The Internal Operation Environment of Business Flashcards
(40 cards)
These are the foundation for strategic actions and these bundles of resources generate competitive advantage that leads to wealth generation and profit.
Internal Management Resources
It defined as the evaluation in terms of respect, awareness and knowledge, and the emotional and affective reactions of the various stakeholders.
Internal Business Environment
It is the utilization of the bundle of heterogeneous resources, capabilities and core competencies that can be used to create an exclusive market position.
Strategic Positioning
The global standards for product and services create customer values that are measured by product performance characteristics and the attributes for which customers are willing to pay for.
Creating Customer Value
It is the source of the firm’s potential to earn the desired profit objective.
Creating Value
It is created when they buy the product at reasonable price and based on quality standards or high product differentiations.
Customer Value
It refers to the challenges to the implementation of strategic actions may appear to be easy in the surface. Deeply the strategic action must be the result of careful analysis of the business conditions and the competitor’s strategy.
The Challenge of Internal Analysis
These decisions are uncertain about the conditions of the general industry environment as it keep changing overtime.
Uncertainty
The universe of decision-making process is complex as the interrelated environment is shaping so rapidly.
Complexity
The structure of the organization is so designed that managers are tasked with specific duties and responsibilities. Managers are working closely with their responsibilities and would like to protect their own identity in the organization. While horizontal and vertical working relationships exist, managers could not avoid protecting their own personal interest.
Intra-Organizational Conflict
This refers to the firm’s cash flow assets that can be used
in the operation of the business.
Financial Resources
It refers to the organizational structure that plans, organizes, directs and controls the operation of the business.
Organizational Resources
These are physical assets that are used in the operation of the business. This refers to plant facilities, machinery and equipment and used to produce products.
Physical Resources
It refers to the technology such as system and procedures, patents, corporate trademarks, copyrights and trade secrets. This may also refer to new inventions and innovation undertaken by the company to improve its products and services to its clients.
Technological Resources
It is one of the most important assets that the company could depend on for competitive advantage. It refers to skills and knowledge base of the workers to see and direct the corporate activities towards the profit objective of the firm.
Human Resources
It is the capacity to bring in new idea and innovative strategies that would be necessary in the change process. It refers also to scientific innovations in terms of pollution control and wise use of material resources.
Innovation Resources
It refers to the reputation the firm has earned overtime with its customers and other stakeholders, it refers to the perceptions about product quality, durability and reliability.
Reputational Resources
These capabilities are the tangible and intangible resources that are purposely integrated to achieve the desired results.
The Firm’s Internal Capabilities
These are internal and external resources and capabilities that serve as the source of competitive advantage over rivals in the industry. It reflects the firm’s personality among its clients and stakeholders and emerged overtime through an organizational process of accumulating and learning on how to deploy its resources and capabilities.
Core Competencies / Internal Core Competencies
This is where the firm achieves a sustained competency when the competitors failed to duplicate the products or services that the firm produced or failed in entering the firm’s market niche.
The Criteria for Sustainable Advantage
It refers to the state of how the firm can exploit opportunities and neutralize threats in the external environment. It is also the creation of value among its customers and the development of loyalty and patronage by sustaining the products’ quality and innovative features.
Valuable Capabilities
Rare products are difficult to imitate. These are possessed by few (if any) by the competitors.
Rare Capabilities
Costly capabilities are corporate competencies that other firms cannot easily develop. Huge investment in capital base could be one reason for other competitors to enter the venture if they are not certain on their return of investments.
Imitation Cost Capabilities
It refers to the historical development of the firm that comes at the right time and place in history.
Unique Historical Condition
