the organizational capabilities possessed by the firm that could be used

The organizational capabilities possessed by the firm

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the organizational capabilities possessed by the firm that could be used through appropriate organizational structure, business processes, control system and reward systems that are present in the firm. E.g.: - the availability of competent R&D personnel and research laboratories to innovate products continuously Using Resources to Gain Completive advantage The five steps are: - 1.Identify and classify the firm’s resources in terms of strengths and weaknesses 2. Combine the firm’s strengths into specific capabilities and core competencies 3. Appraise the profit potential of these capabilities and competencies in terms of their sustainable competitive advantages 4. Select strategy that best exploits the firm’s capabilities and competencies relative to external opportunities 5.Identify resource gaps and invest in upgrading weaknesses. 1. Transparency: - is the speed with which other firm can understand the relationship of resources and capabilities supporting a successful firm’s strategy. 2. Transferability: - is the ability of competitors to gather resources and capabilities necessary to support a competitive challenge. 3. Replicability: - is the ability of competitors to use duplicated resources and capabilities to imitate the other firm’s resources. 2. Business Models A business model is a company’s method for making money in the current business environment. It includes the key structural and operational characteristics of a firm- how it earns revenue and makes a profit. A business model is usually composed of five elements Who it serves What it provides How it makes money How it differentiates and sustain completive advantage
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How it provides its product /service. 3. Value Chain Analysis This is a method for assessing the strength and weaknesses of an organization based on an understanding of the series of activities it performs. A value chain is a set of interlinked value-creating activities performing by an organization. These, activities may begin with the procurement of basic raw materials and go through processing in various stages right up to the end product marketed to the ultimate consumer. Porter divided the value chain of a manufacturing organization into primary and support activities. They are: - Inbound logistics : - all activities that an organization uses for receiving, storing and transporting inputs going into the production process.
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