Summary
Summary: Anaylsing the internal environment BMNG7311
- Institution
- Varsity College
Summary for Chapter 7, For Business Management 3A, 3rd Year
[Show more]
1 review
By: luckydodi • 3 year ago
Content preview
Chapter 7 Analysing the internalenvironment
Introduction
• The rise of the so-called ‘resource-based view’ (RBV) of the organisation springs
from the strategic importance of understanding why organisations differ from each
other, and why certain organisations are more successful and more profitable than
others (Collis & Montgomery, 2005:27).
• Competitive advantage, or the lack thereof, is generally better explained by
understanding the distinctive resources and capabilities of the firm than by
understanding only its external environment.
The strategic importance of resources and capabilities
The basis of the RBV:
• Resources and capabilities determine the strategic direction of the organisation.
• Resources and capabilities are the primary sources of profit for the firm.
• Industry positioning does not explain differences in profitability between firms.
Types of rent:
• Ricardian rents are rents associated with unique resources and capabilities, e.g.
location.
• Monopoly rents are associated with a unique position in the market place, e.g.
Eskom is South Africa’s only licensed electricity utility.
• Schumpeterian rents refer to those returns appropriated by the organisation
because of a new or innovative product that allows it temporarily to charge a price
high above costs of production.
, Exploitability
• Concentrating resources
• Converging resources on a few selected strategic goals
• Focusing efforts on single priorities sequentially
• Targeting highest impact activities first
• Accumulating resources
• Mine experience to learn as quickly as possible
• Borrowing from other organisations
• Complementing resources
• Blending by linking capabilities
• Balancing
• Conserving resources
• Recycling
• Co-opting through collaboration
The benefits of buying summaries with Stuvia:
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
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
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 vikshabaldoo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now