Chapter 6- Internal Analysis Flashcards
Swot Analysis
Acronym for the internal strengths, weakness, of a firm and the environmental opportunities and Threats facing the firm
Benchmarking
Comparing the way our company performs a specific activity with a competitor or other company doing the same thing
Core competence
A capability or a skill that a firm emphasizes and excels in doing while in pursuit of its overall mission
Distinctive competencies- Apple co pulled resources and other software and made it their own
Toyotas pursuit of quality
Wendy’s- emphasis on providing fresh meat daily
Unique to the firm and arguably distinctive
Resource-based view
A method of analyzing and identifying a firms strategic advantages based on examining it’s distinct combination of asset skills and capabilities and intangibles as an organization
RBVs underlying premise
Firms differ in fundamental ways because each firm possesses a unique bundle of resources
Intangible and tangible assets and organizational capabilities
What are the three basic resources
Tangible assets intangible assets and organizational capabilities
Tangible asset
Found on the firms balance sheet Raw materials financial resources real estate and computers
Intangible assets
Brand names company reputation morale and technological knowledge
Organizational capabilities
Not inputs rather they are skills
Used to transform inputs into outputs
Coming to each of these diverse settings were insightful managers and business leaders who base their firms pursuit of market opportunities not only on the existence of external opportunities but also on the assessment of the firms competitive advantages and disadvantages
Sound realistic awareness and appreciation of their firms internally generated advantages
Reliance on past experiences
Management myopia
Understand what management myopia is?
Tendency to accept the status quo and disregard signals that change is needed
This chapter focuses on how managers identify key resources and capabilities around which to build successful strategies
Managers often do this subjectively based on intuition and gut feel
John W Henry
Other strategists used subjective assessment that the Red Sox would fail
Henry used systematic global futures market approach.
Red sSox won the World Series
SWOT is an acronym for the internal strengths and weaknesses of a firm, and the environmental opportunities and threats facing that firm.
SWOT analysis
Understand the different approaches and frameworks for conducting internal analysis
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SWOT Logical framework. Asks questions like how well is current strategy working Continued use is found in simplicity
Value chain analysis views firm as a chain or sequential process of value creating activities.
Resource based view (RBV) disciplined approach to internal analysis
What is a major favorable situation in a firms environment
Key trends
Identification of previously overlooked market segment
Opportunity
Major unfavorable situation in a firms environment
Key impediments to the firms current or desired position
Threat
Arise from the resources and competencies in meeting the needs of the customers it serves
Resources or capability controlled by or available to a firm
Strengths
Limitation or deficiency and one or more of the firms resources and capabilities relative to its competitors create a disadvantage in effect of the meeting customer needs
Weakness
Strengths
Sizable miniature storage expertise
User friendly engineering skill
Reputation and image with youthful consumers
Brand name
Web savvy organization and people
Limitations of SWOT analysis
Overemphasize internal strengths and downplay external threats
Characteristics that make resources difficult to imitate. In the RBV context these are physically unique resources path dependent resources casual ambiguity and economic deterrence
Isolating mechanisms
What are for guidelines of RBV view
Is the resource or skill critical to feeling a customers need better than that of a firms competitors
Is the resource scares is it in short supply or not easily substituted or imitated
Who actually gets to profit created by a resource. Appropriability
Durability how rapidly with the resource depreciate
And internal analysis technique where in strategic examine customer needs company offerings and competitors offerings to more clearly articulate what their company’s competitive advantage is and how it differs from those of competitors did
Three circle analysis
The concept of describes the product sales profit ability and competencies that her key drivers of the success of that product as it moves through a sequence of stages from developments introduction to growth journey to Klein and eventual removal from the market
Product lifecycle