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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
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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
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Distinctive competency
Resource-Based Approach to Organizational Analysis Resources Capabilities Competency Core competency Distinctive competency Prentice Hall, Inc. © 2006 Prentice Hall 2006
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VRIO Framework -- Value Rareness Imitability Organization
Core and Distinctive Competencies VRIO Framework -- Value Rareness Imitability Organization Prentice Hall, Inc. © 2006 Prentice Hall 2006
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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
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Continuum of Sustainability
Prentice Hall, Inc. © 2006 Prentice Hall 2006
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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
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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
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Core Competency can be imitated --
Sustainability of Advantage Core Competency can be imitated -- Transparency Transferability Replicability Prentice Hall, Inc. © 2006 Prentice Hall 2006
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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
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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
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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
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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
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Typical Value Chain for a Manufactured Product
Value-Chain Analysis Typical Value Chain for a Manufactured Product Prentice Hall, Inc. © 2006 Prentice Hall 2006
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Primary activities Support activities Corporate Value-Chain Analysis
Prentice Hall, Inc. © 2006 Prentice Hall 2006
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Corporation’s Value Chain
Prentice Hall, Inc. © 2006 Prentice Hall 2006
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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
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Basic Organizational Structures
Prentice Hall, Inc. © 2006 Prentice Hall 2006
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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
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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
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