Week 3 - Internal Environment-1

Week 3 - Internal Environment-1 - Integrated Core, Fall...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Week 3: Internal Environment Integrated Core, Fall 2010 J-370, Strategy Component
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter 3: Important Things to Know Know what resources and capabilities are Understand the RBV Know how to implement the VRIO Framework
Background image of page 2
Chapter 3: Important Terms to Know Resource-based view Types of resources (all) Resource heterogeneity Resource immobility VRIO Framework Value Rarity Immobility Organization Business plan Direct duplication / substitution Causal ambiguity Path dependence Formal reporting structure Types of controls Complementary resources and capabilities Distinctive competence Tacit cooperation
Background image of page 3

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

View Full DocumentRight Arrow Icon
Evaluating Internal Capabilities
Background image of page 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’?
Background image of page 5

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

View Full DocumentRight Arrow Icon
Why Does Internal Analysis Matter? Internal analysis helps a firm: Determine if its resources and capabilities are likely sources of competitive advantage Establish strategies that will exploit any sources of competitive advantage
Background image of page 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? Used to help firms achieve competitive advantage and superior economic performance Assumes that a firm’s resources and capabilities are the primary drivers of competitive advantage and economic performance
Background image of page 7

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

View Full DocumentRight Arrow Icon
Question Consider two firms, with two absolutely equal sets of resources. Using RBV, what can you say about the firms’ performance? A. Both firms can do equally well B. One firm can do better than the other
Background image of page 8
The Resource-Based View Resources Tangible and intangible assets of a firm Tangible: factories, products Intangible: reputation Used to conceive of and implement strategies Capabilities A subset of resources that enable a firm to take full advantage of other resources Marketing skill, cooperative relationships
Background image of page 9

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

View Full DocumentRight Arrow Icon
Firm Assets: Are they resources or capabilities? For every option, A: Resource B: Capability 1. Machinery -? 2. Collective product design skill - ? 3. Recruiting skill - ? 4. Engineering skill of individuals - ? 5.
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/05/2010 for the course BUS F370 taught by Professor Tom during the Spring '10 term at Indiana Institute of Technology.

Page1 / 38

Week 3 - Internal Environment-1 - Integrated Core, Fall...

This preview shows document pages 1 - 11. Sign up to view the full document.

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