carpenter_ppt_ch03_ed2

carpenter_ppt_ch03_ed2 - Chapter 3 Examining the Internal...

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Unformatted text preview: Chapter 3 Examining the Internal Environment: Resources, Capabilities, and Activities 2 OBJECTIVES 1 2 3 4 5 Explain the internal context of strategy Identify a firms resources and capabilities and explain their role in its performance Define dynamic capabilities and explain their role in both strategic change and a firms performance Explain how valuechain activities are related to firm performance and competitive advantage Explain the role of managers with respect to resources, capabilities, and valuechain activities 3 COMPARATIVE INDUSTRY REFORMANCE How do such differences in profitability materialize? ROA ROS Grocery Store Global Auto Semiconducto r 4 RESOURCES, CAPABILITIES, AND MANAGERIAL DECISIONS Strategy Competitive advantage/ disadvantage Management strategic decision making Capabilities Managers Resources Performance 5 RESOURCES AND CAPABILITIES: FUNDAMENTAL BUILDING BLOCKS OF STRATEGY The inputs that firms use to create goods and services Undifferentiated or firms-specific Tangible or intangible Easy to acquire or difficult A firms skill in using its resources to create goods and services. The combination of procedures and expertise that the firm relies on to engage in distinct activities in the process of producing goods and services C a p a b ilit ie s (c o m p e te n c ie s ) R e s o u r c e s Strategy 6 TRUST AS AN ORGANIZATIONAL RESOURCE Trust is an intangible resource 1 A trustworthy reputation for a firm can be leveraged. 2 7 KNOWLEDGE Knowledge as a resource Explicit (easy competitive intelligence) Tacit (more valuable) 8 EXAMPLES OF CAPABILITIES 1: Stalk, Evans, and Shulman, 1992 2: Makadok, 2003 Capability Result Logistics -- distributing vast amounts of goods quickly and efficiently to remote locations An extraordinarily frugal system for delivering the lowest cost structure in the mutual fund industry, using both techno- logical leadership and economies of scale Generating new ideas then turning those ideas into new, profitable products 200,000-percent return to share-...
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carpenter_ppt_ch03_ed2 - Chapter 3 Examining the Internal...

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