Week 4 Flashcards
External Analysis suggests:
Internal Analysis helps:
And when you match these?
What the firms needs to do
Firms determine what it can do
It helps determine strategic decision making.
Resources:
Capabilities:
Core Competencies:
Competitive Advantages:
-Whats organizations own
-Whats organizations can do
-What organization can do better than their competitors and add values to customers
-Converting core competencies into firm performance
Tangible Resources:
Intangible Resources:
Can be observed and quantified-Financial, organizational, physical
-Rooted deeply in the firm’s history, accumulated/evolved over time. (Superior capability and core competencies)
-Human knowledge, innovation, reputation
What two tools can help firms identify their core competencies?
VRIO & Value Chain Analysis
What is Resource-based theory:
Organizations that own “strategic resources” have
a competitive advantage over their competitors.
These competitive advantages can help the
organization enjoy strong profits.
A Resource is Strategic if if is:
Valuable (Aid in improving the organization’s effectiveness and
efficacy.)
Rare (Few, if any, competitors possess it)
Inimitable (Capabilities that other firms cannot easily develop)
Organized (Having the organizational systems, processes, and
structure to capitalize on the potential of resources and
capabilities)
The Logic of core Competencies and capabilities
All core competencies are capabilities but not all capabilities are core competencies
For a capability to be a core competence is must be valuable and are
For a core competency to be a competitive advantage, it must be inimitable and organized.
Value Chain Analysis:
Value Chain Activity:
Support function:
Allows firms to understand which part of its operations create value.
Tasks completed to produce/sell.distribute/service the product
Task to support the main activities.
Any of these can be core competencies:
5 main Value Chain Activities:
Inbound logistics: Get raw materials effeciently
Operations: Turn raw materials into products efficiently
Outbound logistics: Distribute the final product to customers
Marketing and Sales: Target customers and satisfy their needs
Service: Increase product value for customers
Support Activities:
Firm infrastructure: How the firm organized/led by executives
HRM: Activities related to managing human capital
Tech Management :Obtaining and managing information and knowledge in the
firm using technology
Procurement: negotiating getting raw materials
What is outsourcing?
If your bad an activity, send it to someone else to do. If you do it right, you benefit, if wrong you loose desire to inovation, moral, and maybe jobs.
I know what a SWOT Analysis is.
Yes you do.
