BUS 1220 Week 5

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BUS 1220Week 5

• Internal Scanning Organizational Analysis

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Week 5 Objectives

• Conduct an internal organizational analysis to
  identify strengths and weaknesses within an
  organization.
• Develop a SWOT analysis (Strengths, Weakness,
  Opportunities, Threats).
• Define core competencies.
• Develop a value chain analysis to determine
  industry and organizational opportunities to
  achieve sustainable competitive advantage.

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Strategic Management Model
Environmental
Evaluation Control




Evaluation and Control
Strategy
Strategy
and Control
Development
Implementation
Scanning
Mission
External
Reason for

Societal

existence
Objectives
Environment

General Forces
What results

to

Strategies
Task

accomplish

Environment

by when
Plan to

Industry Analysis
achieve the

mission
Internal
objectives

Programs

Structure

Process


Chain of Command
to monitor
Activities

performance
needed to

Budgets

Culture

and take
accomplish


Beliefs, Expectations,

corrective
a plan
Cost of the

action
Values
programs
Procedures
Resources

Sequence

Assets, Skills

of steps

Competencies,

needed to

Knowledge
do the job
Performance
Feedback/Learning
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Environmental Scanning
Environmental Scanning The collection and
interpretation of information about forces,
events, and relationships in the external
environment that may affect the future of the
organization or the implementation of the
strategic plan.
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Environmental Scanning

• Business managers scan the internal and external
  environments of their firms in order to identify
  the positive and negative factors that may have
  an impact on the success of their organization
• We looked at the external environment last week,
  and used such tools as PEST Analysis, Porters 5
  Forces 1, and Issues Priority Matrix to identify
  opportunities and threats in a firms macro and
  industry environments
• This week we will consider a firms internal
  environment by understanding Core Competencies,
  and applying two tools Value Chain Analysis and
  SWOT Analysis

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• Prahalad and Hamel identify 3 tests for
  identifying a core competency
• Provides potential access to a wide variety of
  markets
• Makes a significant contribution to the benefits
  of the product as perceived by the customer
• Difficult for competitors to imitate

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Business Examples
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Value-Chain Analysis
Differences among competitor value chains are a
key source of competitive advantage.
Michael Porter
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Exercise Corporate Value Chain Analysis

• Construct the value chain for the PRIMARY
  ACTIVITIES of two competitors in your shoe
  industry (BSG-Online Simulation)
• COST LEADER
• DIFFERENTIATOR

Inbound Logistics Operations Outbound Logistics Marketing Sales Service
Profit Margin
Inbound Logistics Operations Outbound Logistics Marketing Sales Service
Profit Margin
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Situation Analysis
A tool commonly used by managers to analyse the
internal and external environments of their
organizations is the SWOT Analysis.
SWOT Analysis Identifying examining internal
strengths (S) internal weaknesses (W)
. external opportunities (O) external
threats (T)
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The components of a situation analysis
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The components of a situation analysis
PEST Analysis
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Exercise 5 SWOT Analysis
Names
S W
O T
Internal Factors (Company)
External Factors (Marketplace)
Application Develop a SWOT Analysis for your
shoe company
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