1. Copyright © 2005 Pearson Education Canada Inc. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-1 Chapter 4 Internal Scanning: Organizational Analysis

2. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-2 Copyright © 2005 Pearson Education Canada Inc. Resource-Based Approach Resource:  An asset, competency, process, skill, or knowledge controlled by the organization.

3. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-3 Copyright © 2005 Pearson Education Canada Inc. Evaluating Key Resources VRIO Framework  Value: Does it provide competitive advantage?  Rareness: Do other competitors possess it?  Imitability: Is it costly for others to imitate?  Organization: Is the firm organized to exploit the resource?

4. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-4 Copyright © 2005 Pearson Education Canada Inc. Core Competencies Durability & Imitability of core competencies determined by:  Transparency  Transferability  Replicability

5. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-5 Copyright © 2005 Pearson Education Canada Inc.

6. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-6 Copyright © 2005 Pearson Education Canada Inc. Organizational Culture Defined:  Collection of beliefs, expectations, and values learned and shared by an organization’s members and transmitted from one generation of employees to another.

7. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-7 Copyright © 2005 Pearson Education Canada Inc. Strategic Financial Issues Financial Ratios:  i.e. Total debt to total assets. Capital Budgeting:  Analyzing and ranking possible investments in fixed assets.

8. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-8 Copyright © 2005 Pearson Education Canada Inc. Strategic R&D Issues R&D Intensity:  Spending on R&D as a percentage of sales revenue. Technological Competence:  Development and use of innovative technology. Technology Transfer:  Process of taking new technology from the lab to the marketplace.

9. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-9 Copyright © 2005 Pearson Education Canada Inc. Strategic HRM Issues Use of Teams Flexibility Quality of Worklife Human Diversity

10. Concepts in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 4-10 Copyright © 2005 Pearson Education Canada Inc. Strategic Information Systems Issues Automate back-office processes Automate individual tasks Enhance key business functions Develop competitive advantages