1. Sources of Organizational Capabilities
I. Strategy  O.B. Linkage
5-Forces Framework
Resources-Based View
Sources of Organizational Capabilities
Organizational Architecture
II. Smart-Talk Trap
III. Teams
Finalize Rosters
Prepare for Presentations
HBO

2. Thinking about Strategy
What is Strategy?
What is Strategic Management?
What do we Mean by Strategic Behavior?
What are the Objectives of Strategy?
HBO

3. Core Focus of Strategy Determinants of Competitive Advantage
Understanding & Explaining
Abnormal Performance
Persistent Profitability
HBO

4. Porter’s 5-Forces Potential Entrants Industry Competitors
Threat of
New Entrants
Industry
Competitors
Rivalry Among
Existing Firms
Bargaining
Power
Bargaining
Power
Suppliers
Buyers
Threat of Substitute
Products or Services
Substitutes
HBO

5. Determinants of Competitive Advantage
Industry Structure
Market Power
What’s Missing?
HBO

6. Resource-Based View Looking Inside Industry  Firm
Market Power  Uniqueness
HBO

7. Core Competence Prahalad & Hamel (1990)
Portfolio of Businesses 
Portfolio of Competencies
Defined as: what a company is really good at
Identified by:
Access to wide variety of markets
Significant contribution to perceived customer benefit
Difficult for competitors to imitate
What’s missing?
HBO

8. V.R.I.O Framework Barney (1995)
Valuable
Rare
Inimitable
Organization
HBO

9. V.R.I.O Framework Barney (1995)
Valuable
Competitive Parity
HBO

10. V.R.I.O Framework Barney (1995)
Valuable
Competitive Parity
Rare
Competitive Advantage
HBO

11. V.R.I.O Framework Barney (1995)
Valuable
Competitive Parity
Rare
Competitive Advantage
Inimitable
Sustainable Competitive Advantage
HBO

12. V.R.I.O Framework Barney (1995)
Valuable
Competitive Parity
Rare
Competitive Advantage
Inimitable
Sustainable Competitive Advantage
Organization
Realized Competitive Advantage
HBO

13. Determinants of Competitive Advantage
Industry Structure
Resources & Capabilities
What’s missing?
HBO

14. Organizational Capabilities
Capabilities: set of organizing processes and principles a firm uses to deploy its resources to achieve strategic objectives.
Internal Sources
Experience-Based Learning
Organizational Architecture
(complementary resource)
External Sources
Vicarious Learning
HBO

15. Organizational Architecture
Informal
Organization
Output
System
Unit
Individual
Input
Environment
Resources
History
Formal
Organization
Strategy
Work
People
HBO

16. Smart-Talk Trap Knowing-Doing Gap Closing the Gap
1. Leaders who know & do work
2. Plain language, simple concepts
3. Asking how, not just why
4. Mechanisms to close the loop
5. Experience is the best teacher
HBO

17. For Next Class . . . Complete Steps 1 & 2 of Group Ranking Task Select
Group Presentation Topic
HBO