CHAPTER 5

Internal
Scanning:
Organizational
Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY
10TH EDITION
THOMAS L. WHEELEN

Prentice Hall, Inc. 2006

J. DAVID HUNGER

5-1

Resource-Based Approach to Organizational Analysis

Internal strategic factors -Critical strengths and weaknesses that are

likely to determine if the firm will be able to take
advantage of opportunities while avoiding
threats

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Resource-Based Approach to Organizational Analysis

Resources
Capabilities
Competency
Core competency
Distinctive competency
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Core and Distinctive Competencies

VRIO Framework -Value

Rareness
Imitability
Organization

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Resource-Based Approach to Organizational Analysis

5-Step Approach Strategy Analysis -1.

2.
3.
4.
5.

Identify and classify resources

Combine strengths into capabilities
Appraise profit potential of capabilities
Select strategy that best exploits
Identify resource gaps invest in weaknesses

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Continuum of Sustainability

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Sustainability of Advantage

Durability -Rate at which a firms underlying resources

and capabilities depreciate or become obsolete

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Sustainability of Advantage

Imitability -Rate at which a firms underlying resources

and capabilities can be duplicated by others

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Sustainability of Advantage

Core Competency can be imitated -Transparency

Transferability
Replicability

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Business Models

Companys method for making money in

the current business environment.

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Business Models

Types of Models -Customer Solutions Model

Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model

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Business Models

Types of Models -Time Model

Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model

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Value-Chain Analysis

Linked set of value-creating activities

beginning with basic raw material and
ending with distributors getting final
goods into hands of customers

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Value-Chain Analysis

Typical Value Chain for

a Manufactured Product

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Corporate Value-Chain Analysis

Primary activities
Support activities

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Corporations Value Chain

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Scanning Functional Resources & Capabilities

Basic Organizational Structures -Simple structure

Functional structure
Divisional structure
Strategic business units (SBUs)
Conglomerate structure

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Basic Organizational Structures

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Corporate Culture

Collection of beliefs, expectations, and

values learned and shared by a
corporations members and
transmitted from one generation of
employees to another

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Strategic Marketing Issues

Market Position & Segmentation

Marketing Mix
Product Life Cycle
Brand & Corporate Reputation

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Product Life Cycle

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Strategic Financial Issues

Financial leverage
Capital budgeting

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Strategic Research & Development Issues

R&D Intensity
Technological Competence
Technology Transfer

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Technological Discontinuity

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Strategic Human Resource Management Issues

HRM
Increasing use of teams
Union relations
Temporary workers
Quality of work life
Human diversity

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Internal Factor Analysis Summary Table

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