资源共享课程：商务分析chapter4-strategic-capability24-Strategic-capability课件.ppt

1、1 IntroductionThe importance of strategic capability is the focus ofthis chapter.There are three key concepts that underpin thediscussion:Organizations are not identical,they have differentcapabilities;it is difficult for one organization to obtain or copy thecapabilities of another andthe competiti

2、ve advantage achieved by an organizationis based on the capabilities that its rivals dont have orhave difficult in obtaining.These three concepts underlie what has becomeknown as the resource-based view of strategy.Resource-based view of strategy:thecompetitive advantage and superior performanceof a

3、n organization is explained by thedistinctiveness of its capabilities.The chapter has six sectionsFoundations of strategic capabilitiesVital basis of strategic capabilitiesCost efficiencyWhat sort of capabilities alloworganizations to sustain competitiveadvantageOrganization knowledge related tocapa

4、bilitiesDifferent ways to analyzecapabilitiesHow to develop strategic capabilities2 Foundations of strategic capabilitiesStrategic capability can be defined as theresources and competences of an organizationneeded for it to survive and prosper.The process of analyzing and assessing theorganizations

5、resources and competences iscalled position audit.Capabilities for competitive advantageThresholdcapabilitiesCore competencesUnique resourcesTangibleIntangibleCompetencesThresholdcompetencesResourcesThreshold resourcesTangibleIntangible2.1 Strategic capabilitiesand competitive advantageResourceTangi

6、bleIntangiblePhysical resources,such as machinesbuildingsFinancial resources,such as capital and cashHuman resourcesIntellectual capital,e.g.patents and brandsThreshold capabilities-some terminologiesTermStrategic capabilityDefinitionThe ability toperform at the levelExampleEquipment an athleticabil

7、ity suited to arequired to survive or chosen eventprosperThreshold resourcesThe resources neededto meet customersminimumrequirementsA healthy bodyMedical facilities andpractitionersFood supplementsThresholdcompetencesUnique resourcesCore competenceActivities andprocesses needed tomeet customersminim

8、umrequirementsResources that underpincompetitive advantageand are difficult forcompetitors to imitateActivities thatunderpin competitiveadvantage and aredifficult to imitateIndividual trainingregimesInjury managementDiet planningExceptional heart andlungsHeight or weightA combination ofdedication,te

9、nacity,timeto train,demanding levelof competition and a willto win3 Vital basis of strategic capabilities-Cost efficiencyCost efficiencyManagers often refer to the management of costs as akey strategic capability.However,for many organizations,the management ofcosts is becoming a threshold strategic

10、 capability fortwo reasons:Everyone is forced to keep price as low as possible;Competitive rivalry will continually drive down theprice.Cost efficiencyEconomies ofscaleSupply costsExperienceProducts/processdesignSources of cost efficiencyEconomies of scale is very important in manufacturingindustry,

11、such as automobile.Supply costs can be important.For example,retailerspay a great deal of attention to trying to achieve lowercosts of supply than their competitorsProduct/process design also influence costs.Forexample,in photocopier market,Canon eroded Xeronsadvantage by designing a copier that nee

12、ded far lessservicing.Experience.4 Strategic capability and sustainable competitiveadvantageOnly strategic capabilities with such characteristics canhelp obtain sustainable competitive advantage.Managers often claim that hypercompetitive conditionsare becoming increasingly prevalent.So,moreemphasis

13、has to be placed on the organizationscapability to change,innovate,to be flexible and tolearn how to adapt to a rapidly changing environment.Dynamic capabilities are such capabilities anorganization has to renew and recreate its strategiccapabilities to meet the needs of a changingenvironment.Rarity

14、DistinctiveValue to buyersProvide value emphasized by customersEase of transferabilitySustainabilityCore rigiditiesInimitableCore competencesNon-substitutabilityCriteria forcapabilitiesto obtainsustainablecompetitiveadvantage5 Organizational knowledgeOrganizational knowledgeOrganizational knowledge

15、is the collectiveexperience accumulated through systems,routines,and activities of sharing across theorganizations.Two points should be highlighted here:Explicit and tacit knowledge.Explicit knowledge is codified and objective knowledgetransmitted in formal systematic ways.Tacit knowledge is persona

16、l,context specific andtherefore hard to formalize and communicate.Arguably,the more formal and systematic the system ofknowledge,the greater is the danger of imitation,andtherefore the less valuable the knowledge becomes incompetitive strategy terms.Managing the explicit knowledge1.Data,Information

17、and Knowledge Data,typically consists of individual facts,but in a business context may include more complex items,such as opinions,reactions,beliefs,et al.Information,is data that is organized in some useful ways.Knowledge,tends to originate in the discovery of trends or patterns in information.Dat

18、aInformationKnowledgeNatureFactsRelationships between processed factsPatters discerned in informationImportance of contextTotalSomeContext independentImportance to businessMundaneProbably useful for managementMay be strategically usefulWays to acquire knowledge:Education and trainingExperience of wo

19、rkObservation of othersInformation exchange such as coaching and braining stormPurpose for creating knowledge:Comparison with earlier experience Consequences:the implication of informationConnections:relationships btw.ItemsConversation:discussion with othersKnowledge Management(KM)KM is the process

20、by which organizations generate value from their intellectual and knowledge-based assets.Involving:Discovering or Identifying knowledge Distributing knowledge Capture knowledge Using knowledgeSharing knowledge Maintaining knowledgeValue chain and value networkBenchmarkingSWOT6 Diagnosing strategic c

21、apability6.1 The value chainValue chain describes the activities of the organizationthat add value to the purchased inputs.Primaryactivities are involved in the production of goods andservices.Support activities provide necessary assistance.Linkages are the relationship between activities.Primary ac

22、tivities:Inbound logistics are activities concerned withreceiving,storing and distributing inputs to the productor service.Operations transforms these inputs into the finalproduct or serviceOutbound logistics collect,store and distribute theproduct to customersMarketing and sales provide the means w

23、herebycustomers are made aware of productsService includes those activities that enhance ormaintain the value of a product or service,such asinstallation,repair,and training.Support activitiesProcurement.The processes that occur in many parts ofthe organization for acquiring the various resourceinpu

24、ts to the primary activities.Technology development.Human resource management.Infrastructure.The formal system of planning,finance,quality control,information management,and thestructures and routines that are part of an organizationsculture.Linkages connect the activities of the valuechain.(1)Activ

25、ities in the value chain affect one another(2)Linkages require co-ordinationSteps in Value Chain AnalysisValue chain analysis can be broken down into athree sequential steps:Break down a market/organization into its keyactivities under each of the major headings in themodel;Assess the potential for

26、adding value via costadvantage or differentiation,or identify currentactivities where a business appears to be at acompetitive disadvantage;Determine strategies built around focusing on activitieswhere competitive advantage can be sustainedFurther analysis of value chainThe firms margin or profit th

27、en depends on itseffectiveness in performing these activities efficiently,so that the amount that the customer is willing to pay for the products exceeds the cost of the activities in the value chain.It is in these activities that a firm has the opportunity to generate superior value.A competitive a

28、dvantage may be achieved by reconfiguring the value chain to provide lower cost or better differentiation.The value network is the set of inter-organizational links and relationships thatare necessary to create product or service.An organization needs to be clear about whatactivities it ought to und

29、ertake itself and which it should not and,perhaps,should outsource.6.2 Value networkOrganizationsvalue chainSuppliervalue chainChannelvalue chainCustomervalue chainManagers should understand the bases of theirorganizations strategic capabilities in relation tothe wider value network.Four key issues

30、are:(1)Which activities are centrally important to anorganizations strategic capability and which lesscentral?(2)Where are the profit pools?Profit pools refer to thedifferent levels of profit available at different parts ofthe value network.For example,software has beenmore profitable than hardware

31、in computer industry.(3)The make or buy decision for a particular activity orcomponentPartnering.Who might be the best partner in theparts of value network?A partner or supplier?Core competence is the basis for the company to createvalue in a way that the competitors cant imitate.Non-core activities

32、 should be out-sourced so that thecompany can concentrate on the core activities.Value network joins the value chain of an organizationto those of the suppliers and customers.Vertical integrationGood relationship may promote the innovation andcreation of knowledge.6.3 Summary of value chain and valu

33、e networkBenchmarking is the establishment of targets andcomparator that permit relative levels of performance tobe identified.There are different approaches to benchmarking:Historical benchmarkingIndustry/sector benchmarking-comparative performanceof other organizations in the same industry.Best-in

34、 class benchmarking.For example,a police forcewishing to improve the way in which it responded toemergency telephone calls studied call centre operationsin the banking and IT sectors.6.4 BenchmarkingBenchmarking also has dangers too:Measurement distortion.Benchmarking can lead to asituation where yo

35、u get what you measure and this maynot be what is intended strategically.It can therefore,result in unintended or dysfunctional behavior.Surface comparisons.For example,it may demonstratethat one organization is poorer at customer service thananother but not show the underlying reasons.However,if we

36、ll directed it could encourage managers to seek outthese reasons and hence understand how competencescould be improved.Outputs:the product portfolioThree aspects of product1.Product classProduct form3.BrandOutputs:the product portfolioProduct life cycleNew product and innovationInnovationProduct inn

37、ovation would be an important source of strategic advantage for the following reason:1.Reputaion2.Customer loyalty and High switching cost3.Learning Curve4.Industry barrier5.Price skimming6.Legal protectionNew product and innovationInnovationDisadvantage for innovation:Gaining regulatory approval wh

38、ere requiredUncertain demand High level of R&D costLower cost imitatorsCost of introductionNew product and innovationNew Product StrategiesLeader strategyFollower strategyNew product and innovationR&DProduct research is based on creating new products and developing existing one,in other words,the or

39、ganizations offer to the market.Process research is based on improving the way in which those products or service are made or delivered or the efficiency with which they are made or delivered.SWOT.The key strategic messages from boththe business environment and this chapter can besummarized in the f

40、orm of an analysis ofstrengths,weaknesses,opportunities and threats.6.5 SWOTWeaknessesLack of experienceLack of moneyThreatsThe imitation of competitorsHigh bargaining power of customersStrengthsSkilled peopleBrandIPOpportunitiesLow customer satisfactionTechnology obsolescenceGood relationship with

41、suppliers7 Managing strategic capabilityManaging strategic capabilityThe previous section considers how to diagnosethe strategic capabilities.This section isconcerned with what managers might do tomanage and improve the strategic capability oftheir organization.Limitations in managing strategic capa

42、bilitiesThe most valuable base of strategic capability may lie inaspects of the organization that are difficult to discernor be specific.The problem is how to manage that which it is not easyto understand.Improving strategic capability1.Competences can be extended2.Non-essential activities can cease3.Base practice can be extended4.Activities can be added and existing ones improved5.Activities can be re-structured6.Weakness can be remedied7.External capability can be introduced