Lecture 3.docx - LECTURE 3 INTERNAL ANALYSIS Agenda –...

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LECTURE 3: INTERNAL ANALYSIS Agenda – ways of conceptualising and understanding the internal environment 1. Layers 2. Internal Environment Value Chain The Resource Based View o VRIN SWOT Learning Goals: What are levels/layers? What kind of analysis tools can we use? What is SWOT? What is the Value Chain? What is VRIN? Q1: WHAT ARE LAYERS OF THE BUSINESS ENV?
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Other way of looking at layers of the business environment. Let us assume that BUSS1000 is part of an organisation. Analyse the various dimensions of the class, the demographics, the abilities, what students have learnt. - 3 streams of lectures. Depending on which tutorial you are in, the combined experience of the tutor, environment determine your wholistic experience. - ‘Layers’ is a way to think about the business environment - Companies have different competitors, sectors and data DESCRIPTION OF EACH LAYER OF THE BUSINESS ENVIRONMENT There are layers of each component built onto of each other. Though the organisation stands on its own, it is still influenced in multiple layers. You need to similarly holistically analyse an organisation to understand it as a whole. - Keep these layers in mind: they are interdependent o What happens in one affects the others - Macro-environment : Highest-level – impacts all other factors - Industry – all organisations that produce the same products/services - Competitors – closest to organisation - The organisation: LAYERS OF THE BUSINESS ENVIRONMENT EXAMPLE : Lot of these can change over time – Individual: Coles, management, marketing, groceries – Organization: you need to split it up into portions o Groceries, packaging, marketing etc
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– Competitors: Woolworths, Aldi, 7 Eleven (more convenient) they are in the retail industry. o Now find the competitor relative to the area you are analysing (take-out restaurants in response to packaged noodles) o Westfarmers own Kmart and Target, they are in US. – Industry: retail – Macro-environment: Politics, drought in Queensland bananas THE VALUE CHAIN – WHAT IS IT? - Developed by Porter in 1985 - A conceptual framework that helps us to understand the processes by which organisations take inputs, add value and produce output - Map out organisation’s process and identify opportunity to increase value What is behind a business’s performance ? What could the possible reason why an organisation performs well in this year but not the next? (External) 1. The year (2019) – political environment, cross-border relationships, social change, stability of macroeconomic factors 2. Which industry that organisation is operating in: a. Pharmaceutical/steel (which has a higher probability of doing well?) Steel performs better because it is a commodity. 10-15% can be explained purely based on which industry you are in 3. Why our firm better than another’s: a. 30-40% b. Firm’s heterogeneity, resources CORE PARTS OF THE VALUE CHAIN 1. Primary activities: - Includes: Inbound logistics, operations, outbound logistics, - marketing/sales, and service 2. Support activities: -
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Christopher Reinemann
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