CH5 MLR465 - STRATEGIC MANAGEMENT & BUSINESS...

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Unformatted text preview: STRATEGIC MANAGEMENT & BUSINESS POLICY 5-2 Organizational analysis- concerned with identifying and developing an organizations resources and competencies 5-3 Core and Distinctive Competencies Resources- an organizations assets Tangible Intangible Capabilities- a corporations ability to exploit its resources 5-4 Core and Distinctive Competencies Competency- a cross-functional integration and coordination of capabilities Core competency- a collection of competencies that cross divisional boundaries, is wide-spread throughout the corporation and is something the corporation does exceedingly well Distinctive competency- core competencies that are superior to those of the competition 5-5 Core and Distinctive Competencies VRIO framework (Barney) Value Rare Imitability Organization VRIO Framework The Resource based view of the firm J. B. Barney, VRIO Framework To evaluate a firms competencies: Value Does it provide customer value and a competitive advantage? Rareness Do other competitors posses 5-7 Using Resources to Gain Competitive Advantage 1. Identify and classify resources in terms of strengths and weaknesses 2. Combine the firms strengths into specific capabilities and core competencies 3. Appraise profit potential- Are there any distinctive competencies? 4. Select the strategy that best exploits the firms capabilities and competencies relative to external opportunities 5. Identify resource gaps and invest in upgrading weaknesses 5-8 Imitability an Advantage Durability- the rate at which a firms underlying resources, capabilities, or core competencies depreciate or become obsolete Imitability- the rate at which a firms underlying resources, capabilities, or core competencies can be duplicated by others 5-9 Determining the Sustainability of an Advantage Transparency- the speed at which other firms under the relationship of resources and capabilities support a successful strategy Transferability- the ability of competitors to gather the resources and capabilities necessary to support a competitive challenge Replicability- the ability of competitors to use duplicated resources and capabilities to imitate the other firms success 5-10 Determining the Sustainability of an Advantage Explicit knowledge- knowledge that can be easily articulated and communicated Tacit knowledge- knowledge that is not easily communicated because it is deeply rooted in employee experience or in the companys culture 5-11...
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CH5 MLR465 - STRATEGIC MANAGEMENT & BUSINESS...

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