TMP 120 Lecture 3 Resources and Capabilities with Review 12418.pptx - Resources and Capabilities Dr Karen Smith Bogart Today Review Competitive

TMP 120 Lecture 3 Resources and Capabilities with Review 12418.pptx

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Resources and Capabilities January 24, 2018 Dr. Karen Smith Bogart
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Today: Review Competitive Advantage Competing on Resources & Capabilities Patagonia Strategy Quiz
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Strategy: It’s About Winning Creates a unique sustainable advantage. Common Elements of Strategy Long-term and consistent goals. Deep understanding of the competitive environment. Objective assessment of resources and capabilities. Effective execution to reach the goals. Strategy Aim: Creating Value Key questions: Where to compete? How to compete?
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What is Strategy?: Porter The choice of which unique activities a firm should pursue Sustainable advantage requires trade-offs, can’t pursue everything Operational effectiveness is not strategy. It’s important but not enough…. Advantage requires “fit” among the company activities in the Value Chain … a consistency toward winning objectives. Inbound logistics Operations Marketing and Sales Services Outbound Logistics Company infrastructure Human resource management Technology development Procurement
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Strategic Fundamentals: Collis and Rukstad Vision Statement: What do we want to be. Aspiration. Mission Statement: Why we exist. Our Purpose. Values Statement: What do we believe in, how will we behave Goals: Objectives Strategy Objective – the ends Scope – the domain of activities Advantage – the means to obtain the “ends” Balanced Scorecard: How we will measure The Strategic Sweet Spot: Where the needs of the customers’ and the resources of the company intersect in a way that rivals can’t compete given the context of the market place
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Industry Attractiveness: Porter’s “5” Forces Analysis Suppliers Suppliers Existing Competitors Existing Competitors Buyer Buyer New Entrants New Entrants Substitutions Substitutions Threat of new entrants barriers to entry economies of scale brand equity Bargaining power of suppliers supplier switching costs degree of differentiation of inputs substitute inputs supplier concentration to firm concentration ratio threat of forward integration Bargaining power of customers buyer concentration to firm concentration ratio bargaining leverage buyer volume buyer price sensitivity Threat of substitute prod buyer propensity to substitute relative price performance of sub buyer switching costs perceived level of product differe Intensity of competitive rivalry industry overcapacity exit barriers diversity of competitors informational complexity and asym brand equity Source: Porter, M. (1980) Competitive Strategy , The Free Press, New York, 1980.
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Industry Attractiveness /
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Environmental Impacts: PESTEL (or PEST)Analysis P olitical National/International E conomic S ociocultural T echnological E cological Legal The Industry Environment Suppliers Competitors Customers Grant, R. (2005) Contemporary Strategy Analysis. Oxford, UK: John Wiley and Sons. P. 66
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