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Internal Scanning: Organizational Analysis

The document discusses frameworks for analyzing a firm's internal strategic factors such as resources, capabilities, competencies, and core competencies using approaches like the VRIO framework and a 5-step strategy analysis approach. It also discusses analyzing organizational structures, culture, marketing, financials, R&D, technology, human resources, and developing an internal factor analysis summary table to identify strengths and weaknesses.

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144 views24 pages

Internal Scanning: Organizational Analysis

The document discusses frameworks for analyzing a firm's internal strategic factors such as resources, capabilities, competencies, and core competencies using approaches like the VRIO framework and a 5-step strategy analysis approach. It also discusses analyzing organizational structures, culture, marketing, financials, R&D, technology, human resources, and developing an internal factor analysis summary table to identify strengths and weaknesses.

Uploaded by

pace
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 5

Internal Scanning: Organizational


Analysis

5-1
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

5-2
Resource-Based Approach to Organizational Analysis

•Resources

•Capabilities

•Competency

•Core competency

•Distinctive competency

5-3
Core and Distinctive Competencies

VRIO Framework --

–Value

–Rareness

–Imitability

–Organization

5-4
Resource-Based Approach to Organizational Analysis

5-Step Approach Strategy Analysis --

1. Identify and classify resources

2. Combine strengths into capabilities

3. Appraise profit potential of capabilities

4. Select strategy that best exploits

5. Identify resource gaps invest in weaknesses

5-5
Continuum of Sustainability

5-6
Sustainability of Advantage

Durability --

– Rate at which a firm’s underlying resources


and capabilities depreciate or become
obsolete

Imitability --

– Rate at which a firm’s underlying resources


and capabilities can be duplicated by others

5-7
Sustainability of Advantage

Core Competency can be imitated --

–Transparency

–Transferability

–Replicability

5-8
Business Models

Company’s method for making money in


the current business environment.

5-9
Business Models

Types of Models --

–Customer Solutions Model


–Profit Pyramid Model
–Multi-Component System/Installed Base Model
–Advertising Model
–Switchboard Model

5-10
Business Models

Types of Models --

–Time Model
–Efficiency Model
–Blockbuster Model
–Profit Multiplier Model
–Entrepreneurial Model
–De Facto Standard Model

5-11
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

5-12
Value-Chain Analysis

Typical Value Chain for


a Manufactured Product

5-13
Corporate Value-Chain Analysis

•Primary activities

•Support activities

5-14
Corporation’s Value Chain

5-15
Scanning Functional Resources & Capabilities

Basic Organizational Structures --

–Simple structure

–Functional structure

–Divisional structure

–Strategic business units (SBU’s)

–Conglomerate structure

5-16
Basic Organizational Structures

5-17
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

5-18
Strategic Marketing Issues

–Market Position & Segmentation

–Marketing Mix

–Product Life Cycle

–Brand & Corporate Reputation

5-19
Strategic Financial Issues

–Financial leverage

–Capital budgeting

5-20
Strategic Research & Development Issues

–R&D Intensity

–Technological Competence

–Technology Transfer

5-21
Technological Discontinuity

5-22
Strategic Human Resource Management Issues

HRM –

–Increasing use of teams

–Union relations

–Temporary workers

–Quality of work life

–Human diversity
5-23
Internal Factor Analysis Summary Table

5-24

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