Internal Scanning 1

Question 1

Organizational analysis- concerned with

Answer 1

identifying and developing an organization’s resources and competencies

Question 2

Internal strategic factors

Answer 2

Critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats.

Question 3

Resources

Answer 3

Physical assets: plant, equipment, location, etc …
Human assets: employees and their skills …
Organizational assets: culture, reputation etc …

Question 4

Capabilities (a corporation’s ability to exploit its resources)

Answer 4

Marketing capabilities
Manufacturing capabilities
HRM capabilities

Question 5

Competency

Answer 5

Cross-functional integration and coordination of capabilities

Question 6

Core competency (primary expertise)

Answer 6

Something that a corporation can do exceedingly well

Question 7

Distinctive competency

Answer 7

When core competition is superior of the competition

Question 8

Even though a distinctive competency is certainly considered to be a corporation’s key strength

Answer 8

a key strength may not always be a distinctive competency

Question 9

As competitors attempt to imitate other companies competencies;

Answer 9

what was once a distinctive competency becomes a minimum requirement to compete in the industry. Even though the competency may still be a core competency, and thus strength, it is no longer unique. It is no longer a distinctive competency.

Question 10

VRIO Framework

Answer 10

Value
Rareness
Imitability
Organization

Question 11

value

Answer 11

Does it provide customer value and competitive advantage?

Question 12

Rareness

Answer 12

Do other competitors possess it?

Question 13

Imitability

Answer 13

Is it costly for others to imitate?

Question 14

Organization

Answer 14

Is the firm organized to exploit the resource?

Question 15

5-Step Approach Strategy Analysis –

Using Resources to Gain Competitive Advantage

Answer 15

Identify and classify resources
Combine strengths into capabilities
Appraise profit potential of capabilities
Select a strategy that best exploits
Identify resource gaps invest in weaknesses

Question 16

How Can An Organization Gain Access to a Distinctive Competency - important

Answer 16

1. endowment
   (KeAssety patent; polaroid, Xerox…)
2. Acquired from someone else
   (P&G bought Tursil, distribution systems)
3. Shared with another business
   (Apple work with a design firm for the units)
4. Built and accumulated within the company
   (Honda Motors, small with high compression ratio)

Question 17

Exam question

Answer 17

difference between core competency and distinctive competency!
Ex: a restaurant said I make very good food at a reasonable price
What is the difference between Toyota and Ferrari?

Question 18

CLUSTERS

Answer 18

Provide access to 
employees,
suppliers,
specialized information,
complementary products,
ease of comparing with others,
informal information  …

Question 19

Sustainability of Advantage

Answer 19

Durability
Imitability
Explicit knowledge
Tacit knowledge

Question 20

Durability

Answer 20

The rate at which a firm’s underlying resources and capabilities depreciate or become obsolete

Question 21

Imitability

Answer 21

Rate at which a firm’s underlying resources and capabilities can be duplicated by others

Transparency
(ability to understand)
Transferability
(ability to gather resources and capabilities)
Replicability
(imitability)

Question 22

Explicit knowledge

Answer 22

knowledge that can be easily articulated and communicated

Question 23

Tacit knowledge

Answer 23

Is the knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation’s culture.
CAN BE BOTH ;
AN ADVANTAGE AND
A DİSADVANTAGE

Question 24

Resource-Based Approach to Organizational Analysis

Answer 24

Resources
Capabilities 
Competency
Core competency 
Distinctive competency
Durability
Imitability
Explicit knowledge – Tacit knowledge

Question 25

BUSINESS MODEL

Answer 25

Company’s method for making money in the current business environment.
Is a strategic design for how a company intends to profit from its strategies, work processes, and work activities.

Question 26

BUSINESS MODEL Focuses on two things:

Answer 26

Whether customers will value what the company is providing.

Whether the company can make any money doing that

Question 27

BUSINESS MODEL

Answer 27

A business model is a snapshot of the way a business is configured to create, deliver and capture value. Its decree is shareholder value maximization.

Question 28

BUSINESS MODEL vs STRATEGY

Answer 28

Business models describe how a company is structured and its methods for maximizing revenues and profits. The business model is independent of competitors and the current state of the market, which is where strategy comes in.

Question 29

BUSINESS MODEL vs STRATEGY 2

Important for exam

Answer 29

The strategy describes how the company will engage competitors, identify and segment customers, and respond to the actual market environment. Two companies employing the exact same business model may, nonetheless, see very different financial results based on their different business strategies.

Question 30

BUSINESS MODEL Includes

Answer 30

Who the company serves
What the company provides
How the company makes money
How the company differentiates and sustains competitive advantage
How the company provides its product/service

Question 31

Types of Models

Answer 31

Customer Solutions Model
Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model
Time Model
Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model

Question 32

company’s center of gravity

Answer 32

A company’s center of gravity is the part of the chain that is most important to the company and the point where its greatest expertise and capabilities lie – its core competencies.

(This does not mean that the center of gravity is where the company makes most of the profits)