SPD4251_BPS_-_Lecture_4_SV

SPD4251_BPS_-_Lecture_4_SV - PEED – Bachelor of Arts in...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: PEED – Bachelor of Arts in Business (General Mgt/Finance/IB) Subject Lecturer: Macy Wong Meeting 4 SPD4251 Business Policy and Strategy 2 A. Today’s Class Meeting ¡ Internal Environment I \ Resource-based view 3 Internal Environment I 4 What Does Internal Analysis Tell Us? Internal analysis provides a comparative look at a firm’s capabilities • what are the firm’s strengths? • what are the firm’s weaknesses? • how do these strengths & weaknesses compare to competitors? 5 Why Does Internal Analysis Matter? • establish strategies that will exploit any sources of competitive advantage • determine if its resources and capabilities are likely sources of competitive advantage Internal analysis helps a firm: 6 The Theory Behind Internal Analysis The Resource-Based View • developed to answer the question: Why do some firms achieve better economic performance than others? • assumes that a firm’s resources and capabilities are the primary drivers of competitive advantage and economic performance • used to help firms achieve competitive advantage and superior economic performance 7 The Resource-Based View Resources and Capabilities Resources: • tangible and intangible assets of a firm • used to conceive of and implement strategies Capabilities: • a subset of resources that enable a firm to take full advantage of other resources 8 Resource Resource-- Based View of the Based View of the Firm Firm ¡ Firm’s resources must be evaluated in terms of how valuable, rare, and hard they are for competitors to duplicate ¡ Three key types of resources ¾ Tangible resources ¾ Intangible resources ¾ Organizational capabilities 1-8 9 Types of Resources: Tangible Resources ¡ Relatively easy to identify, and include physical and financial assets used to create value for customers ¡ Financial resources \ Firm ’ s cash accounts \ Firm ’ s capacity to raise equity \ Firm ’ s borrowing capacity ¡ Physical resources \ Modern plant and facilities \ Favorable manufacturing locations \ State-of-the-art machinery and equipment 10 Types of Resources: Tangible Resources ¡ Technological resources \ Trade secrets \ Innovative production processes \ Patents, copyrights, trademarks ¡ Organizational resources \ Effective strategic planning processes \ Excellent evaluation and control systems 11 Types of Resources: Intangible Resources ¡ Difficult for competitors (and the firm itself) to account for or imitate, typically embedded in unique routines and practices that have evolved over time \ Human ¡ Experience and capabilities of employees ¡ Trust ¡ Managerial skills ¡ Firm-specific practices and procedures 12 Types of Resources: Intangible Resources ¡ Innovation and creativity \ Technical and scientific skills \ Innovation capacities (25 Most Innovative Products of the Year http://www.pcworld.com/printable/article/id,140663/printable.html ) ¡ Reputation \ Brand name \ Reputation with customers \ Reputation with suppliers 13...
View Full Document

This note was uploaded on 02/23/2010 for the course BA SPD4251 taught by Professor Macy during the Spring '10 term at HKUST.

Page1 / 45

SPD4251_BPS_-_Lecture_4_SV - PEED – Bachelor of Arts in...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online