Académique Documents
Professionnel Documents
Culture Documents
Ch 04, Ch 05 & Ch 07
0
Lec : 06 Ch 04 "Internal Assesment"
Internal Organization from within --- Distinctive competences
Core Cometenc! "istincti#e cometenc!
A thing that organization is doing
exceedingly well
$ uch as:
R&D !eams commitment
customer care distri"ution
channels
As the core competency # "etter
than others
$ %rm strength that cannot "e
matched or imitated "y
competitors&
'ources:
() *eritage
+) ,erger & ac-uisition
.) strategic alliance
/mpirical Indicators:
() Rare
+) *ard to imitate
3. 0ot easily su"stituta"le
%r&ani'ational $(ccess 1!wo dimensions 'chools1
- IO 2industrial organization perspective& 3 external is more important
- R45 2Resource "ased view& 3 internal is more important
R45
2Organizational
success&
/xternal 2IO& Internal 2R45& 6
+78 978
'ources of Distinctive :ompetency
- ;hysical
- Organizational
- *R
)ra*itional $o(rces are the +ollo,in&:
-. /ro*(ct 0 ser#ice:
;roduct life cycle "ecame very short need for creativity new ideas 2*R&
1. )echnolo&!:
,4A - 'trategic ,anagement :ourse 0otes
Ahmed ,) *assan
(+7<+7((
1
Low Distinctive Competency High Distinctive Competency
Easy Hard
!hose who sell the technology for you also sell it for your competitors
0ew !echnology =ho will operate>
=ho will maintain>
=ho will develop>
!echnology advancement re-uire new s?ills 2intellectual capital&
2. Economies o+ $cale:
- 4efore 1,ass production1 @ one %ts all
- 0ow 1,ass customization1 @ one on one
- 'pecial 0eeds for intellectual capital
4. /rotecte* 3ar4ets:
- 0o protected mar?ets any more
- 4orderless mar?ets
- '?y is open need for the culture of competition 2*R&
Assets make things possible, People make things happenA
'ee Internal Bactors /valuation 2IB/& example for Cateway computers in slide D EFGit
is very nice
=e have three main elements in organization
- ;eople
- ;roduct
- ;rocess
Well done is better than well said
$(ccess +actor o+ or&ani'ations
/xternal Bactors Internal Bactors
IO R45
/Hectiveness /Iciency 2outputinputs&
Distinctive :ompetency
2"e diHerent from
competitors&
#ve or -ve
:ulture De%nition J !he way we do things around here 2what is rightwrong&
:ulture J cultivate 2proper place to grow things&
!here are three ways to do things around here:
() !he right way
+) !he wrong way
.) Our way 2the company way
"Culture is acquired not inherited"
E&!tian C(lt(re nee*s:
- :ulture of completion
2
- Bocus on -uality
- /ncourage ethical practice
- ;ersonal accounta"ility
3
Drivers 2,otives& ;eople human resources 4ehavior
$If you want to change the 5eha#ior change the *ri#ersA)
"ri#ers can 5e:
- Reward systems
- *ow we de%ne and treat losers winners
- =ho are the role models>
- !he structure
- Bear and freedom
4
Lec : 06 & 07: Ch 05 "$trate&ies in
Action"
-
st
3o#er A*#anta&e
- !he %rst "ird ta?es the worm) !he second mouse ta?es the cheese
- In :hessK the %rst mover forces the competitor to react to his moves 2reactive&)
6ran* strate&ies 72 "irection 3o*el8
- Crowth
- 'ta"ility
- Retrenchment
6ro,th $ta5ilit! 9etrenchment
Adding new
"usinesses
,aintain increase ,L! share :ut into pieces
2cut drop
"usinesses&
,ar?et still "ooming 2not
saturated&
0ew product 'ame product
0ew mar?et 'ame mar?et
*igh R&D Blat R&D
*igh Investment Blat investment
*igh competition 'ta"le environment
,&AK IntegrationK
'trategic AlliancesK
Moint ventures
mar?et penetration 4an?ruptcyK sell outK
divestK li-uidation
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$(mmar! o+ "$trate&ies :s< Cate&ories"
I Inte&ration 24uy ,anufacture sell&
- Borward 2distri"ution&
- *orizontal 2:ompetitors&
- 4ac?ward 2suppliers&
- 'ee? a strategic %t J (#(N + synergy 2OPQR STU VQW XR &
- Anti-trust laws JJ Against monopoly
II Intensi#e $trate&ies
- ,ar?et penetration --- more considered to "e sta"ility strategy
- ,ar?et development --- 4orderless mar?ets
- ;roduct Development --- 'hort ;roduct Yife :ycle 2;Y:&
III "i#ersi=cation $trate&ies
20ew prodK new ,L!& Do not put all eggs in one "as?et:
- :oncentric Diversi%cation --- 2expanding in the same line of "usiness&
- :onglomerate Diversi%cation --- 2holding company&
- *orizontal Diversi%cation --- new unrelated to same customers
I:"e+ensi#e $trate&ies
- Retrenchment --- :ost and asset reduction to reverse declining pro%ts 2wor?
outJ loosing fat&
- Divestiture ---- use Mac? =elsh ,atrix 2C/&
- Yi-uidation ---- 'elling company assets in parts
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"etails o+ "$trate&ies :s< Cate&ories"
:ertical Inte&ration $trate&ies 2Cain :ontrol Over: Distri"utorsK 'uppliersK and
:ompetitors&
1. For,ar* Inte&ration 76ain Control %#er ..."istri5(tors, 9etailers8
6(i*elines:
o :urrent distri"utors 3 expensive or unrelia"le
o Availa"ility of -uality distri"utors 3 limited
o Birm competes in industry expected to grow mar?edly
o Birm has "oth capital & *R to manage new "usiness of distri"ution
o :urrent distri"utors have high pro%t margins
1< >ac4,ar* Inte&ration 7%,nershi or Control .. Firm?s s(liers8
6(i*elines:
o :urrent suppliers 3 expensive or unrelia"le
o D of suppliers is smallZ D competitors is large
o *igh growth in industry sector
o Birm has "oth capital & *R to manage new "usiness
o 'ta"le prices are important
o :urrent suppliers have high pro%t margins
2< @ori'ontal Inte&ration 7%,nershi or Control ..Firm?s cometitors8
6(i*elines:
o Cain monopolistic characteristics wo federal government challenge
o :ompetes in growing industry
o Increased economies of scale 3 ma[or competitive advantages
o Baltering due to lac? of managerial expertise or need for particular
resource