Chapter 6: Resources and value creation within the organisational ecosystem

Question 1

What steps are typically involved with the process of internal analysis?

Answer 1

Resource audit
Competencies
Core compentencies
Assessing balance
Identify key issues
Understanding strategic capability

Question 2

What is the resource audit?

Answer 2

Identifies the resources that are available to an organisation and seeks to start the process of identifying competencies

Question 3

What factors does the M’s model suggest that the items in a position audit can be categorised into?

Answer 3

Manpower (human resources)
Money
Management
Machinery
Markets
Materials
Methods
Management Information
Make-up

Question 4

What four headings can resources be grouped into?

Answer 4

Physical or operational
Human
Financial
Intangibles

Question 5

What is a competence?

Answer 5

A group of abilities, resources or skills that enable the organisation to act effectively

Question 6

What are the two types of competences?

Answer 6

Core
Threshold

Question 7

What are core competences?

Answer 7

Things that you are able to do that are difficult for your competitors to emulate

Question 8

What are thresholf competences?

Answer 8

Things that you do well that simply enable you to compete in the market

Question 9

Over time what will the core competences become threshold as?

Answer 9

Cultures adjust and expectations develop
Customers and consumers become more sophisticated in terms of their needs and expectations
Competitors imitate our core competences

Question 10

What does a competence audit involve?

Answer 10

Analysis of what competences the organisation has, as well as how well resources are being deployed to create them
Categorisation of competences as core or threshold

Question 11

What are critical success factors?

Answer 11

Limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the business

Question 12

What is the difference between CSFs and competences?

Answer 12

CSFs are what the organisation needs to be good at in order to compete in the market
Competences are what the organisation is good at

Question 13

What are value drivers?

Answer 13

Activities or features that enhance the perceived value of a product or service by customers and which therefore create value for the producer.

Question 14

What is one of the main models that can be used to indenify value drivers of an organisation?

Answer 14

Porter’s value chain

Question 15

What are the primary resources in Porter’s value chain?

Answer 15

Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service

Question 16

What are the support activities in Porter’s value chain?

Answer 16

Infrastructure
HR management
Technology development
Procurement

Question 17

What can the value chain be used for?

Answer 17

Give managers a deeper understanding of precisely what their organisation does
Identify the key processes within the business that add value to the end customer
Identify the processes that do not add value to the customer

Question 18

By linking the value chains how does it add value?

Answer 18

Enhancing the supply
Controlling the retail process
Linking it all together to give advantage