国外商学院课件战略管理SM 2012 05 Analysis of strategic capability

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Competitive parity
Short term competitive advantage Long term competitive advantage
Industry average
Over industry average Over industry average
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Why are strategic resources and capabilities important in Strategy Analysis? - Context
Underpinning economic assumption: organisations wish to generate above-average returns During the 1980s and 1990s, strategy took a fundamental shift from the market-based approach of Prof Porter and others towards a greater emphasis on the competitive resources of an individual company The new approach was called the Resource-based View (RBV) of the organisation
(1990)
Combination of specific, integrated and applied knowledge, skills and attitudes of an organisation that should be used as a basis for strategic intent (Ten Have et al,2003) A group of related capabilities that confers competitive advantage (Macmillan and Tampoe) Defining core competences is a complex task
Three Critical & Fundamental Assumptions of RBV
1. Resource Heterogeneity: Organisations are not identical; bundles of resources but have different skills & abilities 2. Resource Immobility: It can be difficult to obtain or copy the capabilities of another 3. Competitive Advantage is achieved by using resources that your rivals do not have or can obtain
Outbound logistics
E.g. more farmers now pack their produce on site in retailer branded packaging
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KAY’S FRAMEWORK (for auditing strategic resources)
Kay (1993) proposed a three-strand framework for evaluating or auditing strategic resources. • Architecture – internal and external relationships and links. • Reputation – the value and power of the organization’s reputation, including branding. • Innovation – continually improving everything the organization does – products, services and processes partially in response to competition and partially to drive competitiveness in the industry.
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The Resource-Based View (RBV) of the Firm
RBV model –critically analyses the firm’s performance by focusing on the resources and capabilities controlled by the firm
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Testing competitive resources
VRIO framework-Testing competitive resources
Value – Does it provide competitive advantage? Rareness – Do other competitors possess it? Imitability – Is it costly to others to imitate? Organisation – Is the firm organised to explore the resources? (Barney,2002)
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Components of Strategic Capabilities
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Why are strategic resources and capabilities important for the Firm?
Value added at Apple: the company’s profits over time
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Activities in the value chain
Primary
Inbound logistics
E.g. Toyota transformed how stock is stored and ordered
Operations
E.g. some bakers buy in half-cooked bread and then finish it off in-store
the skills & abilities by which the organisation
resources are used effectively through its activities and processes
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Resources and Competences
Resources are the assets that organisations have or can call upon (e.g. from partners or suppliers),that is, ‘what we have’ . –Can be tangible or intangible Competences are the ways those assets are used or deployed effectively, that is, what we do well’.
..Because they deliver value added
Why are resources and capabilities important in strategy?
…Because they deliver competitive advantage
Competitive advantage at Apple: its brands, patents, distribution, etc.
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The Value of a Core Competence
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Threshold and Distinctive Capabilities
Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market – ‘qualifiers’. Distinctive capabilities are those that critically underpin competitive advantage and that others cannot imitate or obtain – ‘winners’. Dynamic Capability -is the ability of an organisation to renew and recreate its strategic capabilities to meet the needs of changing environments.
Strategic Management
Analysis of strategic capability
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Lecture plan
Core competences Core competence and competitive advantage Resource-based approach Cost efficiency Diagnosing strategic capabilities
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VRIO Framework Performance Implications
Valuable? No Rare? Inimitable Organised Competitive ? ? impact Performance implications
Competitive Under disadvantage industry average
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Classifying capabilities-Value Chain Analysis
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The value chain
Examines which parts of the organisation add the greatest value Value added of an organisation: the market value of its output minus the costs of its inputs All organisations need to add value to their inputs or they are unlikely to survive in the long term Porter’s value chain breaks down the activities of the organisation into its many parts Contribution of each part can be analysed for its contribution to: the total value added by the organisation and the Competitive Advantage of the organisation
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Core competencies
Core competences underpin competitive advantage a group of production skills and technologies that enables an organisation to provide a particular benefit to customers’ Hamel and Prahalad
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Strategic CapabiliБайду номын сангаасies
is the …… Resources + Competences
Intangible Reputation; Intellectual Capital; e.g. patents; brand names Tangible 1. Physical: e.g. 2. Financial 3. Human: e.g.