of Sustainability
Prentice Hall, Inc. © 2006
Prentice Hall 2006

7. Sustainability of Advantage
Durability --
Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete
Prentice Hall, Inc. © 2006
Prentice Hall 2006

8. Sustainability of Advantage
Imitability --
Rate at which a firm’s underlying resources and capabilities can be duplicated by others
Prentice Hall, Inc. © 2006
Prentice Hall 2006

9. Core Competency can be imitated --
Sustainability of Advantage
Core Competency can be imitated --
Transparency
Transferability
Replicability
Prentice Hall, Inc. © 2006
Prentice Hall 2006

10. Company’s method for making money in the current business environment.
Business Models
Company’s method for making money in the current business environment.
Prentice Hall, Inc. © 2006
Prentice Hall 2006

11. Types of Models -- Customer Solutions Model Profit Pyramid Model
Business Models
Types of Models --
Customer Solutions Model
Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model
Prentice Hall, Inc. © 2006
Prentice Hall 2006

12. 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
Prentice Hall, Inc. © 2006
Prentice Hall 2006

13. 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
Prentice Hall, Inc. © 2006
Prentice Hall 2006

14. Typical Value Chain for a Manufactured Product
Value-Chain Analysis
Typical Value Chain for a Manufactured Product
Prentice Hall, Inc. © 2006
Prentice Hall 2006

15. Primary activities Support activities Corporate Value-Chain Analysis
Prentice Hall, Inc. © 2006
Prentice Hall 2006

16. Corporation’s Value Chain
Prentice Hall, Inc. © 2006
Prentice Hall 2006

17. Basic Organizational Structures --
Scanning Functional Resources & Capabilities
Basic Organizational Structures --
Simple structure
Functional structure
Divisional structure
Strategic business units (SBU’s)
Conglomerate structure
Prentice Hall, Inc. © 2006
Prentice Hall 2006

18. Basic Organizational Structures
Prentice Hall, Inc. © 2006
Prentice Hall 2006

19. 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
Prentice Hall, Inc. © 2006
Prentice Hall 2006

20. Market Position & Segmentation Marketing Mix Product Life Cycle
Strategic Marketing Issues
Market Position & Segmentation
Marketing Mix
Product Life Cycle
Brand & Corporate Reputation
Prentice Hall, Inc. © 2006
Prentice Hall 2006