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UNIT 4
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CASE STUDY ??
SWOT analysis
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Organizational capability rests on
an organization's capacity and
ability to use its competencies to
excel in a particular field, thereby
giving it strategic advantage.
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DEVELOPMENT
OF
STRATEGIC ADVANTAGE
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ORGANISATIONAL RESOURCES
Resources based view of internal
environment or resource base theory Resources: Tangible and Intangible
(Barey-1991) All assets,capabilities,organizational
processes,information,knowledge etc.
Costly to Non
Valuable Rare
Imitate Substitutable
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ORGANISATIONAL RESOURCES + ORGANISATIONAL BEHAVIOUR
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https://www.investopedia.com/terms/s/synergy.asp
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SYNERGYSTIC EFFECT
Core Competencies
(Unique resources, Core capabilities, Distinctive Competence (exclusive)
Invisible aseets,Embeded knowledge)
• Two wheeler-more fuel efficient
• Niche creation
C.K.Prahlad & Gary Hamel
Core competence-the collective learning
Canon:Optics,imaging,microprocessor controls
Sony:Miniaturisation
Philips: Optical media
3M’s:Stick tape
Honda:Engine,power trains
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Analogy of a tree by Prahlad & Hamel
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COMPETENCIES
Outcome of organization's knowledge base
ORGANISATIONAL CAPABILITY (क्षमतत) Organisational capability is measured
It is the inherent capacity or potential of an and compared through the process of
organisation to use the strength and overcomes its organizational appraisal.
weaknesses in order to exploit the opportunities and
face the threats in its external environment.
Strategic factors,
Strategic advantage factors,
Corporate competence factors
STRATEGIC ADVANTAGE
COMPETITIVE ADVANTAGE
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FUNCTIONAL AREAS OF AN ORGANISATION
1. Finance
2. Marketing
3. Operations
4. Personal
5. Information
6. General Management
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Financial Capability
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Financial Capability
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Marketing Capability
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Operations Capability
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Personnel Capability
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Information Management Capability
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General Management Capability
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CONSIDERATIONS IN ORGANISATIONAL ANALYSIS/APPRAISAL
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INTERNAL ANALYSIS
1. VRIO FRAMEWORK
A. VALUABLE
B. RARE
C. INIMITABLE
D. ORGANISED FOR USE
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2.VALUE CHAIN
Porter (1985):Value Chain Framework
A value chain is a set of inter linked value creating activities performed by an organization.
T EM
SYS
LUE
VA
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VALUE CHAIN OF A MANUFACTURING FIRM
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3.QUANTITATIVE ANALYSIS 4.QUALITATIVE ANALYSIS
i. Financial Analysis
ii. Non –Financial Analysis 5.COMPARATIVE ANANLYSIS
i. Historical Analysis
ii. Industry Norms
iii. Benchmarking
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6.COMPREHENSIVE ANALYSIS
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R D
CA
RE
CO
S
E D
NC
L A
BA
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STRUCTURING ORGANISATIONAL APPRAISAL
Glueck: Strategic Advantage Profile (SAP)
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ST
R AT
EG
IC
AD
SM
VA
N TA
GE
PR
OF
IL
E
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