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1、Strategic Management in Action,4,Assessing Strengths and Weaknesses: Doing An Internal Analysis,Learning Objectives,1.Define internal analysis.,2.Describe the relationship between organizational resources, organizational capabilities, core competencies, and distinctive organizational capabilities. 3

2、.Explain what organizational strengths and weaknesses are. 4.Describe the primary and support activities on the value chain.,(continued on next slide),Learning Objectives,5.Explain what an internal audit is and how it can be used for an internal analysis.,6.Discuss the features of the internal envir

3、onmental analysis process. 7.Describe the steps in a capabilities assessment profile. 8.Explain the criteria that could be used to assess an organizations strengths and weaknesses. 9.Discuss why an internal analysis is important.,WHAT IS AN INTERNAL ANALYSIS?,Internal Analysis Identifies and evaluat

4、es resources, capabilities, and core competencies Looks at the organizations ,Current vision Mission(s) Strategic objectives Strategies,A Quick Review of Organizational Resources,Organizational Resources (assets) ,Financial resources Physical assets Human resources Intangible resources Structural-cu

5、ltural resources,A Quick Review of Organizational Resources,The Strategic Role of Organizational Resources and Organizational Capabilities Figure 4-2,Organizational Resources,Financial assets Physical assets Human resources Intangible assets Structural-cultural assets,Organizational Capabilities,Org

6、anizational processes and routines Accumulated knowledge Actual work activities,Core Competencies,Distinctive Organizational Capabilities,Competitive Advantage,Performance Results,From Resources to Organizational Capabilities, ,Organizational capabilities Organizational routines and processes Capabi

7、lities Sustainable competitive advantage Dynamic capabilities,From Capabilities toDistinctive Capabilities & Core Competencies,Figure 4-2 Excerpt,Organizational Capabilities,Organizational Capabilities Org. capabilities come first Fundamental building block for developing core competencies Organizat

8、ional processes and routines to get the work done,Core Competencies,Core Competencies Not a source of competitive advantage Develop distinctive organizational capabilities Improve and enhance organizational capabilities Fundamental skills and capabilities Exploitable by organization Major value-crea

9、ting skills and capabilities,Distinctive Organizational Capabilities,Distinctive Organizational Capabilities Special and unique capabilities Distinguish from competitors Sustainable competitive advantage Cutperform competition,From Capabilities toDistinctive Capabilities & Core Competencies,Characte

10、ristics of Distinctive Organizational Capabilities Figure 4-3,Distinctive Organizational Capabilities,Contributes to Superior Customer Value,Can Be Used in a Variety of Ways,Is Difficult for Competitors to Imitate,From Capabilities toDistinctive Capabilities & Core Competencies,Figure 4-2 Excerpt,Or

11、ganizational Capabilities,Organizational Capabilities Org. capabilities come first Fundamental building block for developing core competencies Organizational processes and routines to get the work done,Core Competencies,Core Competencies Not a source of competitive advantage Develop distinctive orga

12、nizational capabilities Improve and enhance organizational capabilities Fundamental skills and capabilities Exploitable by organization Major value-creating skills and capabilities,Distinctive Organizational Capabilities,Distinctive Organizational Capabilities Special and unique capabilities Disting

13、uish from competitors Sustainable competitive advantage Outperform competition,The Role of Strengths and Weaknesses,Strengths ,Resources that an organization possesses and capabilities that an organization has developed,Both can be exploited and developed into a sustainable competitive advantage,Wea

14、knesses,Resources and capabilities that are lacking or deficient,Prevent an organization from developing a sustainable competitive advantage,HOW TO DO AN INTERNAL ANALYSIS,Value Chain Analysis Customers demand value from the goods and services they obtain Customer Value ,Product is unique and differ

15、ent Product is low priced Quick response to specific or distinctive customer needs Value Chain Systematic way of examining organizations functional activities,How well these activities create customer value Organizations strengths and weaknesses in these areas,Value Chain Analysis,Primary and Suppor

16、t Activities in the Value Chain Figure 4-4,MARGIN,MARGIN,Support Activities,Procurement,Technological Development,Human Resource Management,Firm Infrastructure,Primary Activities,Inbound Logistics,Operations,Outbound Logistics,Marketing and Sales,Service,Value Chain Analysis,Assessing the PRIMARY Ac

17、tivities in the Value Chain ( from Table 4-1),Inbound Logistics, ,Materials control system Inventory control system Raw material handling and warehousing,Operations, ,Equipment comparison to competitors Plant layout Production control system Level of automation in production processes,Value Chain An

18、alysis,Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1),Outbound Logistics, ,Timeliness and efficiency of finished products delivery Warehousing of finished products,Marketing and Sales, ,Marketing research Sales promotions and advertising Alternative distribution ch

19、annels Competency and motivation of sales force Organizations image of quality Organizations reputation Brand loyalty of customers Domination of various market segments,Value Chain Analysis,Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1),Customer Service, ,Customer

20、input for product improvements Handling of customer complaints Warranty and guarantee policies Employee training in customer education & service issues Replacement parts and services,Value Chain Analysis,Assessing the SUPPORT Activities in the Value Chain ( from Table 4-2),Procurement, ,Alternate so

21、urces for obtaining needed resources Timeliness of resources procurement Procurement of large capital expenditure resources Lease-versus-purchase decisions Long-term relationships with reliable suppliers,Technological Development, ,R&D activities in product and process innovations Relationship betwe

22、en R&D and other departments Meeting deadlines in technological development activities Quality of labs and other research facilities Qualifications of lab technicians and scientists Creativity and innovation in organizational culture,Value Chain Analysis,Assessing the SUPPORT Activities in the Value

23、 Chain (continued) ( from Table 4-2),Human Resource Management, ,Recruiting, selecting, orienting, and training employees Employee promotion policies Reward systems to motivate and challenge employees Absenteeism and turnover Union-organization relations Employee participation in professional organi

24、zations Employee motivation, job commitment, and satisfaction,Value Chain Analysis,Assessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2),Firm Infrastructure, ,Identification of external opportunities and threats Accomplishing goals with strategic planning system Coordinat

25、ion and integration of value chain activities Low-cost capital expenditures & working capital funds IS support for strategic and operational decisions Relationships with stakeholders Public image as a responsible corporate citizen,Using an Internal Audit,An internal audit thoroughly assesses an orga

26、nizations various internal functional areas Six Primary Functional Areas ,Productions-Operations Marketing Research and Development Financial and Accounting Management (including HRM) Information Systems,Using anInternal Environmental Analysis Process,Internal Environmental Analysis Process Figure 4

27、-5,Step 1,Surveying,Step 2,Categorizing,Step 3,Investigating,Step 4,Evaluating,Capabilities Assessment Profile,Resembles Internal Environmental Analysis Process ,Similarity: Focuses on deeper evaluation of organizations strengths & weaknesses Difference:Focuses only on an organizations capabilities

28、Complex Analysis of Capabilities Not as easily identifiable as organizational functions Hard for competitors to imitate Two-Phased Capability Assessment Phase I: Identify distinctive capabilities Phase II: Develop and leverage these distinctive capabilities,Capabilities Assessment Profile,Identifying Distinctive O

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