21download_doc-6.php

21download_doc-6.php - J370Session5...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
J370 Session 5 o Class Session #5 – Tuesday September 15 o Dr. Siri Terjesen  What Does Internal Analysis Tell Us? o What are the firm’s strengths and weaknesses? o o Are the resources and capabilities likely sources of competitive advantage? o What strategies can we establish that will exploit any sources of competitive  advantage? External Analyses’ Outcomes o By studying the external environment, firms identify what they should or      might       choose to do   Internal Analyses’ Outcomes  o By studying the internal environment, firms identify what they  can do The Resource-Based View o Answers the Q: Why do some firms achieve better economic performance than  others? o Firm is a bundle of resources  o Assumption: a firm’s resources and capabilities are the primary drivers of  competitive advantage and economic performance o E.g. Strategists who are better at identifying and creating changes in the world  around them, and adjusting resource mix, are more likely to perform better  The Resource-Based View o Resources: tangible and intangible assets of a firm » tangible: factories; intangible: reputation used to conceive of and  implement strategies o Four Categories of Resources Financial (cash, retained earnings) Organizational  (reporting structures, relationships) The Resource-Based View o Capabilities a subset of resources that enable a firm to take full advantage of other  resources (ability of the firm to use an asset for its gain) marketing skill, cooperative relationships Resources are not productive on their own
Background image of page 1

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

View Full DocumentRight Arrow Icon
“Core competence”: capabilities fundamental to a firm’s strategy and performance Example: Elite Athletes o Resources: Healthy body, medical facilities, training venues, equipment, food supplements, physiotherapy, diet planning, excellent heart and lungs, height, weight, world-class coach(es) o Capabilities: dedication, tenacity, time to train, demanding levels of competition, will to win Examples of Firms’ Capabilities o Functional Areas Capabilities Distribution Effective use of logistics management techniques Human resources Motivating, empowering, and retaining employees Management Effective and efficient control of inventories
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/18/2011 for the course BUS 370 taught by Professor Camp during the Fall '09 term at Indiana.

Page1 / 6

21download_doc-6.php - J370Session5...

This preview shows document pages 1 - 3. Sign up to view the full document.

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