Chapter 4 - Resource Audit Flashcards
Competences
Resources we possess, and how we deploy
Critical Success Factors (CSF)
Components of strategy where organisation must excel to outperform competition
4 sources of CSF
- Industry
- Company
- Wider environment
- Temperal (time)
* KPIs underpin CSF
Product Life Cycle
- Introduction
- Growth
- Maturity
- Decline
* want balance of products
Porters Value Chain
Secondary Activities
- Firm infrastructure - hierachy, centralised?
- HR management - recruitment, training, processes
- Technology development
- Procurement
Primary Activities
- Inbound logistics
- Operations
- Outbound logistics
- Marketing + Sales
- Service
Value Network
Set of inter-relationships necessary to create goods/services
Value Shop
Primary
- Problem finding
- Problem solving
- Choose solution
- Execution
- Control/Evaluation
* Secondary activities same as value chain
9 M’s Model
- Manpower
- Management
- Mangement information
- Make-up - culture
- Money
- Materials
- Machinery
- Methods - processes e.g. JIT, TQM
- Markets
Strategic Fit
Having the right reosurces to take advantage of opportunities
Manpower (9M’s)
- Skills/Experience/Qualifications
- Attitude/Motivation - theory X/Y
- Staff turnover
- Flexibility - terms of employment / Handy’s shamrock
Money (9M’s)
- Cash/Cashflows - ratios
- Bank facilities - overdraft / fees
- Credit rating
- Gearing
Management (9M’s)
Manpower +
- Future - foresight, forecatsing, trends, delphi, visioning, 3 real options
Machinery (9M’s)
- Age/obsolete?
- Business critical?
- Land/building - owned/leased?
- Location
- Technology
- Brand/Patent, reputation (intangibles)
Markets (9M’s)
- Spread/no. markets - risk management tool
- Growth
- Marketing - PR / Public image
Materials (9M’s)
- Quality
- Availability / Stock holding
- Supplier relationships / Leadtimes
- Cost - variances/obsolete?
Methods (9M’s)
- Processes - JIT/TQM
- Outsource
Make-up (9M’s)
- Centralisation
- Functional / Matrix
Strategic fit
Having right resources to take advantage of opportunities
Core competencies
Not easily imitated or obtained by competition
- provide competitive advantage
