Ibm Week 4

Front 1

Internal Analysis:

what for & overview of its

components

Back 1

to identify and evaluate resources, capabilities and core competences of a company.

Front 2

Resources:

Differentiation of Resources, their definition and examples

Back 2

Tangible (physical assets)

Financial Resources eg. borrowing capacity

Organizational Resources eg. coordinating structure

Physical Resources eg. access to raw material

Technological Resources eg. patents & trademarks

Intangible (non-physical assets)

Human Resources eg. Knowledge

Innovation Resources eg. ideas and capacity to innovate

Reputational Resources eg. brand name

Front 3

Capabilities:

Definition and examples (functional areas, capabilities, example firms)

Back 3

Capabilities represent a firm's ability to integrate resources to achieve a desired objective.

unique combinations make core competencies!

Front 4

Core Competencies:

Definition and where they develop from

Back 4

Core Competencies distinguish a company competitively and make it distinctive.

Core Competencies are resources & capabilities that serve as a source of competitive advantages over rivals!

Resources --source of--> Capability --if it satisfies the criteria of the sustainable competitive advantage--> Core Compentence

Front 5

Core Competencies (VRIO Framework):

Resources & capabilities are counted as core competencies if they satisfy 4 criteria

Back 5

1. Valuable firms ability to exploit opportunities or neutralize

external threats with the resources & capabilities

2. Rare possessed by just a few firms in a group of competitors

3. Costly to Imitate

4. Organized to be exploited firm must be organized well

to obtain the benefits of resources & capabilities in order to realize a

competitive advantage.

- Appropriate structure

- Appropriate control system

- Appropriate reward system

Front 6

Core Competencies (VRIO Framework):

the 4 competitive consequences

Back 6

-competitive disadvantage

-competitive parity

-temporary competitive advantage

-sustainable competitive advantage

Never granted that core competencies will continue to provide a source of competitive advantage!

All core competencies have the potential to become core rigidities! (=former core competencies that now generate inertia and stifle innovation)

Front 7

Value Chain:

Definition & its inventor

Back 7

The value chain divides firm into the activities it performs in designing, producing, marketing and distributing its products.

- tool to identify resources and diagnosing & find

ways to enhance competitive advantage

- specificially:

- opportunities to secure cost advantages

- opportunities to create/differentiate product

Michael Porter

Front 8

Value Chain:

The Value Chain differentiates two types of activities. Name them and the corresponding activities.

Back 8

Primary Activities = value creation

(involved in creation, sales & transfer of products [incl. after-sales])

Inbound Logistics

Operations

Outbound Logistics

Marketing & Sales

Service

Support Activities = Administration

(supporting the primary activities)

Firm Infrastructure

Human Resources Management

Technology Development

Procurement

Front 9

Value Chain (Primary Activities):

More detailed description of Primary Activities

Back 9

Inbound Logistics = receiving, storing (eg. Material handling, stock control)

Operations = transforming inputs to final product/service (eg. machining, mixing, packing)

Outbound Logistics = collecting, distributing (eg. processing of orders, delivery)

Marketing & Sales = identifying customer needs, generating sales (eg. advertising, promotion)

Service = maintaining value of product after it's purchased (eg. installation, maintenance, training, repairs)

Front 10

Value Chain (Support Activities):

More detailed description of Support Activities

Back 10

Firm Infrastructure = organisational structure/culture, planning/financial/quality/control systems

Human Resources Management = Recruiting, hiring, training

Technology Development = occurs in many parts of a firm and intends to improve product and process

Procurement = acquiring raw materials, equipment, labour

Front 11

Value Chain (for Services):

Back 11

Front 12

Value Chain (Outsourcing):

Reason and (Dis-)Advantages & Disadvantage of Outsourcing parts of the Value Chain

Back 12

Reason: specialty supplier provides functions more efficient and/or cheaper.

(Dis-)Advantages:

+Cost savings eg. administrative/non-core activities

+Technology specialists = greater efficiency & quality of output

+Flexibility eg. companies with significant seasonal peaks!

+Focus/Specialisation by outsourcing non-core activities > more capacity to focus on value-adding activities

- Loss of Knowledge

Front 13

Value Chain:

Use of Value Chain

Back 13

-Source of competitive advantage can be seen

-Tool for examining activities, their interaction + how they affect each other's cost & performance

-->A firm gains competitive advantage by performing these activities better or at lower costs than competitors

-Helps stay out of "No Profit Zone"

-Present opportunities for integration

-Aligns spending with value process

Front 14

Value Chain:

3 Types of Value Chains and on what they base

Back 14

1. Manufacturing based

2. Service based

3. Manufacturing and Service based

Type of Value Chain is based on the type of

organization.

Front 15

SWOT Analysis:

Its internal & external Factors and how they're analyses

Back 15

Internal Factors --> Internal Analysis

to compare with competitors

Strengths & Weaknesses

External Factors --> PESTEL / Five Forces

to analyze the environment

Opportunities & Threats

Front 16

SWOT Analysis:

Detailed description of internal Factors

Back 16

Strengths:

- Qualities that enable company to accomplish its mission

- Basis for success

- Can be tangible or intangible

Weaknesses:

- Quality that prevent company from accomplishing its mission and achieving its full potential

- Factors which don't meet required standards

- Must be minimized and eliminated

Front 17

SWOT Analysis:

Detailed description of external Factors

Back 17

Opportunities:

- Presented by environment (market, competition, industry/government, technology..)

- Organizations can take benefit from conditions > plan and execute strategies that enable to become more profitable > maybe even gain competitive advantage

Threats:

- When environment jeopardizes reliability & profitability of business

- Uncontrollable

- Put stability and survival at risk

Front 18

SWOT Analysis:

Apply SWOT Analysis to..

Back 18

- explore possibilities for new efforts/solutions/problems

- decide about best path for initiatives (eg. new product)

- determine wether change is possible as it reveals priorities & possibilities

- adjust & refine plans mid-course

- communicate about initiatives

- organize information gathered (eg. from surveys)

Front 19

SWOT Analysis:

What to analyze

Back 19

Organizational environment = complex!

Organisation gets overwhelmed with relevant and irrelevant information.

Therefore

Focus on trends/events that are likely to be of the greatest significance for the company!