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1、,Chapter 3,Internal,Environment,Chapter 2,External,Environment,The Strategic Management Process,Strategic Intent,Strategic Mission,Strategic,Competitiveness,Above Average,Returns,Feedback,Strategy Formulation,Chapter 4,Business-Level,Strategy,Chapter 5,Competitive,Dynamics,Chapter 6,Corporate-Level,
2、Strategy,Chapter 8,International,Strategy,Chapter 9,Cooperative,Strategies,Chapter 7,Acquisitions &,Restructuring,Strategy Implementation,Chapter 10,Corporate,Governance,Chapter 11,Structure,& Control,Chapter 12,Strategic,Leadership,Chapter 13,Entrepreneurship & Innovation,Strategic,Actions,Discover
3、ing Core Competencies,How do we assemble bundles of Resources, Capabilities and Core Competencies to create VALUE for customers?,Will environmental changes make our core competencies obsolete?,And.,Are substitutes available for our core competencies?,Are our core competencies easily imitated?,Key Qu
4、estions for Managers in Internal Analysis,Discovering Core Competencies,What a firm has to work with:,its assets, including its people and the value of its brand name,What a firm Has.,Resources,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees
5、, brand names, finances and talented managers,What a firm Has.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources represent inputs into a fir
6、ms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,“Some genius invented the Oreo. Were just living off the inheritance.”,F. Ross Johnson, Former President & CEO, RJR Nabisco,What a firm Has.,Resources,Tangible Resources,What a firm Has
7、.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,Intangible Resources,“Some genius invented the Oreo
8、. Were just living off the inheritance.”,F. Ross Johnson, Former President & CEO, RJR Nabisco,Resources,Discovering Core Competencies,What a firm Does.,Capabilities,What a firm Does.,Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships betw
9、een a firms tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firms employees.,Capabilities,What a firm Does.,Capabilities represent:,the firms capacity or ability to integrate individual firm
10、resources to achieve a desired objective.,Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and know
11、ledge as carried out by the firms employees.,Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage.,Capabilities,Discovering Core Competencies,“are the essence of what makes an organ
12、ization unique in its ability to provide value to customers.”,Leonard-Barton, Bowen, Clark, Holloway & Wheelwright,McKinsey & Co. recommends identifying three to four competencies to use in framing strategic actions.,Core Competencies,Discovering Core Competencies,* Outsource,For a strategic capabil
13、ity to be a Core Competency, it must be:,Core Competencies,What a firm Does.,that is Strategically Valuable,Valuable,Rare,Costly to Imitate,Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social complexity,Capabilities that are no
14、t possessed by many others,Capabilities that help a firm neutralize threats or exploit opportunities,Core Competencies,What a firm Does.,that is Strategically Valuable,What Criteria Make Core Competencies Costly to Imitate?,Unique Historical Conditions,Causal Ambiguity,Social Complexity,This occurs
15、when competitors are unable to detect how a firm uses its competencies as a foundation for competitive advantage,Occurs when the firms capabilities are the result of complex social phenomena, such as interpersonal relationships, trust and friendships among managers or a firms reputation with supplie
16、rs and customers,Example:,Disney created Mickey Mouse at a time when animated motion pictures were new,An unusual evolutionary pattern of growth may contribute to the development of competencies in a manner that is unique to those particular circumstances,Core Competencies must be:,Nonsubstitutable,Capabilities that do not have strategic equivalents, such as firm-specific knowledge or trust-based relationships,What a firm Does.,t
