Презентация на тему Assessing the Internal Environment of the Firm

others?
Endowment of strategic resources that are valuable, rare, costly

to imitate, and costly to substitute.
Determine the resources and capabilities that are likely sources of competitive advantage (internal and external focus)
Three key types of resources: Tangible, Intangible, and Organizational Capabilities

Central theme – competitive advantages are created and sustained through the bundling of several of these resources to unique combinations

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easy to identify
Financial – firm’s cash, accounts receivables
Physical –

company’s plant, equipment, and machinery
Technological
Organizational – company’s strategic planning process, employee development

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in unique routines and practices
Human – experience and capability

of employees, trust and collaboration
Innovation and creativity – technical and scientific expertise
Reputation – brand name, reputation with suppliers/customers
What do firms such as BP and Toyota do when their intangible resource – reputation was damaged due to scandals?

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that a firm employs to transform inputs into outputs
Enable

a firm to take full advantage of other resources it controls
Examples:
Outstanding customer service
Excellent product development capabilities
Ability to hire, motivate, and retain human capital
Marketing skill
Cooperative relationships

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in the wet shaving industry. This is an example

of their  A. Tangible resources B. Intangible resources C. Organizational capabilities D. Strong primary activities

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RBV:
Resource Heterogeneity:
different firms have different resources.
heterogeneity of

resources typically occurs as a result of ‘bundling’ seemingly homogeneous resources of a firm and create uncommon resources or capabilities.
Result: competitive advantage!
Resource Immobility:
it may be costly for firms without certain resources to acquire or develop them
Although most resources seem technically mobile, in many cases it may not be economically viable to acquire them

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of Resources
Is the resource valuable?
Enable a firm to formulate

and implement strategies that improve its efficiency or effectiveness
Is the resource rare?
Common strategies based on similar resources give no one firm an advantage
Competitive advantages are gained only from uncommon resources

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be imitated easily?
Physical uniqueness (a beautiful resort)
Path dependency (first

mover advantage)
Causal ambiguity
Social complexity (org. relationships & culture)

Are substitutes readily available?
Similar resource(s)
Strategic substitutes

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the world's most popular sports franchises, and its revenue

has soared on the strength of licensing deals. The team's shoddy on-field performance might not matter much as more big-name companies are chasing the sport's growing fan base.
Fresh off its worst season in more than two decades, Manchester United is in talks with Nike and some of the biggest names in sports apparel for a contract that could top $600 million.
Profit tripled last year, revenues up by 26%.

What are some of Man. U’s critical resources?

play in 2013-14? How has this affected the profitability

of the club? What does this tell you about the nature of the "game"? In fact, what kind of game is Manchester United playing?
Based on the article, what is the most precious resource of Manchester United? How is Manchester United trying to leverage this resource? How does Manchester United try to add value to this resource, besides -- or instead of -- just winning some soccer games?
How many of you are fans of Manchester United? Why does this team have a special brand? What does it take for a sports team to build up a global brand outside the local community?

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Nike, on July 2014, Man U reached a deal

with Adidas for £750m.

organization that uses value creating activities.
View the organization as

a sequential process of value-creating activities
Value is the amount that buyers are willing to pay for what a firm provides them
A firm is profitable when the value of its products or services exceeds the total costs involved in creating them
Creating value for buyers that exceeds the costs of production (i.e., margin) is a key driver of a firm’s competitive position.

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of the product or service, its sale and transfer

to the buyer, and its service after the sale.
inbound logistics
operations
outbound logistics
marketing and sales
service

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either add value by themselves or add value through

important relationships with both primary activities and other support activities
procurement
technology development
human resource management
general administration

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examine:  A. Employee training programs B. Baggage handling C. Criteria for lease versus purchase decisions D. The

effectiveness of its lobbying activities

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distributing inputs to the product
Location of distribution facilities
Material and

inventory control systems
Systems to reduce time to send “returns” to suppliers
Warehouse layout and designs
Toyota’s use of JIT system
Wal-mart’s Electronic Data Interchange system

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final product form
Efficient plant operations
Incorporation of appropriate process technology
Quality

production control systems
Efficient plant layout and workflow design

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distributing the product or service to buyers
Effective shipping processes

to provide quick delivery and minimize damages
Shipping of goods in large lot sizes to minimize transportation costs.
Efficient finished goods warehousing processes
Ex: Cambell Soup’s e-network continuous replenishment program

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products and services by end users and the inducements

used to get them to make purchases
Innovative approaches to promotion and advertising
Proper identification of customer segments and needs
Selection of most appropriate distribution channels
Effective pricing strategies

Q: Internet advertising vs. traditional ads?

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or maintain the value of the product
Quick response to

customer needs and emergencies
Quality of service personnel and ongoing training
Warranty and
guarantee policies

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the firm’s value chain
Procurement of raw material inputs
Development of

collaborative “win-win” relationships with suppliers
Analysis and selection of alternate sources of inputs to minimize dependence on one supplier

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recruiting, hiring, training, development, and compensation of all types

of personnel
Effective recruiting, development, and retention mechanisms for employees
Quality relations with trade unions
Reward and incentive programs to motivate all employees
Q: Should employee performance metrics be eliminated? Why? Why not?

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of activities and those embodied in processes and equipment

and the product itself
Effective R&D activities for process and product initiatives
Positive collaborative relationships between R&D and other departments
Excellent professional qualifications of personnel

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chain and not individual activities
Ability of top management to

anticipate and act on key environmental trends and events
Excellent relationships with diverse stakeholder groups
Effective use of information technology to integrate value-creating activities

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top titles
Warehousing
Server operations

Billing

Collections


Picking and shipment of top titles from

warehouse

Shipment of other titles from third- party distributors

Pricing
Promotions
Advertising
Product information and reviews
Affiliations with other websites

Returned items

Customer feedback

Financing, legal support, accounting

Recruiting, training, incentive system, employee feedback

Technology
Development

Firm
Infrastructure

Inbound
Logistics

Operations

Outbound
Logistics

Marketing
& Sales

After-Sales Service

Primary Activities

to perform activities
Find a better way to perform

the same activities

Shorter-term advantage (competitors catch up)

Longer-lasting advantage

delivery to the consumer
Choose an entirely direct distribution model

(rather than through retailers) and outsourced component manufacturing

IKEA

Dell

Source

Assemble

Deliver

Area of innovation

with industry norms
Comparison with key competitors
Stakeholder perspective
Employees
Customers
Owners

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or liquidity
Long-term solvency measures
Asset management (or turnover)
Profitability
Market value
Historical comparisons
Comparison

with industry norms
Comparison with key competitors

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