final presentation on internal analysis

8/9/2019 Final Presentation On Internal Analysis

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NTERNALORGANIZATIONActivities ,Resources and Capab


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ROUP MEMBERS wapna Rao aif Khan ahir Sheikh bdul Mudasser halid Khan


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OUTCOME OF EXTERNAL ENVIRONMEN

OpportuOpportu

ThTh


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OUTCOME OF INTERNAL ENVIRONMEN

Unique resoUnique reso

capabilitiescapabilitiescompetencompeten


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UTCOMES FROM EXTERNAL AND INTERNALNVIRONMENTAL ANALYSES

ExamineOpportunities andThreats

Examine ResourcesCapabilities, andCompetencies.


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atching what a an Do with whatight do llowsirm to develop,ision Mission aelect and implestrategies


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THE CONTEXT OF INTERNALANALYSIS

Global EconomyGlobal Mind-Set

Global Competitiveness


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CREATING VALUEBy exploiting their core competencies or competitive

advantages, firms create value.

Value is measured by:

Product performance characteristics

Product attributes for which customers are willipay

Firms create value by innovatively bundling and leveragtheir resources and capabilities.

Superior value Above-average returns


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CREATING VALUE


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OMPETITIVE ADVANTAGEFirms achieve strategic competitiveness and earabove-average returns when their corecompetencies are effectively

AcquiredBundledLeveraged

Over time, the benefits of any value-creatingstrategy can be duplicated by competitors.


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HE CHALLENGE OF INTERNAL ANALYSISStrategic decisions in terms of the firms resources, caand core competencies:

Are non-routine.

Have ethical implications.

Significantly influence the firms ability to earnaverage returns.


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(HE CHALLENGE OF INTERNAL ANALYSIS CTo develop and use core competencies, managers must have:

Courage

Self-confidence

Integrity

The capacity to deal with uncertainty and complexity

A willingness to hold people (and themselves) accofor their work


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ONDITIONS AFFECTING MANAGERIAL DECIS, ,BOUT RESOURCES CAPABILITIES AND CORCOMPETENCIES


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OMPONENTS OF INTERNAL ANALYSIS LOMPETITIVE ADVANTAGE ANDCOMPET


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RESOURCES Are a firms assets, including people and the v

brand name. Represent inputs into a firms production proc

as: Capital equipment Skills of employees Brand names Financial resources Talented managers


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YPES OF RESOURCES angible

resources Financialresources

Organizational

resources

Physical

resources Technologica

lresources

- Intangible

resourcesHum

res

Innores

Repures


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ANGIBLE RESOURCES inancial Resources he firm s borrowing c he firm s ability tonternal funds rganizational Resources The firm s formaeporting structure nd its formal plann,ontrolling nd coordinating syste hysical Resources ophistication and locfirm s lant and equipment ccess to raw material echnological Resources tock of technolog,s patents - , rade marks copyrightsrade secrets


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NTANGIBLE RESOURCES uman Resources Knowledge Trust anagerial capabilities rganizational routines nnovation Resources deas cientific capabilities apacity to innovate

eputational Resources eputation with custome rand name erceptions of product,urability and reliabi eputation with supplie , or efficient effectiv,upportive and utually beneficialnteractions and relationships


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CAPABILITIESRepresent the capacity to deploy resource

been purposely integrated to achieve a dstate

Emerge over time through complex interaamong tangible and intangible resources

Often are based on developing, carrying aexchanging information and knowledge tfirms human capital


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CAPABILITIES

The foundation of many capabilitieThe unique skills and knowle

firms employeesThe functional expertise of th

employees

Capabilities are often developed infunctional areas or as part of a funarea


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DISTRIBUTIONEffective use of logistic management tec


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MANAGEMENT Ability to Envision the Future of Soft


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ANAGEMENT INFORMATION SYSTEM Effective and efficient control of inventorie

- -point of purchase data collection method


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MARKETING Effective promotion of

Brand name productsEffective customer ser


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MANUFACTURING Design and production skills yielding reliabl


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ESEARCH AND DEVELOPMENT ,Motivating empowering and retaining e


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CORE COMPETENCIES

Resources and capabilities that are the sources of a

firms competitive advantage

Distinguish a companycompetitively and reflectits personality.

Emerge over time throughan organizationalprocess of accumulatingand learning how todeploy differentresources andcapabilities.


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ORE COMPETActivities that a firm

performs especially wellcompared to competitors

Activities through which the

firm adds unique value toits goods or services overa long period of time


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our Criteria of Sustainableompetitive Advantage alue Chain Analysis

ISCOVERING CORE COMPETENCIES


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Valuable

Rare

ostly to imitate

on substitutable

OUR CRITERIA OF SUSTAINABOMPETITIVE ADVANTAGE

ValualuRareare ostostimitmit ononsubsubs

our Cour CustustAdvdv

Outcomes from Combinations of the Criteria for


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Outcomes from Combinations of the Criteria forSustainable Competitive Advantage


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VALUE CHAIN ANALYSIS

Allows the firm to understand the parts of its opecreate value and those that do not.

A template that firms use to:

Understand their cost position.

Identify multiple means that might be usedfacilitate implementation of a chosen bustrategy.


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Value Chain

Shows how a product moves from the raw-material final customer.

To be a source of competitive advantage, a resource omust allow the firm:

To perform an activity in a manner that is superior tcompetitors perform it, or

To perform a value-creating activity that competitorcomplete

VALUE CHAIN ANALYSIS


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The BasicValue Chain


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OUTSOURCING -he purchase of a value creating activit

n external supplier Few organizations possess the resources and carequired to achieve competitive superiority

primary and support activities

y forming and emphasizing fewer capabil A firm can concentrate on those areas in whichcreate value

Specialty suppliers can perform outsourced capmore efficiently


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UTSOURCING DECISIONSA firm may outsource allA firm may outsource allor only part of one oror only part of one ormore primary and/ormore primary and/orsupport activities.support activities.

Outsourcedactivity


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TRATEGIC RATIONALES FOR OUTSOURC

mprove business focus -rovide access to world classcapabilities -ccelerate business re engineerinbenefits haring risks rees resources for other purpose


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OINTS TO BE NOTED ever take for granted that core compete

ill continue to provide a source of.ompetitive advantage ll core competencies have the potential.ecome core rigidities ore rigidities are former core competen

hat now generate inertia and stifle.nnovation etermining what the firm can do throughontinuous and effective analyses of internal environment increases the lik- .f long term competitive success


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CONCLUSION etermining what the firm c

hrough continuouffective analyses onternal environment inche likelihood of longompetitive su


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HE END

final presentation on internal analysis

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