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CHAPTER 5 Internal Scanning: Organizational Analysis

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Presentation on theme: "CHAPTER 5 Internal Scanning: Organizational Analysis"— Presentation transcript:

1 CHAPTER 5 Internal Scanning: Organizational Analysis
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 2006

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

4 VRIO Framework -- Value Rareness Imitability Organization
Core and Distinctive Competencies VRIO Framework -- Value Rareness Imitability Organization 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 2006

6 Continuum of Sustainability
Prentice Hall 2006

7 Durability -- Imitability --
Sustainability of Advantage Durability -- Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete Imitability -- Rate at which a firm’s underlying resources and capabilities can be duplicated by others Prentice Hall 2006

8 Core Competency can be imitated --
Sustainability of Advantage Core Competency can be imitated -- Transparency Transferability Replicability Prentice Hall 2006

9 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 2006

10 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 2006

11 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 2006

12 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 2006

13 Typical Value Chain for a Manufactured Product
Value-Chain Analysis Typical Value Chain for a Manufactured Product Prentice Hall 2006

14 Primary activities Support activities Corporate Value-Chain Analysis
Prentice Hall 2006

15 Corporation’s Value Chain
Prentice Hall 2006

16 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 2006

17 Basic Organizational Structures
Prentice Hall 2006

18 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 2006

19 Market Position & Segmentation Marketing Mix Product Life Cycle
Strategic Marketing Issues Market Position & Segmentation Marketing Mix Product Life Cycle Brand & Corporate Reputation Prentice Hall 2006

20 Financial leverage Capital budgeting Strategic Financial Issues
Prentice Hall 2006

21 Technological Competence Technology Transfer
Strategic Research & Development Issues R&D Intensity Technological Competence Technology Transfer Prentice Hall 2006

22 Technological Discontinuity
Prentice Hall 2006

23 Increasing use of teams Union relations Temporary workers
Strategic Human Resource Management Issues HRM – Increasing use of teams Union relations Temporary workers Quality of work life Human diversity Prentice Hall 2006

24 Internal Factor Analysis Summary Table
Prentice Hall 2006


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