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1、,Chapter 3,The Internal Environment: Resources, Capabilities and Core Competencies,Michael A. Hitt R. Duane Ireland Robert E. Hoskisson,2000 South-Western College Publishing,SWOT Analysis,Strengths Weaknesses Opportunities Threats,The purpose of SWOT Analysis,It is an easy-to-use tool for developing

2、 an overview of a companys strategic situation It forms a basis for matching your companys strategy to its situation,Strengths,A STRENGTH is something a company is good at doing or a characteristic that gives it an important capability. Possible Strengths: Name recognition Proprietary technology Cos

3、t advantages Skilled employees Loyal Customers,Weaknesses,A WEAKNESS is something a company lacks or does poorly (in comparison to others) or a condition that places it at a disadvantage Possible Weaknesses: Poor market image Obsolete facilities Internal operating problems Poor marketing skills,Stre

4、ngths and Weakness form a basis for INTERNAL analysis,By examining strengths, you can discover untapped potential or identify distinct competencies that helped you succeed in the past. By examining weaknesses, you can identify gaps in performance, vulnerabilities, and erroneous assumptions about exi

5、sting strategies.,Discovering Core Competencies,How do we assemble bundles of Resources, Capabilities and Core Competencies to create VALUE for customers?,Will environmental changes make our core competencies obsolete?,And.,Are substitutes available for our core competencies?,Are our core competenci

6、es easily imitated?,Key Questions for Managers in Internal Analysis,Discovering Core Competencies,What a firm has to work with:,its assets, including its people and the value of its brand name,What a firm Has.,Resources,Resources represent inputs into a firms production process.,such as capital equi

7、pment, skills of employees, brand names, finances and talented managers,What a firm Has.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources r

8、epresent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,“Some genius invented the Oreo. Were just living off the inheritance.”,F. Ross Johnson, Former President & CEO, RJR Nabisco,What a firm Has.,Resources,Tangible

9、 Resources,What a firm Has.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,Intangible Resources,“Som

10、e genius invented the Oreo. Were just living off the inheritance.”,F. Ross Johnson, Former President & CEO, RJR Nabisco,Resources,Discovering Core Competencies,What a firm Does.,Capabilities,What a firm Does.,Capabilities develop over time as a result of complex interactions that take advantage of t

11、he interrelationships between a firms tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firms employees.,Capabilities,What a firm Does.,Capabilities represent:,the firms capacity or ability to

12、integrate individual firm resources to achieve a desired objective.,Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development, transmission and exchange or shari

13、ng of information and knowledge as carried out by the firms employees.,Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage.,Capabilities,Discovering Core Competencies,“are the esse

14、nce of what makes an organization unique in its ability to provide value to customers.”,Leonard-Barton, Bowen, Clark, Holloway & Wheelwright,McKinsey & Co. recommends identifying three to four competencies to use in framing strategic actions.,Core Competencies,Discovering Core Competencies,* Outsour

15、ce,For a strategic capability to be a Core Competency, it must be:,Core Competencies,What a firm Does.,that is Strategically Valuable,Core Competencies must be:,Nonsubstitutable,Capabilities that do not have strategic equivalents, such as firm-specific knowledge or trust-based relationships,What a f

16、irm Does.,that is Strategically Valuable,Core Competencies,Valuable,Rare,Costly to Imitate,Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social complexity,Capabilities that are possessed by few, if any, current or potential comp

17、etitors,Capabilities that either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment,* Outsource,Discovering Core Competencies,Support Activities,Primary Activities,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Val

18、ue,Support Activities,Primary Activities,Inbound Logistics,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activities,Primary Activities,Inbound Logistics,Operations,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activiti

19、es,Primary Activities,Inbound Logistics,Operations,Outbound Logistics,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activities,Primary Activities,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Value Chain Analysis,Identifying Resources and

20、Capabilities That Can Add Value,Support Activities,Primary Activities,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activities,Primary Activities,Inbound Logistics,Operations,Outbound L

21、ogistics,Marketing & Sales,Service,Procurement,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activities,Primary Activities,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,Procurement,Technological Development,Value Chain Analysis,Ide

22、ntifying Resources and Capabilities That Can Add Value,Support Activities,Primary Activities,Technological Development,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,Human Resource Management,Value Chain Analysis,Identifying Resources and Capabilities That Can

23、Add Value,Support Activities,Primary Activities,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activit

24、ies,Primary Activities,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,MARGIN,MARGIN,Value Chain Analysis,Identifying Resources and Capabilities That Can Add Value,Support Activities,Primary

25、 Activities,Outsourcing,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,MARGIN,MARGIN,Strategic Choice to Purchase Some Activities From Outside Suppliers,Support Activities,Primary Activitie

26、s,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,MARGIN,Inbound Logistics,Operations,Outbound Logistics,Service,Marketing & Sales,Technological Development,Human Resource Management,Procurement,MARGIN,Firms often purchase a portion of their value-creating activities from specialty external suppliers who can perform these functions more efficiently,Outsourcing,Strategic Choice to Purchase Some Activities From Outsi

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