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,Chap Info,Title,(Exhibit x.x),Prentice Hall,2002,End Show,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.,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 environmental 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.,W,HAT,I,S AN,I,NTERNAL,A,NALYSIS,?,Internal Analysis,Identifies and evaluates,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-cultural 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,Organizational 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,Capabilities,Sustainable,competitive advantage,Dynamic capabilities,From Capabilities toDistinctive Capabilities&Core Competencies,Figure 4-2,Excerpt,Organizational,Capabilities,Organizational Capabilities,O,rg.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 organizational 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,Distinguish from competitors,Sustainable competitive advantage,Cutperform,competition,From Capabilities toDistinctive Capabilities&Core Competencies,Characteristics,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,Organizational,Capabilities,Organizational Capabilities,O,rg.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 organizational 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,Distinguish 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,Weaknesses,Resources and capabilities that are lacking or deficient,Prevent an organization from developing,a sustainable competitive advantage,H,OW TO,D,O AN,I,NTERNAL,A,NALYSIS,Value Chain Analysis,Customers demand value from the goods and services they obtain,Customer Value,Product is unique and different,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,Support,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,Activities in the Value Chain(from Table 4-1),Inbound Logistics,Materials control system,Inventory control system,Raw material handling and war
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