INTERNAL ENVIRONMENT

SCANNING BS4
Pushkar Bajracharya
RESOURCE BASED APPROACH TO
ORGANISATIONAL ANALYSIS
CORE AND DISTINCTIVE COMPETENCIES
 Resources are an organization’s assets and are thus the basic
building blocks of the organization
 Capabilities refer to a corporation’s ability to exploit its
resources. They consist of business processes and routines
that manage the interaction among resources to turn inputs
into outputs.
 competency is a cross-functional integration and
coordination of capabilities.
 core competency is a collection of competencies that crosses
divisional boundaries, is widespread within the corporation,
and is something that the corporation can do exceedingly
well.
BARNEY’ VRIO FRAMEWORK OF
ANALYSIS
1. Value: Does it provide customer value and competitive
advantage?
2. Rareness: Do no other competitors possess it?
3. Imitability: Is it costly for others to imitate?
4. Organization: Is the firm organized to exploit the
resource?
COMPARISON
 The company’s past performance,
 The company’s key competitors, and
 The industry as a whole.
 The international standards
 Expert standards
DETERMINING THE SUSTAINABILITY OF
AN ADVANTAGE
 Durability
 Imitability

-Transparency
-Transferability
-Replicability
BUSINESS MODELS
A business model is a company’s method for making
money in the current business environment.
 Who it serves

 What it provides

 How it makes money

 How it differentiates and sustains competitive advantage

 How it provides its product/service

BUSINESS MODELS..
 Customer solutions model
 Profit pyramid model

 Multi-component system/installed base model

 Advertising model

 Switchboard model

 Time model

 Efficiency model

 Blockbuster model

 Profit multiplier model

 Entrepreneurial model

 De Facto industry standard model

VALUE-CHAIN ANALYSIS
A value chain is a linked set of value-creating activities
that begin with basic raw materials coming from
suppliers, to a series of value-added activities involved
in producing and marketing a product or service, and
ending with distributors getting the final goods into the
hands of the ultimate consumer.
INDUSTRY VALUE-CHAIN ANALYSIS
 upstream and downstream segments
 vertical integration
CORPORATE VALUE-CHAIN ANALYSIS
 Examine each product line’s value chain in terms of the
various activities involved in producing that product or
service
 Examine the “linkages” within each product line’s value
chain
 Examine the potential synergies among the value chains
of different product lines or business units
SCANNING FUNCTIONAL RESOURCES
AND CAPABILITIES
Organisational structures
 Simple

 Functional

 Divisional

 Matrix

 Committee

 Strategic business units (SBUs)

 Conglomerate
CORPORATE CULTURE
 It is the company way.
 Corporate culture is the collection of beliefs,
expectations, and values learned and shared by a
corporation’s members and transmitted from one
generation of employees to another.
 Cultural integration is the extent to which units
throughout an organization share a common culture.
FUNCTIONS OF CORPORATE CULTURE
 Conveys a sense of identity for employees.
 Helps generate employee commitment to something
greater than themselves.
 Adds to the stability of the organization as a social
system.
 Serves as a frame of reference for employees to use to
make sense of organizational activities and to use as a
guide for appropriate behavior.
 Corporate Culture shapes behaviour.
STRATEGIC MARKETING
 Market Position and Segmentation
 Marketing Mix

 Product Life Cycle

 Brand and Corporate Reputation

 Market share, size, growth, position, trends

STRATEGIC FINANCIAL
 Financial Leverage
 Capital Budgeting

 Source, amount, costs of funds, mix, potential ability and

sources
STRATEGIC RESEARCH AND
DEVELOPMENT (R&D)
 R&D Intensity, Technological Competence, and
Technology Transfer
 R&D Mix
SS CURVE
STRATEGIC OPERATIONS
 Manufacturing systems
 Experience Curve

 Flexible Manufacturing for Mass Customization

 Economies of scale

 Production trend, types, productivity, inputs, outputs,

categories, costs
STRATEGIC HUMAN RESOURCE (HRM)
 Basic HR management
 Increasing Use of Teams

 Union Relations and Temporary/Part-Time Workers

 Quality of Work Life and Human Diversity

 No., productivity, costs, turnover, quality, attitude,

motivation
VIRTUALISATION (HRM)
 Flatter organizational structures with increasing cross-
functional coordination need
 Turbulent environments requiring more inter-
organizational cooperation
 Increasing employee autonomy and participation in
decision making
 Higher knowledge requirements derived from a greater
emphasis on service
 Increasing globalization of trade and corporate activity
STRATEGIC INFORMATION
SYSTEMS/TECHNOLOGY
 Impact on Performance
 Supply Chain Management

 Synthesis of factors