Presentation on theme: "EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS"— Presentation transcript: 1 EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS Show
2 Learn how to take stock of how well a
company’s strategy is working. 3 EVALUATING A FIRM’S INTERNAL SITUATION 4 QUESTION 1: HOW WELL IS THE COMPANY’S PRESENT STRATEGY WORKING? 5 Other Indicators of Strategic Success 6 4.1 Identifying the Components of a Single-Business Company’s Strategy 7 4.1 How Calculated Key Financial Ratios
8 4.1 Key Financial Ratios (cont’d) 9 4.1 Key Financial Ratios
(cont’d) 10 QUESTION 2: WHAT ARE THE COMPANY’S COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES? 11 Resources and Capabilities 12 Organizational
resources Intangible Resources
13 Resource and Capability Analysis 14 Identifying Capabilities 15 Managing Resources and Capabilities Dynamically 16 QUESTION 3: IS THE COMPANY ABLE TO SEIZE MARKET OPPORTUNITIES AND NULLIFY EXTERNAL
THREATS? 17 Identifying a Company’s Internal Strengths 18 Identifying a Company’s Weaknesses and Competitive Deficiencies
19 Identifying a Company’s Market Opportunities 20 Identifying the Threats to a Company’s Future
Profitability
21 What Do the SWOT Listings Reveal?
22 4.2 The Steps Involved in SWOT Analysis: Identify the Four Components of SWOT,
Draw Conclusions, Translate Implications into Strategic Actions 23 Signs of A Firm’s Competitive Strength: 24 The Concept of
a Company Value Chain
25 4.3 A Representative Company Value Chain 26 Comparing the Value Chains of
Rival Firms 27 Value Chain System for an Entire Industry 28 4.4 Representative Value Chain System for an Entire Industry 29 30
Which activities in the value chain are primary activities
31 Benchmarking and Value Chain Activities 32 Strategic
Options for Remedying a Disadvantage in Costs or Effectiveness
33 Options for Improving the Efficiency and Effectiveness of Internal Value Chain Activities 34 Ways to Improve the Effectiveness of the Customer Value Proposition and Enhance Differentiation
35 Ways to Improve the Efficiency and Effectiveness of Supplier-Related Value Chain Activities 36 Achieving Cost-Based Competitiveness:
37 Enhancing Differentiation:
38 4.5 Translating Company Performance of Value Chain Activities into Competitive Advantage
39 4.5 Translating Company Performance of Value Chain Activities into Competitive Advantage (cont’d)
40 Competitive Advantage Indicators: 41 The Competitive Strength Assessment Process
42 4.4 A Representative Weighted Competitive Strength Assessment
43 Strategic Implications of Competitive Strength Assessment 44
Identifying Strategic Issues: 45 Identifying Strategic Issues (cont’d): Is a proficiently performed internal activity that is central to a firm's strategy and competitiveness?A core competence is a proficiently performed internal activity that is central to a company's strategy and is typically distinctive as well.
What is a proficiently performed internal activity?core competence. a proficiently performed internal activity that is central to a company's strategy and competitiveness. distinctive competence. a core competence that is performed with a very high level of proficiency.
When a company performs a competitively important activity?When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals, it is said to have: a competitive advantage over rivals.
When a company performs some activities truly well in comparison to competitors it is said to have?Competitive Advantage vs.
A firm's ability to produce a good or service more efficiently than its competitors, which leads to greater profit margins, creates a comparative advantage. Rational consumers will choose the cheaper of any two perfect substitutes offered.
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