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Internal Scanning for Organizational Analysis

This document summarizes key concepts for analyzing an organization's internal strategic factors using a resource-based approach. It discusses identifying an organization's resources, capabilities, and core competencies using the VRIO framework. A 5-step approach is outlined for analyzing strategy that involves identifying strengths, appraising capabilities, selecting strategies, and identifying resource gaps. Business models, value chain analysis, organizational structures, culture, and various functional areas like marketing, finance, R&D, and human resources are also examined as important internal factors to analyze.

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Sahira Damiano
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6 views24 pages

Internal Scanning for Organizational Analysis

This document summarizes key concepts for analyzing an organization's internal strategic factors using a resource-based approach. It discusses identifying an organization's resources, capabilities, and core competencies using the VRIO framework. A 5-step approach is outlined for analyzing strategy that involves identifying strengths, appraising capabilities, selecting strategies, and identifying resource gaps. Business models, value chain analysis, organizational structures, culture, and various functional areas like marketing, finance, R&D, and human resources are also examined as important internal factors to analyze.

Uploaded by

Sahira Damiano
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

CHAPTER 5

Internal Scanning: Organizational


Analysis

5-1

Resource-Based Approach to Organizational Analysis

Internal strategic factors - Critical strengths and weaknesses that are


likely to determine if the firm will be able to
take advantage of opportunities while
avoiding threats

5-2

Resource-Based Approach to Organizational Analysis

Resources
Capabilities
Competency
Core competency
Distinctive competency
5-3

Core and Distinctive Competencies

VRIO Framework -Value


Rareness
Imitability
Organization

5-4

Resource-Based Approach to Organizational Analysis

5-Step Approach Strategy Analysis -1. Identify and classify resources


2. Combine strengths into capabilities
3. Appraise profit potential of capabilities
4. Select strategy that best exploits
5. Identify resource gaps invest in weaknesses
5-5

Continuum of Sustainability

5-6

Sustainability of Advantage

Durability - Rate at which a firms underlying resources


and capabilities depreciate or become
obsolete

Imitability - Rate at which a firms underlying resources


and capabilities can be duplicated by others

5-7

Sustainability of Advantage

Core Competency can be imitated -Transparency


Transferability
Replicability

5-8

Business Models

Companys method for making money in


the current business environment.

5-9

Business Models

Types of Models -Customer Solutions Model


Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model

5-10

Business Models

Types of Models -Time Model


Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model

5-11

Value-Chain Analysis

Linked set of value-creating activities


beginning with basic raw material and
ending with distributors getting final
goods into hands of customers

5-12

Value-Chain Analysis

Typical Value Chain for


a Manufactured Product

5-13

Corporate Value-Chain Analysis

Primary activities
Support activities

5-14

Corporations Value Chain

5-15

Scanning Functional Resources & Capabilities

Basic Organizational Structures -Simple structure


Functional structure
Divisional structure
Strategic business units (SBUs)
Conglomerate structure
5-16

Basic Organizational Structures

5-17

Corporate Culture

Collection of beliefs, expectations,


and values learned and shared by
a corporations members and
transmitted from one generation of
employees to another

5-18

Strategic Marketing Issues

Market Position & Segmentation


Marketing Mix
Product Life Cycle
Brand & Corporate Reputation
5-19

Strategic Financial Issues

Financial leverage
Capital budgeting

5-20

Strategic Research & Development Issues

R&D Intensity
Technological Competence
Technology Transfer

5-21

Technological Discontinuity

5-22

Strategic Human Resource Management Issues

HRM
Increasing use of teams
Union relations
Temporary workers
Quality of work life
Human diversity

5-23

Internal Factor Analysis Summary Table

5-24

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