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Ke y I n t e r n a l Fo r c e s
A firms strengths that cannot be easily matched or imitated by
competitors are called distinctive competencies. Building
competitive advantages involves taking advantage of distinctive
competencies.
For
example,
3M
exploits
its
distinctive
process
of
Representative
throughout
the
performing
managers
firm
an
and
need
to
external
employees
be
audit.
from
involved
in
the
finance/accounting,
firms
management,
production/operations,
marketing,
research
and
fit
into
the
whole
that
has
been
developed
by
an
and
evaluation
activities
result
being
confusion
and
disorientation
Description
Stage of StrategicManagement
Process When Most
Important
Planning
Strategy Formulation
Organizing
Strategy Implementation
Leading
Strategy Implementation
Controlling
Strategy Evaluation
in
the
functional
area
of
anticipating,
creating,
and
fulfilling
The functions of
finance comprise three decisions: (1) the investment decision, (2) the
financing decision, and (3) the dividend decision. Financial ratio
analysis is the most widely used method for determining an
organizations
strengths
and
weaknesses
in
the
investment,
areas
in
production
is
essential
to
Audit
Research and Development
The fifth major
area of internal
operations that should
Department
Analysis
be examined for specific strengths and weaknesses
is research and development (R&D). Many firms
today conduct no R&D, and yet many other
companies (e.g., drug firms) depend on successful
R&D activities for survival. These organizations
invest in R&D because they believe that such an
investment will lead to a superior product or
service and will give them competitive advantages.
Audit
Management Information Systems Analysis
(MIS)
Information represents a
major source of competitive
management advantage or disadvantage. A
management information systems purpose is to
improve the performance of an enterprise by
improving the quality of managerial decisions. An
effective information system thus collects, codes,
stores, synthesizes, and presents information in
such a manner that it answers important operating
and strategic questions. The heart of an
information system is a database containing the
kinds of records and data important to managers.
Assessing
a
firms
internal
strengths
and
weaknesses in information systems is a critical
dimension of performing an internal audit.
own
value
chain
operations
but
also
their
firm
determines
the
costs
associated
with
manufacturing
products.
VCA
product(s)
aims
to
to
identify
marketing
where
those
low-cost
or
improving
upon
those
best
practices.
activities
where
rival
firms
have
comparative
among
of
the
those
factors
areas.
included
thorough
is
more
is
an
internal
strength
or
weakness,
factors
Step 3-