BUSS1000 FINALS NOTES.docx - BUSS1000 FINALS NOTES WEEK 3...

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BUSS1000 FINALS NOTES WEEK 3: Internal Analysis Macro-environment : Highest level layer, factors identified in this layer impact all organisations to some degree Industry : Constituted of all organisations that produce the same products or services. Competitors : Layer closest to organisation, within an industry or sector, some organisations will be competing closer than others. The organisation : The organisation itself. Value Chain Developed by Porter in 1985 A conceptual framework that helps us to understand the processes by which organisations take inputs, add value, and produce outputs Two core parts of this: Primary activities Inbound logistics, operations, outbound logistics, marketing/sales, and service Support activities Firm infrastructure, Human Resource Management, technology development, and procurement. Critiques of Value Chain It can lead us to believe that organisations are linear input > value add > output system. Value chain fits better when we look at organisations that manufacture or make goods. When you have a service business it isn’t very good. It is hard to translate to smaller, more agile or nimble organisations. Analysis is just a snapshot in that moment The Resource Based View? The resource based view of the firm holds that certain assets with certain characteristics will lead to sustainable competitive advantage. All the traits are required to be present to result in a sustainable competitive advantage. VRIO is the framework being covered today VRIO Value, Rareness, Imitability, and Organisationally Relevant VRIO is one of many theoretical frameworks to help us conceptualise and organisation’s resources and in turn, competitive advantage.
Using VRIO Create a list of resources and capabilities Then for each, go through the flow chart Critiques and Limitations of the VRIO Framework It fails to address and acknowledge that these resources do not exist separately and in isolation. It also fails to address the creation and development of resources It assumes, resources are already there. Where does innovation sit in this? SWOT Strengths, Weaknesses, Opportunities, and threats Based on a substantial body of work. Initially designed for project evaluation Is most commonly used to examine and organisation as a whole At the time, corporate planning was in vogue but as it was mainly interested in long- term planning, it was “not working” Its important to remember that while the S and W are very internally focused, the O and T are outwardly focused. Critiques of SWOT SWOT in many ways blinds us to complexity. It’s fairly one dimensional in so far as you simply create lists under each. Research would suggest that people do these SWOT analyses, then never actually use the outputs.

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