Ch 5 Internal Env Analysis Flashcards
Whats the process of internal analysis?
1 Resource Audit
2 Competencies (seperate activities , linking activities
3 Core Competencies (will create new opps, help outeperform)
4) Assessing balance (resources, competencies, SBU’s)
5) Id key issues (SWOT, CSF)
6) Understand key capability
- 1 Rigidiy (preventing change)
- 2 Comparison (historical, norms, benchmark)
Resource audit will id resources available to org and begin iding competencies by assessing strenght, quantity, nauture and extent unique and difficult to replicate. What are the two approaches
M Model
Manpower, money, mgmt, machinery, markets, mats, methods, MI, makeup (struct and culture)
Or 4 Headings
Physical resources, HR, Financial, Intangible
Competencies are resources combined what can they be.
1) Threshold - enable you to compete, no adv = “order of qualifiers”
2) Core = things difficult to emulate “order of winners’
Note core CAN become threhold over time, whats good today is not tomorrow.
What is a competence audit and how categorise ?
Similar to resource audit but looks at what competencies the org has and how well resources are being deployed to create them
Categorise as threshold and core via historical data, benchmarking, and industry norms (get specialist team set up to do so)
CSF’s what are they, considerations and issues with them
1) They are the limited number of areas which if good at ensure succcess. VIP areas the “must go right”
2) Consideration - should tie in with corp objectives
3) often vague so set KPI’s to overcome
What are sources of CSF’s
1) Industry the bus is in (e.g cars - compliance with polution reg)
2) Company itself and situation within industry (e.g competitive strategy / geography etc)
3) Wider environment
4) Temporary organisation factors e.g issues like liquiidty
What is the link between CSF and Competency
CSFS are what org NEEDs to be good at
Competencies are what org IS good at!
- Note they need to be closely aligned so regular analysis is required!
What are value drivers
Activities and features that enhanced percieved value of prod/service to customer and therefore create value for producers
E.g High street retailer - product mix/ conveniently located stores / knowledgable friendly staff
Porters Value Chain describe and draw 2) what is the chain used for
Primary and Secondary designed to create orgs margin take inputs and make outputs with greater value
Used to provide managers with deeper understanding of business
Id processes to add or take away value (eliminate destroyers)
what is a value system
linking value chains of suppliers and customers to org
What are the AD’s and Disads of Value chain
Good
framewod for cost and behaviours
makes clear multifaceted nature of company
id value destroyers
Bad
Not suitable for non manufacturing business (so value shop)
The value shop for professional services firms
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