Internal Scanning: Organizational Analysis

1
Chapter 4

• Internal Scanning Organizational Analysis

2

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

3
Resource-Based Approach

• Resource
• An asset, competency, process, skill, or
  knowledge controlled by the corporation.

4
Limitations to SWOT

• Simplistic, superficial, lengthy list
• Lacking in strategic relevance
• Not tied to competitive environment

5
Evaluating Key Resources

• VRIO Framework
• Value Does it provide competitive advantage?
• Rareness Do other competitors possess it?
• Imitability Is it costly for others to imitate?
• Organization Is the firm organized to take
  advantage of the resource?

6
Resource-Based Approach

• 5-Step approach to strategy analysis
• Identify classify firms resources
• Strengths weaknesses
• Combine firms strengths into capabilities
• Core competencies
• Distinctive competencies

7
Resource-Based Approach

• 5-Step approach to strategy analysis
• Profit potential of resources
• Sustainable competitive advantage
• Select strategy
• Take advantage of firms resources relative to
  external opportunities
• Identify resource gaps
• Invest in upgrading weaknesses

8
Corporate Value Chain

9
Corporate Value Chain Analysis

• Examine each product lines value chain
• Core competencies core deficiencies
• Examine the linkages within each product lines
  value chain
• Connections between the way one value activity is
  performed and the cost of performance of another
  activity
• Examine the synergies among the value chains of
  different product lines or business units
• Economies of scope

10
Corporate Culture

• Defined
• Collection of beliefs, expectations, and values
  learned and shared by a corporations members and
  transmitted from one generation of employees to
  another.

11
Corporate Culture

• Important Functions
• Sense of identity for employees
• Generate employee commitment
• Stability of organization
• Guide for appropriate behavior

12
Strategic Marketing Issues

• Market Position
• Who are our customers?
• Market Segmentation
• Niches, new product development
• Marketing Mix 4Ps
• Combination of key variables under the
  corporations control used to affect demand and
  gain competitive advantage.

13
The Product Life Cycle
The right end of the Growth stage is often
called Competitive Turbulence because of price
and distribution competition that shakes out the
weaker competitors. For further information, see
C. R. Wasson, Dynamic Competitive Strategy and
Product Life Cycles, 3rd ed. (Austin, Tex.
Austin Press, 1978).
14
Strategic Financial Issues

• Financial Leverage
• Ratio of total debt to total assets.
• Capital Budgeting
• Analyzing and ranking possible investments in
  fixed assets.

15
Strategic RD Issues

• RD Intensity
• Spending on RD as a percentage of sales revenue.
• Technological Competence
• Development and use of innovative technology.
• Technology Transfer
• Process of taking new technology from the lab to
  the marketplace.

16
Strategic Operations Issues

• Intermittent systems
• Manufacturing systems where items are normally
  processed sequentially but the work and sequence
  of the process vary.
• Continuous systems
• Laid out as lines where products are continuously
  assembled or processed.

17
Strategic HRM Issues

• Teams
• Autonomous (self-managing)
• Cross-functional
• Unionization
• Temporary Workers
• Increase flexibility avoid layoffs

18
Strategic HRM Issues

• Quality of Worklife
• Participative problem solving
• Restructuring work
• Innovative reward systems
• Improvements in work environment
• Spirituality in the workplace
• Human Diversity
• Different races, cultures and backgrounds in the
  workplace.

19
Impact of the Internet

• Virtual Teams
• Groups of geographically and/or organizationally
  dispersed coworkers that are assembled using a
  combination of telecommunications and information
  technologies to accomplish an organizational
  task.