100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary OBS310 Block 3 R60,00
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Pretoria (UP)
  4.  
  5. OBS310 (OBS310)

Summary

Summary OBS310 Block 3

 0 purchase

The analytic spotlight will be trained on six questions: 1. How well is the company’s present strategy working? 2. What are the company’s most important resources and capabilities, and will they give the company a lasting competitive advantage over rival companies? 3. What are the company�...

[Show more]

Preview 2 out of 12  pages

Document information

  • April 20, 2023
  • 12
  • 2022/2023
  • Summary

Subjects

Written for

All documents for this subject (3)

Seller

avatar-seller
alyshagurnell

Reviews received

Content preview

BLOCK THREE: INTERNAL ENVIRONMENTAL ANALYSIS

The analytic spotlight will be trained on six questions:

1. How well is the company’s present strategy working?
2. What are the company’s most important resources and capabilities, and will they give the company a lasting
competitive advantage over rival companies?
3. What are the company’s strengths and weaknesses in relation to the market opportunities and external
threats?
4. How do a company’s value chain activities impact cost structure and customer value proposition?
5. Is the company competitively stronger or weaker than key rivals?
6. What strategic issues and problems merit front burner managerial attention?



1. How well is the company’s present strategy working?
→ The first thing to examine is the company’s competitive approach. What moves has the company made
recently to attract customers and improve its market position – cut prices, improved design, added new
features, stepped up advertising, entered new geographical region, merged with competitor.
→ Identifying the Components of a Single- Business Company Strategy




→ 3 indicators of how well a company’s strategy is working are:
(1) Whether the company is achieving its stated financial and strategic objectives
(2) Whether its financial performance is above the industry average
(3) Whether its is gaining customers and market share

, → Specific indicators of how well a company’s strategy is working includes:
 Trends in the company’s sales and earnings growth
 Trends in the company’s stock price
 The company’s overall financial strength
 The company’s customer retention rate
 The rate at which new customers are acquired
 Evidence of improvement in internal processes such as defect rate, order fulfilment, delivery times,
days of inventory, and employee productivity.
→ The stronger a company’s current overall performance the more likely it has a well-conceived, well executed
strategy. The weaker a company’s financial performance and market standing, the more its current strategy
must be questioned and the more likely the need for radical changes.

Strategic Management Principle:
Sluggish financial performance and second-rate market accomplishments almost always signal weak strategy, weak
execution, or both


2. What are the company’s most important resources and capabilities, and will they give the company a lasting
competitive advantage over rival companies?
→ A company’s resources and capabilities are its competitive assets and determine whether its competitive
power in the marketplace will be impressively strong or disappointingly weak. Competitive assets are what a
firm’s strategy depends on to develop sustainable competitive advantage over its rivals.
→ Def. Resources and Capability analysis is a powerful tool for sizing up a company’s competitive assets and
determining whether the assets can support a sustainable competitive advantage over market rivals.
→ Resource and capability Analysis is a Two Step Process:
1) Identify the company’s resources and capabilities.
2) Examine them more closely to ascertain which are the most competitively important and whether
they can support a sustainable competitive advantage over rival firms.
(four tests of a resource’s competitive power)

1.) Identify the company’s resources and capabilities.
→ Def. Resource is a competitive asset that is owned or controlled by a company.
→ A resource is a productive input or competitive asset that is owned or controlled by the firm. Firms have
many different types of resources at their disposal that vary not only in kind but in quality as well.
→ Def. Capability (or Competence) is the capacity of a firm to perform some internal activity competently.
Capabilities are developed and enabled through the deployment of a company’s resources.
→ Types of Resources:
o Tangible Resources:
 Physical resources
 Financial Resources
 Technological Resources
 Organisational Resources
o Intangible Resources
 Human Assets and intellectual capital
 Brands, company image, reputational assets
 Relationship
 Company culture and incentive system
→ Identifying Capabilities
o Def. Organisational Capability Is the intangible but observable capacity of a firm to perform a
critical activity proficiently using a related combination (cross-functional bundle) of its resources,
is knowledge-based, residing in people and in a firm’s intellectual capital or in its organizational
processes and systems, embodying tacit knowledge

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller alyshagurnell. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R60,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling
R60,00
  • (0)
Add to cart
Added