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    BA401 - Analyzing The Internal Organization

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    Napat Inseeyong
    Analyzing a company's internal organization is important for three main reasons: 1) To understand the company's resources and capabilities in a global context in order to leverage them strategically, 2) To identify the company's core competencies that create competitive advantage and sustain high customer value, and 3) To help the company manage challenges like non-routine decision making and uncertainty. A company needs to identify its tangible and intangible resources and develop integrated capabilities and rare, valuable competencies through its value chain activities in order to achieve competitive advantage. Proper internal organizational assessment allows a company to make strategic decisions about developing and leveraging its resources, capabilities, and core competencies.

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    BA401 - Analyzing The Internal Organization

    Uploaded by

    Napat Inseeyong
    67 views4 pages
    Analyzing a company's internal organization is important for three main reasons: 1) To understand the company's resources and capabilities in a global context in order to leverage them strategically, 2) To identify the company's core competencies that create competitive advantage and sustain high customer value, and 3) To help the company manage challenges like non-routine decision making and uncertainty. A company needs to identify its tangible and intangible resources and develop integrated capabilities and rare, valuable competencies through its value chain activities in order to achieve competitive advantage. Proper internal organizational assessment allows a company to make strategic decisions about developing and leveraging its resources, capabilities, and core competencies.

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    Analyzing a company's internal organization is important for three main reasons: 1) To understand the company's resources and capabilities in a global context in order to leverage them strategically, 2) To identify the company's core competencies that create competitive advantage and sustain high customer value, and 3) To help the company manage challenges like non-routine decision making and uncertainty. A company needs to identify its tangible and intangible resources and develop integrated capabilities and rare, valuable competencies through its value chain activities in order to achieve competitive advantage. Proper internal organizational assessment allows a company to make strategic decisions about developing and leveraging its resources, capabilities, and core competencies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    67 views4 pages

    BA401 - Analyzing The Internal Organization

    Uploaded by

    Napat Inseeyong
    Analyzing a company's internal organization is important for three main reasons: 1) To understand the company's resources and capabilities in a global context in order to leverage them strategically, 2) To identify the company's core competencies that create competitive advantage and sustain high customer value, and 3) To help the company manage challenges like non-routine decision making and uncertainty. A company needs to identify its tangible and intangible resources and develop integrated capabilities and rare, valuable competencies through its value chain activities in order to achieve competitive advantage. Proper internal organizational assessment allows a company to make strategic decisions about developing and leveraging its resources, capabilities, and core competencies.

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    Analyzing the internal organization

    1. Importance of understanding internal organization


    a. Context of internal analysis
    i. Global mind-set
    1. Study internal environment with global culture context instead of
    dependence on assumption of single country
    ii. Analyze firm portfolio or resources and capability
    1. Understand how to leverage these bundles
    iii. Core competencies create and sustain its competitive advantage
    b. Value
    i. Measure by product performance by willingness to pay of customer
    ii. Develop core competencies  competitive advantage
    c. Challenge of analyzing IO
    i. Strategic decision is non-routine
    1. Have ethical implication
    2. Influence organization’s above average return
    3. Process
    a. Identify  develop  deploy  protect firm’s resources,
    capability and core competencies
    ii. Manager face uncertainty on many fronts
    1. Proprietary technology
    2. Changes in economic and political trends, societal value and shift
    in customer demand
    iii. Intraorganizational conflicts
    1. Due to decision about core competencies and how to nurture them

    d.
    i. Competitive advantage [CA] foundation
    1. Resources: tangible and intangibles bundling to create capabilities
    2. Capabilities
    a. Source of firm core competencies
    i. Integrated to achieve specific tasks
    3. Core competencies
    a. Capability serve as source to CA to compete over its rivals
    b. Distinctive differentiated from its competitors
    2. Tangible Vs. Intangible
    a. Tangible resources
    i. Seen, touched and quantified
    1. Equipment, facilities
    b. Intangible resources
    i. Rooted deeply in firm’s history = accumulated over time
    1. Knowledge, brand name, internally generated asset = innovation
    3. Building core competencies
    a. Criteria
    i. 4 specific criteria of sustainable CA
    1. Valuable
    2. Rare
    3. Costly-to-imitate
    4. Non-substitutable capabilities
    ii. Value chain analysis
    1. Primary activities [customer facing activities]
    a. Involve physical creation, sale and distribution to buyer
    b. Activities
    i. Service
    ii. Marketing
    iii. Outbound/inbound
    iv. Logistic
    v. Operation
    2. Support activities [non-customer facing activities]
    a. Provide assistance necessary for primary activities to take
    place
    b. Activities
    i. Infrastructure, HRM, technologies development
    4. Creating value through value chain activities
    a. Supply chain management: receive raw material and covert into final
    product
    i. Sourcing  procurement  conversion  logistic
    ii. Primary activities
    1. Operation: change raw material into finished product
    a. Developing employee’s work schedule
    b. Designing production processes and physical layout of
    operation’s facilities
    c. Determine production capacity needs
    d. Selecting and maintaining production equipment
    e. Training and supporting a sale force
    2. Outsourcing: purchase of value creating activity from external
    supplier
    a. Increase flexibility, risk mitigation and capital investment
    reduction
    b. Firm must outsource when they cannot create value or at
    substantial disadvantage compared to competitor
    c. However, it can cause concern like
    i. Lack of innovation abilities
    ii. Loss of jobs
    iii. Distribution: getting final product to customer
    1. Handling customer order
    2. Choosing optimal delivery channel
    3. Working with finance support function for customer payment
    arrangement
    iv. Follow-up service: activities taken to increase a product value for
    customer
    1. Survey to receive feedback about customer’s satisfaction
    2. Offering technical support after the sale
    3. Fully complying with product’s warranty
    b. Supporting activities
    i. Finance: effectively acquiring and managing financial resources
    1. Securing adequate financial capital
    2. Investing in other function to support firm effort to produce and
    distribute its product in short and long run
    ii. Human resources: manage firm human capital [employee] to create a
    capability and core competencies
    1. Selecting  training  retaining  compensating
    iii. Management information system: action to obtain information and
    knowledge throughout firm
    1. Identify and utilize sophisticated technologies
    2. Determining optimal ways to collect and distribute knowledge
    3. Linking relevant information and knowledge to organizational
    function
    5. Internal organizational assessment and strategic decision
    a. Identify SW
    b. Then identify appropriate level of resources and capabilities needed to develop
    strategy and create value for customer
    i. By using tools that help firm focusing on core competencies
    1. Outsourcing
    c. Core competencies can become core rigidities
    i. When it is no longer competitiveness  become weakness

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