UNIT III - Internal Analysis Flashcards
1
Q
a strategic tool that assesses an organization’s internal capabilities, resources, competencies and activities.
A
Internal analysis
2
Q
Why Conduct an Internal Analysis?
A
Identifying Core Competencies
Building and Sustaining Competitive Advantage
Effective Resource Allocation
3
Q
a comprehensive assessment of an organization’s internal resources, capabilities, and competencies.
A
Internal Analysis
4
Q
Why the need to conduct an Internal Analysis?
A
- Identifying core competencies.
- Helps in building and sustaining a competitive advantage by leveraging internal strengths;
- Uncover weaknesses and effectively manage weaknesses;
- Effective allocation of resources which ensures that resources are utilized optimally to achieve organizational objectives.
- It equips the organization to adapt to changes in the business environment.
5
Q
unique capabilities and strengths that set an organization apart from its competitors and enable it to create a competitive advantage (collective knowledge, skills, technologies, and resources)
A
Core competencies
6
Q
Competitive Advantage (Core Competencies)
A
collective knowledge
skills
technologies
resources
7
Q
Characteristics of Core Competencies
A
Unique Value Proposition
Difficult to Imitate
Source of Competitive Advantage
8
Q
Frameworks in Assessing the Internal Environment of an Organization
A
SW Analysis
VC Analysis
RBV
9
Q
Two steps in conducting SW Analysis
A
- Identification of Strategic Internal Factors
- Evaluation of Internal Strategic Factors
10
Q
refer to the organization’s core capabilities, competencies and unique characteristics that either contribute to its success or present challenges that need to be addressed.
A
Strategic internal factors
11
Q
refers to comprehensive internal analysis to assess key areas of the organization.
A
Evaluation of Internal Strategic Factors
12
Q
Strategic Internal Factors: Potential strengths and weaknesses
A
- Marketing
- Human Resources
- Operations
- Financial
- Organization and Management
13
Q
Strategic Internal Factors: Potential Strengths and Weaknesses under Marketing
A
Brand image
Quality of products
Product line
Marketing research
Product image/Corporate Reputation
Marketing communication
14
Q
Apple’s iconic brand image is innovation and premium quality.
A
Brand image
15
Q
Toyota’s reputation for producing high-quality, reliable automobiles.
A
Quality of products
16
Q
Samsung’s extensive product line ( smartphones, TVs, and home appliances)
A
Product line
17
Q
Ability to gather needed information about markets
A
Marketing research
18
Q
Strategic Internal Factors: Potential Strengths and Weaknesses under Finance and Accounting
A
Ability to raise short-term/long-term capital
Cost of capital relative to industry and competitors Relations with owners, investors, and stockholders Cost of entry and barriers to entry
Effective cost control
Efficient and effective accounting system
19
Q
How do strategists evaluate key internal factors as strengths or weaknesses?
A
- Comparison with Competitors
- Comparison with Performance
- Stages in Product Life Cycle(PLC)
- Success Factors in the Industry
20
Q
_______ in terms of marketing skills, financial resources, operating facilities and location, technical expertise, brand image, levels of integration, and managerial talent.
A
Comparison with Competitors
21
Q
Involves utilizing the firm’s historical experience as a benchmark for evaluating internal factors.
A
Comparison with Performance
22
Q
Recognizing the stage where a product fall within
the PLC. Different stages may demand varying strategic considerations.
A
Stages in Product Life Cycle(PLC)
23
Q
Employing industry-level analysis to evaluate a firm’s potential for success based on prevalent success factors within the industry.
A
Success Factors in the Industry
24
Q
views the organizations as a sequential process of value-creating activities that provide building blocks of competitive advantage.
A
Value-chain analysis
25
the amount that buyers are willing to pay for what a firm provides
Value
26
it is measured by total revenue
Value
27
a reflection of the price a firm’s product commands and the quantity it can sell.
Value
28
contribute directly to the physical creation of the product or service, its sale and transfer to the buyer, and its services after the sale.
Primary Activities
29
Primary Activities
Inbound Logistics
Operations
Outbound Logistics
Marketing and Sales
Service
30
is associated with receiving, storing, and distributing inputs to the product.
Inbound Logistics
31
It includes material handling, warehousing, inventory control, vehicle scheduling, and return to suppliers.
Inbound Logistics
32
include all activities associated with transforming inputs into the final product form
Operations
33
it includes machining, packaging, assembly, testing, printing, and facility operations.
Operations
34
are associated with collecting, storing, and distributing the product or service to buyers.
Outbound Logistics
35
They include finished goods, warehousing, material handling, delivery vehicle operation, order processing, and scheduling.
Outbound Logistics
36
is associated with purchases of products and services by end-users and the inducements used to get them to make purchases.
Marketing and Sales
37
They include advertising, promotion, salesforce, quoting, channel selection, channel relations, and pricing.
Marketing and Sales
38
It includes all activities associated with providing service to enhance or maintain the value of the product
Service
39
It includes installation, repair, training, parts supply and product adjustment.
Service
40
Some Factors to Consider in Assessing a Firm’s Primary Activities.
Location of distribution facilities to minimize shipping times.
Excellent material and inventory control systems. Warehouse layout and designs to increase efficiency of operations for incoming materials.
Inbound Logistics
41
refers to the processes related to receiving, storing, and distributing inputs internally.
Inbound Logistics
42
Just-in-time (JIT) inventory system of Toyota to achieve efficient inbound logistics. Parts arrive at the assembly plants only hours before they are needed.
Inbound Logistics
43
are the activities that transform inputs into outputs/finished products (e.g
adoption of state-of-the-art facilities).
Operations
44
is associated with activities with collecting, storing, and distributing the product or service to buyers.
Outbound Logistics
45
Distribution – Wilcon Depot, Ace Hardware, IKEA, Handyman), material handling, delivery operation, order processing, and scheduling.
Outbound Logistics
46
The value chain concept is useful for identifying areas where a business can ____, _____, or gain a ____.
create value
reduce costs
competitive advantage
47
The goal is to identify _____ at each stage of the chain and how the company can optimize or differentiate its activities to gain a competitive advantage.
where value is created
48
provide the necessary support to enhance the effectiveness and efficiency of the primary activities.
Support activities
49
Support Activities
Procurement
Technology Development
Human Resource Management
Infrastructure
50
Involves the acquisition of inputs or resources necessary for the primary activities.
Procurement
51
Encompasses the R&D, technology, and product and process innovation to support the primary activities.
Technology Development
52
Activities related to the recruitment, training, and development of employees.
Human Resource Management
53
Activities that provide the overall support for the entire value chain.
Infrastructure
54
The Value Chain: Some Factors to Consider in Assessing a Firm’s Primary Activities
Efficient plant operations to minimize costs. Appropriate level of automation in manufacturing. Quality production control systems to reduce costs and enhance quality.
Efficient plant layout and workflow design.
Quality material handling equipment to increase order picking.
Operations
55
The Value Chain: Some Factors to Consider in Assessing a Firm’s Primary Activities
Effective shipping processes to provide quick delivery and minimize damages.
Efficient finished goods warehousing processes. Shipping of goods in large lot sizes to minimize transportation costs.
Selection of the most appropriate distribution channels.
Outbound Logistics
56
The Value Chain: Some Factors to Consider in Assessing a Firm’s Primary Activities
Highly motivated and competent sales force. Innovative approaches to promotion and advertising.
Effective management of parts and equipment inventory. Effective pricing strategies.
Marketing and Sales
57
The Value Chain: Some Factors to Consider in Assessing a Firm’s Primary Activities
Quick response to customers and emergencies. Effective use of procedures for customer feedback. Systems to reduce time to send "returns" to suppliers.
Service
58
The Value Chain: Some Factors to Consider in Assessing a Firm’s Support Activities
Effective planning systems to attain overall goals and objectives.
Ability of top management to anticipate and act on key environmental trends and events.
Ability to obtain low-cost funds for capital expenditures and working capital. Excellent relationships with diverse stakeholder groups.
Ability to coordinate and integrate activities across the "value system."
Being highly visible to inculcate organizational culture, reputation, and values.
General Administration
59
The Value Chain: Some Factors to Consider in Assessing a Firm’s Support Activities
Effective recruiting, development, and retention mechanisms for employees.
Quality relations with trade unions.
Quality work environment to maximize overall employee performance and minimize absenteeism.
Reward and incentive programs to motivate all employees.
Human Resource Management
60
The Value Chain: Some Factors to Consider in Assessing a Firm’s Support Activities
Effective research and development activities for process and product initiatives. Positive collaborative relationships between R&D and other departments.
State-of-the-art facilities and equipment.
Cultivating a culture to enhance creativity and innovation.
Ensuring excellent professional qualifications of personnel and the ability to meet critical deadlines.
Technology Development
61
The Value Chain: Some Factors to Consider in Assessing a Firm’s Support Activities
Procurement of raw material inputs to optimize quality and speed, and to minimize associated costs.
Development of collaborative "win-win" relationships with suppliers. Effective procedures to purchase advertising and media services.
Analysis and selection of alternate sources of inputs to minimize dependence on one supplier.
Ability to make proper lease versus buy decisions.
Procurement
62
suggests that an organization’s competitive advantages stem from possessing strategic resources that meet specific criteria
Resource-Based View (RBV) perspective
63
specific criteria in RBV
valuable
rare
difficult to imitate
challenging to substitute
64
Types of Firm Resources
Tangible Resources
Intangible Resources
Organization Capabilities
65
assets, capabilities, organizational processes, information, and knowledge used in the development and implementation of value-creating strategies.
Firm reources
66
organizational assets physical and financial elements that contribute to the creation of value for customers.
Tangible Resources
67
These assets are less tangible and often embedded in unique routines and practices (human resources, innovation capabilities, and the reputation of the organization).
Intangible Resources
68
competencies and skills that a firm employ to transform inputs into valuable outputs effectively.
Organizational Capabilities
69
They embody the collective expertise, processes, and practices that distinguish a firm in the marketplace.
Organizational Capabilities
70
Identify what type of tangible resource.
Firm’s cash account and cash equivalents Firm’s borrowing capacity
Firm’s capacity to raise equity
Financial resources
71
Identify what type of tangible resource.
Modern plant facilities
Favourable manufacturing locations
State-of-the-art machinery and equipment
Physical Resources
72
Identify what type of tangible resource.
Trade secrets
Innovative production processes Patents, copyrights, trademarks
Technological
73
Identify what type of tangible resource.
Effective strategic planning processes Excellent evaluation and control systems
Organizational capabilities
74
Identify what type of intangible resource.
Experience and capabilities of employees. Trust. Social capital
Managerial Skills
Firm’s specific practice and procedures
Human Resources
75
Identify what type of intangible resource.
Technical and scientific skills Innovation capacities
Innovation and creativity
76
Identify what type of intangible resource.
Brand name
Reputation with customers for quality and reliability Reputation with suppliers for fairness, non-zero sum relationships.
Reputational
77
competencies or skills the firm employ to transform inputs to outputs
Organizational Capabilities
78
Capacity to combine tangible and tangible resources, using organizational processes to attain desired end
Organizational Capabilities
79
Identify what type of firm resource.
- Outstanding customer service.
- Excellent product development capabilities.
- Innovativeness of products and services.
- Ability to hire, motivate and retain human capital.
Organizational Capabilities
80
For a resource to be considered a competitive advantage, it must possess certain characteristics/criteria
RBV
81
Criteria for Sustainable Competitive Advantage. Enables the firm to capitalize on external opportunities and mitigate threats
Valuable Resources
82
Criteria for Sustainable Competitive Advantage. Support the effective implementation of the organization’s strategies
Valuable Resources
83
Criteria for Sustainable Competitive Advantage. Strengthens the firm’s ability to develop and execute strategies that drive efficiency and effectiveness
Valuable Resources
84
Criteria for Sustainable Competitive Advantage. The resource should be relatively scarce among the firm's current and potential competitors.
Rare Resources
85
Criteria for Sustainable Competitive Advantage. Few current or potential competitors possess the same resources.
Rare Resources
86
Criteria for Sustainable Competitive Advantage. Resources are costly to copy or hard to duplicate, fostering
market innovation and leadership.
Rare Resources
87
Criteria for Sustainable Competitive Advantage. the difficulty of competitors in replicating a firm's skills and resources.
Inimitability/Difficulty in Imitating
88
Factors contributing to inimitability
Physical uniqueness as the first source of inimitability.
Unique historical conditions tied to a firm's mission and vision.
Causal ambiguity, where competitors are thwarted due to the impossibility of disentangling the cause;
Social capital involving integral relationships with managers, customers, and suppliers based on trust, interpersonal relationships, culture, and reputation.
89
Criteria for Sustainable Competitive Advantage. The firm should have the organizational capabilities and structures in place to leverage and exploit the resource effectively.
4. Organized (Capability to Exploit the Resource)
90
Firm resources have to be:
Valuable
Rare
Inimitable
Non-substitutable
