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Analysis / Organization Analysis
resource can be an asset, skill, process or knowledge controlled by an organisation. Organisation resources includes both those that are owned by the orgn. And those that can be accessed by the orgn.
Resources can be Tangible or intangible: -
Resource - Types
• Tangible: can be seen and quantified like building, machinery, equipment etc. • Intangible: which can not be quantified for eg. Employees knowledge, trust, culture, ideas and capacities.
Substitutability 4. Imitability • Transparency • Transferability • Replicability .Resources and competitive advantage Resource Advantage can be divided into two categories: 1. Durability: short run or long run or whether their value will be appreciated or depreciated 2. Resource Scarcity 3.
. marketing strategies.Resource Advantage • Imitability is the rate at which a firm’s resource are copied or duplicated by the competitors. suppliers or market intermediaries. Competitors abilities to imitate includes copying the product design. scouting talented employees. features.
Product design.. • Transferability: it is the speed at which the competitors can copy the capabilities of firm. E. competencies and talent’s that indicates vulnerability for copying. technology etc.Resource Advantage . For e.g.g. Movie making .. Biscuits • Replicability: replicability is the competitors ability to use copied resource for the success of firm.. For e.g.Imitability • Transparency: Transparency is the degree of a company’s abilities.
It reflects ability of firm to combining assets. . people and processes to bring about the desired results. According to Hamel.Capabilities Organisational Capabilities are the skills that a firm employs to transform inputs into output. Organisational competence as a “Bundle of skills and technologies” which are integrated in people skills and business processes.
Core Competence .
Core competencies enables the firm to formulate strategies that compliments their capabilities and in turn they achieve their goals by earning profits.Core Competence Core competencies are a company’s resources and capabilities that enable the firm to gain competitive advantage over its competitors. For eg. Vodafone with their technology and financial resource tapped the rural market and gain significant market share. . market share and satisfy their employees.
Capabilities – Functional Area • • • • • • Financial Capability Marketing Capability Operations Capability Personnel Capability Information Management Capability General Management Capability .
. usage and management of funds and all allied aspects that have a bearing on an organisations capacity and ability to implement its strategies.Financial Capability Financial capability factors relate to the availability.
Strengths supporting Financial Capability • • • • • • • Access to financial resources Amicable relationship with financial institutions High level of credit worthiness Efficient capital budgeting system Low cost of capital as compared to competitors High level of shareholder’s confidence Tax benefits due to government policies .
promotion and distribution of products and services and all the allied aspects that have bearing on organisation’s capacity and ability to implement strategies: .Marketing Capability Marketing capability factors relate to the pricing.
Strengths supporting Marketing Capability • Wide variety and good quality products • Sharply focused positioning • Low prices as compared to competitors products • Effective distribution system • Effective sales promotion • High profile advertising • Effective marketing management system .
.Operations Capability Operations capability factors related to the production of products or services. the use of material resources.
Strengths supporting Operational Capability • • • • • • • • High level of capacity utilization Favorable plant location High degree of vertical integration Reliable sources of supply Effective control of operational costs Existence of good inventory control system Availability of high caliber R & D Personnel Technical Collaborations with reputed firms .
Personnel Capability Personnel Capability factors related to the existence and use of human resources and skills. .
5.Strengths supporting Personnel Capability 1. 4. Organization perceived as fair and model employer Excellent training opportunities and facilities Congenial working environment Highly satisfied and motivated workforce High level of orgn. 3. 2. 6. Loyalty Low level of absenteeism .
Information Management Capability Information management capability factors relate to the design and management of the flow of information from outside into and within an orgn. . For the purpose of decision making.
.Strengths supporting IT Capability • • • • • • • Ease and convenience of access to information sources Widespread use of computerized information systems Availability and operators ability to use high tech equipment Positive attitude of sharing information Wide coverage and networking Presence of foolproof information security systems Top management’s understanding of and support to IT and its application within organisation.
coordination and direction of the functional capabilities towards common goals.General Management Capability Refers to the integration. Important factors includes:- .
Strengths that support Gen. Capability • Effective system for corporate planning • Control. • Favorable corporate image . Mgnt. Reward and Incentive systems for managers • Entrepreneurial Orientation and Risk Taking Propensity • Good rapport with government.
it is instrumental in strategy formulation and selection.SWOT Analysis The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such. .
Swot Analysis Environmental Scan • / \ • Internal Analysis External Analysis • / \ / \ Strengths Weaknesses Opportunities Threats SWOT Matrix .
Strengths • A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: • patents • strong brand names • Product Differentiation .
For example. each of the following may be considered weaknesses: • lack of patent protection • a weak brand name • poor reputation among customers • high cost structure • lack of access to the best natural resources • lack of access to key distribution channels .Weaknesses The absence of certain strengths may be viewed as a weakness.
Weakness In some cases. Take the case in which a firm has a large amount of manufacturing capacity. a weakness may be the flip side of a strength. While this capacity may be considered a strength that competitors do not share. . it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
Opportunities • The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: • an unfulfilled customer need • arrival of new technologies • loosening of regulations • removal of international trade barriers .
Threats Threats Changes in the external environmental also may present threats to the firm. Some examples of such threats include: • shifts in consumer tastes away from the firm's products • emergence of substitute products • new regulations • increased trade barriers .
O strategies Threats S . a matrix of these factors can be constructed.T strategies . The SWOT matrix (also known as a TOWS Matrix) is shown below: Opportunities Strengths Weakness S .SWOT MATRIX / TOWS Matrix To develop strategies that take into account the SWOT profile.O strategies W .T strategies W .
• W-O strategies overcome weaknesses to pursue opportunities. • W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.SWOT Matrix • S-O strategies pursue opportunities that are a good fit to the company's strengths. • S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. .
It examines and enhances the efforts of business operations that contribute to the value of customers.Value Chain Analysis Value is the amount. delivery of product to the end customer and then after sale services. Value chain analysis views the business as a process of activities from the stage of raw material to the final stage. Enhancing value by contributing to quality. convenience and comfort . Reduce the cost 2. Aims at 1. buyer desire to pay for what a firm provides to them in the form of product / service / product cum service.
Value Chain Activities • Primary Activities • Support Activities .
transportation. storing.. stock control. storage. inventory management. issuing all kinds of raw materials and spare parts to mfrg sector.Primary Activities • Inbound Activities: concerned with receiving. material handling. .
Primary Activities Operations: process through which raw materials are transformed into finished products. 1) Product quality 2) Process. technology. scheduling of activities . Aims at creation and innovation for reducing cost and improving quality.
Concepts like Internet based Marketing which results in reduction of cost.Outbound Activities Concerned with distribution of good to Ultimate customer (direct marketing) or marketing intermediaries (indirect marketing) Activities includes: storage. I. Transportation. Negotiations with M. Warehousing. .
promotion mix. direct marketing marketing.Primary Activities Marketing and Sales: deciding upon pricing strategies. online marketing Telephone bookings. product mix. Also includes strategy like targeting total market or specified market. . free home deliveries. target market and channels of distribution. online reservations have reduced cost and increased convenience.
After Sale Services Pre – sale and post sale services are also valued by the customer. . Firms having good after sale services always enjoy better reputation among customers.
commitment • General Management: ability to forcast. employee empowerment.Support Services • Technology : Quality of Technology • Human Resource: Skill of employees. govt machinery . public relations. strategy formulation and implementation. leadership style • Infrastructure: financial resources. infromation system.
Environment Threat and Opportunity Profile (ETOP) • Analysis of environment information. Competitor. . Economic on the organisation. Glueck • Represents impact of each environmental factor like Societal. • Given by William F. data. and factors and determining opportunities and threats require a systematic technique. Technological.
ETOP • Continued emphasis on infrastructural facilities including telecommunications • Increase in educational level and income levels. people and funds . • Increase in business activity • Establishment of financing activities • Increased computerisation • Shortage of computer operators and engineers • Economic liberalisation allowed private banks to operate and compete • Shift from present banks to the newly established banks with modern facilities • Source of technology becoming obsolete • Less competition from existing banks • Strength of foreign banks in terms of technology.
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