BST - Internal Analysis (6) Flashcards
Why do we do an internal analysis? what does it identify about the organisation?
Its strengths and weaknesses
What does CSF stand for?
Critical Success Factor
What are CSFs?
A small number of key goals that are vital to the success of an organisation. They are the product features that are valued the most by the customers and therefore where the organisation must excel to outperform the competition
Why does identifying the CSFs help the organisation to identify?
The resources and competences needed to exceed
What are the two types of resources?
Threshold and Unique
What are threshold resources?
Basic resources needed by all firms in the market
What are unique resources?
The resources which are better than those of the competition and difficult to replicate, this gives the firm a sustainable competitive advantage
What are the 9 M’s?
Men Machines Money Material Markets Make-up Management Methods MIS
What is the 9 M’s model used for?
To identify the resources which are available to the business and those resources that may need to be addressed to achieve the CSFs
What are core competences?
Critical activities and processes that enable the firm to meet the critical success factors (CSFs) and therefore achieve a sustainable competitive advantage
How does a business achieve a sustainable competitive advantage?
Achieve their CSFs
How do we assess the core competences of an organisation?
Kays core competences model
What is Kays core competences model?
It outlines three main sources of competences - Reputation, Competitive architecture and innovative ability.
What is competitive architecture in Kays CC model?
The network of relationships within the business. With employees, suppliers, customers and between collaborating businesses.
What is Value Chain Analysis?
It identifies the relationships between the company’s resources, activities and processes that link the business together and create a profit margin
Who made the value chain analysis?
Porter
The value in value chain analysis can also be referred to as what
The margin
How do you calculate profit margin?
Revenue - costs (net income) / revenue
What else does porters chain analysis consider that could be eliminated?
non-value adding activities that can be identified and eliminated
What is the first step to doing a value chain analysis?
Identifying the main generic strategy
What are the two types of generic strategy? (VCA)
Cost leadership (seeking to be the lowest cost producer in the industry) and Differentiation (quality) - producing products that the consumer is willing to pay more for
What are the two types of drivers for VCA?
Cost drivers and quality drivers.
What are the 5 primary activities in the VCA?
Inbound logistics, Operations, Outbound logistics, Marketing and sales and Service.
What are the 4 support activities in the VCA?
Procurement - the processes for acquiring the various resource inputs to the primary activities (not the resources themselves)
Technology development - All value chain activities have a tech content even if it just ‘know how’
HR management - recruiting, managing training rewarding etc
Infrastructure - systems of planning, finance, quality control, information management etc.
