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1、 Prentice Hall, 2002End Show4 - 1Strategic Management in Action4Assessing Strengths and Weaknesses:Doing An Internal Analysis Prentice Hall, 2002End Show4 - 2Learning Objectives 1. Define internal analysis. 2. Describe the relationship between organizational resources, organizational capabilities, c
2、ore 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) Prentice Hall, 2002End Show4 - 3Learning Objectives 5. Explain what an internal audi
3、t 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 in
4、ternal analysis is important. Prentice Hall, 2002End Show4 - 4WHAT IS AN INTERNAL ANALYSIS?Internal AnalysisIdentifies and evaluatesresources, capabilities, and core competenciesLooks at the organizationsCurrent visionMission(s)Strategic objectivesStrategies Prentice Hall, 2002End Show4 - 5A Quick R
5、eview of Organizational ResourcesOrganizational Resources (assets)Financial resourcesPhysical assetsHuman resourcesIntangible resourcesStructural-cultural resources Prentice Hall, 2002End Show4 - 6A Quick Review of Organizational ResourcesTheStrategicRoleofOrganizationalResourcesandOrganizationalCap
6、abilitiesFigure 4-2OrganizationalResourcesFinancial assetsPhysical assetsHuman resourcesIntangible assetsStructural-cultural assetsOrganizationalCapabilitiesOrganizational processes and routinesAccumulated knowledgeActual work activitiesCoreCompetenciesDistinctive OrganizationalCapabilitiesCompetiti
7、ve AdvantagePerformance Results Prentice Hall, 2002End Show4 - 7From Resources to Organizational Capabilities Organizational capabilities Organizational routines and processesCapabilitiesSustainable competitive advantage Dynamic capabilities Prentice Hall, 2002End Show4 - 8From Capabilities toDistin
8、ctive Capabilities & Core CompetenciesFigure 4-2ExcerptOrganizationalCapabilitiesOrganizational Capabilities Org. capabilities come first Fundamental building block fordeveloping core competencies Organizational processes androutines to get the work doneCoreCompetenciesCore Competencies Not a so
9、urce 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 OrganizationalCapabilitiesDistinctiveOrganizational C
10、apabilities Special and unique capabilities Distinguish from competitors Sustainable competitive advantage Cutperform competition Prentice Hall, 2002End Show4 - 9From Capabilities toDistinctive Capabilities & Core CompetenciesCharacteristicsofDistinctiveOrganizationalCapabilitiesFigure 4-3Distin
11、ctiveOrganizationalCapabilities Contributes toSuperior CustomerValue Can Be Usedin a Varietyof Ways Is Difficultfor Competitorsto Imitate Prentice Hall, 2002End Show4 - 10From Capabilities toDistinctive Capabilities & Core CompetenciesFigure 4-2ExcerptOrganizationalCapabilitiesOrganizational Cap
12、abilities Org. capabilities come first Fundamental building block fordeveloping core competencies Organizational processes androutines to get the work doneCoreCompetenciesCore Competencies Not a source of competitive advantage Develop distinctive organizational capabilities Improve and enhance organ
13、izational capabilities Fundamental skills and capabilities Exploitable by organization Major value-creating skills and capabilities Distinctive OrganizationalCapabilitiesDistinctiveOrganizational Capabilities Special and unique capabilities Distinguish from competitors Sustainable competitive advant
14、age Outperform competition Prentice Hall, 2002End Show4 - 11The Role of Strengths and WeaknessesStrengthsResources that an organization possessesandcapabilities that an organization has developedBoth can be exploited and developed intoa sustainable competitive advantageWeaknessesResources and capabi
15、lities that are lacking or deficientPrevent an organization from developinga sustainable competitive advantage Prentice Hall, 2002End Show4 - 12HOW TO DO AN INTERNAL ANALYSISValue Chain AnalysisCustomers demand value from the goods and services they obtainCustomer ValueProduct is unique and differen
16、tProduct is low pricedQuick response to specific or distinctive customer needsValue ChainSystematic way of examining organizations functional activities How well these activities create customer value Organizations strengths and weaknesses in these areas Prentice Hall, 2002End Show4 - 13Value Chain
17、AnalysisPrimaryandSupportActivitiesin theValueChainFigure 4-4MARGINMARGINSupportActivitiesProcurementTechnological DevelopmentHuman Resource ManagementFirm InfrastructurePrimary ActivitiesInbound LogisticsOperationsOutbound LogisticsMarketing and SalesService Prentice Hall, 2002End Show4 - 14Value C
18、hain AnalysisAssessing the PRIMARY Activities in the Value Chain ( from Table 4-1)Materials control systemInventory control systemRaw material handling and warehousingEquipment comparison to competitorsPlant layoutProduction control systemLevel of automation in production processes Prentice Hall, 20
19、02End Show4 - 15Value Chain AnalysisAssessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1)Timeliness and efficiency of finished products deliveryWarehousing of finished productsMarketing researchSales promotions and advertisingAlternative distribution channelsCompetency an
20、d motivation of sales forceOrganizations image of qualityOrganizations reputationBrand loyalty of customersDomination of various market segments Prentice Hall, 2002End Show4 - 16Value Chain AnalysisAssessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1)Customer input for pr
21、oduct improvementsHandling of customer complaintsWarranty and guarantee policiesEmployee training in customer education & service issuesReplacement parts and services Prentice Hall, 2002End Show4 - 17Value Chain AnalysisAssessing the SUPPORT Activities in the Value Chain ( from Table 4-2)Alterna
22、te sources for obtaining needed resourcesTimeliness of resources procurementProcurement of large capital expenditure resourcesLease-versus-purchase decisionsLong-term relationships with reliable suppliersR&D activities in product and process innovationsRelationship between R&D and other depa
23、rtmentsMeeting deadlines in technological development activitiesQuality of labs and other research facilitiesQualifications of lab technicians and scientistsCreativity and innovation in organizational culture Prentice Hall, 2002End Show4 - 18Value Chain AnalysisAssessing the SUPPORT Activities in th
24、e Value Chain (continued) ( from Table 4-2)Recruiting, selecting, orienting, and training employeesEmployee promotion policiesReward systems to motivate and challenge employeesAbsenteeism and turnoverUnion-organization relationsEmployee participation in professional organizationsEmployee motivation,
25、 job commitment, and satisfaction Prentice Hall, 2002End Show4 - 19Value Chain AnalysisAssessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2)Identification of external opportunities and threatsAccomplishing goals with strategic planning systemCoordination and integration o
26、f value chain activitiesLow-cost capital expenditures & working capital fundsIS support for strategic and operational decisionsRelationships with stakeholdersPublic image as a responsible corporate citizen Prentice Hall, 2002End Show4 - 20Using an Internal AuditAn internal audit thoroughly asses
27、sesan organizations various internal functional areasSix Primary Functional AreasProductions-OperationsMarketingResearch and DevelopmentFinancial and AccountingManagement (including HRM)Information Systems Prentice Hall, 2002End Show4 - 21Using anInternal Environmental Analysis ProcessInternalEnviro
28、nmentalAnalysisProcessFigure 4-5Step 1SurveyingStep 2CategorizingStep 3InvestigatingStep 4Evaluating Prentice Hall, 2002End Show4 - 22Capabilities Assessment ProfileResembles Internal Environmental Analysis ProcessSimilarity: Focuses on deeper evaluation of organizations strengths & weaknessesDi
29、fference: Focuses only on an organizations capabilitiesComplex Analysis of CapabilitiesNot as easily identifiable as organizational functionsHard for competitors to imitateTwo-Phased Capability AssessmentPhase I: Identify distinctive capabilitiesPhase II: Develop and leverage these distinctive capabilities Prentice Hall, 2002End Show4 - 23Capabilities Assessment ProfileIdentifyingDistinctiveOrganizationa
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