6. Resources & value creation in the org ecosystem

Question 1

What is resource audit?

Answer 1

Assess relative strength of the resource base.

Quantity of resources available.

Nature of the resources.

Extent to which resources are unique and difficult to mitigate.

Question 2

M model?

Answer 2

Manpower
Money
Management
Machinery
Markets
Materials
Methods
Management information
Make-up

Not just owned but what can be accesses e.g through networks.

Question 3

Key types of competence?

Answer 3

Corr competences (difficult for competitors to emulate, basis for competitive advantage)

Threshold competences (enables to compete in the market, no competitive advantage)

Question 4

Competence audit

Answer 4

What competences org has & how erll resources are deployed to create them

Competence categorisation: core or threshold

Question 5

Critical success factors

Answer 5

Vital areas where things must go right.

Business must outperform its competitors.

Should tie into corporate objectives.

Question 6

Sources of critical success factors?

Answer 6

Industry in which the business is in.

Company’s situation in the industry (competitive str & geographical location).

External environment (e.g economy & political factors).

Temporary org factors (e.g liquidity problems).

Question 7

Porter’s value chain

Answer 7

Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing & sales
Service

Support activities
Infrastructure
Human resource management
Technology development
Procurement

Question 8

Value system

Answer 8

Linking value chains of the eider org ecosystem (suppliers & customers)

Question 9

Benefits of Porter’s value chain

Answer 9

Generic framework to analyze cost behaviour and existing/potential sources of differentiation

Identification of non-value adding activities

Relationship between activities & understanding of org comp. postition

Supports multidivisional orgs to find synergies between SBUs

Question 10

Critisism of Porter’s value chain

Answer 10

More suited for manufacturing than service companies

Quantitative analysis. Recalibrating accounting system to allocate costs to activities is time consuming

Question 11

Value shop

Answer 11

Alternative value chain for professiobal services firm

Workshop which mobilises resources to solve specific problems

Same support activities as in Porter’s value chain but different primary activities:

Problem finding & acquisition

Problem solving

Choosing among solutions

Execution & control/evaluation