Bài giảng Strategic Management - Chapter 3: Assessing the Internal Environment of the Firm

Assessing the Internal Environment of the Firmchapter 3Value-Chain AnalysisValue-chain analysis looks at the sequential process of value-creating activitiesValue is the amount buyers are willing to pay for what a firm providesHow is value created within the organization?How is value created for other organizations in the overall supply chain or distribution channel?The value received must exceed the costs of production3-*Value-Chain AnalysisPrimary activities contribute to the physical creation of the product or service; the sale & transfer to the buyer; and service after the sale:Inbound logisticsOperationsOutbound logisticsMarketing & salesService3-*Value-Chain AnalysisSupport activities either add value by themselves or add value through important relationships with both primary activities & other support activities:ProcurementTechnology developmentHuman resource managementGeneral administration3-*The Value Chain3-*Exhibit 3.1 The Value Chain: Primary and Support ActivitiesSource: Reprinted with permission of The Free Press, a division of Simon & Schuster Inc., from Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter. Copyright © 1985, 1998 by The Free Press. All rights reserved.Support Activity: General AdministrationGeneral administration involvesEffective planning systems to attain overall goals & objectivesExcellent relations with diverse stakeholder groupsEffective information technology to coordinate & integrate value-creating activities across the value chainAbility of top management to anticipate & act on key environmental trends & events, create strong values, culture & reputation3-*The Value Chain in Service Organizations3-*Exhibit 3.4 Some Examples of Value Chains in Service IndustriesResource-Based View of the FirmThe resource-based view of the firm (RBV)Combines an internal analysis of phenomena within a companyWith an external analysis of the industry & its competitive environmentResources can lead to a competitive advantageIf they are valuable, rare, hard to duplicateWhen tangible resources, intangible resources, & organizational capabilities are combined3-*Types of Firm ResourcesTangible resources are assets that are relatively easy to identify:Physical assets: plant & facilities, location, machinery & equipmentFinancial assets: cash & cash equivalents, borrowing capacity, capacity to raise equityTechnological resources: trade secrets, patents, copyrights, trademarks, innovative production processesOrganizational resources: effective planning processes & control systems3-*Types of Firm ResourcesIntangible resources are difficult for competitors to account for or imitate – are embedded in unique routines & practices:Human resources: trust, experience & capabilities of employees; managerial skills & effectiveness of work teamsInnovation resources: technical & scientific expertise & ideas; innovation capabilitiesReputation resources: brand names, reputation for fairness with suppliers; reliability & product quality with customers3-*Types of Firm ResourcesOrganizational capabilities are competencies or skills that a firm employs to transform inputs into outputs; the capacity to combine tangible & intangible resources to attain desired endsOutstanding customer serviceExcellent product development capabilitiesSuperb innovation processes & flexibility in manufacturing processesAbility to hire, motivate, & retain human capital3-*Firm Resources and Sustainable Competitive AdvantagesStrategic resources have four attributes:Valuable in formulating & implementing strategies to improve efficiency or effectivenessRare or uncommon; difficult to exploitDifficult to imitate or copy due to physical uniqueness, path dependency, causal ambiguity, or social complexityDifficult to substitute with strategically equivalent resources or capabilities3-*Five Types of Financial Ratios3-*Exhibit 3.9 A Summary of Five Types of Financial RatiosThe Balanced ScorecardA meaningful integration of many issues that come into evaluating performanceFour key perspectives:How do customers see us? (customer perspective)What must we excel at? (internal perspective)Can we continue to improve and create value? (innovation & learning perspective)How do we look to shareholders? (financial perspective)3-*