Doing Internal Analysis
11 important questions on Doing Internal Analysis
What are Org. capabilities, describe it?
Example Southwest airlines turn around times shortened with its org. resources (plane, logo employees) and org. routines and processes (unloading, reservations, safety inspections, customer services)
Framework strategic role of org. resources and capabilities (Table pg 17)
distinctive org. cap. -> competitive advantage -> performance result
What are Distinctive org. capabilities?
Example Southwest Airlines distinctive org. capabilities in org. processes and routines such as turnaround, ticketing, employee-customer interactions. The company had developed distinctive org. capabilities in Sustainable Competitive Advantage that have resulted in above-average performance.
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Name characteristics of Distinctive org. capabilities
- Distinctive org. capabilities contributes to Superior customer value and offer real benefits to customers
- It should be difficult for competitors to imitate distinctive org. capabilities (complex array of employee skills and knowledge
- Distinctive org. capability should be Able to be Used in Variety of ways. (org. routines and processes Goretex transferable to making guitar strings, dental floss
Name there approaches to doing Internal analysis
- Value chain analysis (value creating activities)
- Internal audit to assess all internal area of org.
- Capabilities assessment profile
Value chain analysis (M.Porter) , describe it
Value chain analysis distinguishes Primary and Support Activities, describe these activities in a framework
- Inbound logistics; bring resources into org.
- Operations - Processing resources into goods and services
- Marketing & sales: marketing goods and services to customers
- Customer service; servicing customers
Support activities support the primary activities like
HR, Technological development (R&D) Firm infrastructure, procurement
Internal audit, describe it
Capability assessment profile; describe it
1. Identifying distinctive capabilities
2. developing and leveraging distinctive capabilities
Capabilities are distinctive when they contribute to superior customer value, difficult to initiate and usable in various ways.
Describe 5 steps of identifying org. capabilities
- prepare current Product-market Profile: org. - Customer interactions: what are we selling to whom, providing superior customer value (Etos: what to whom, benefits)
- identify source of Competitive advantage and disadvantage in main product-market segments: why customers choose your product; bundel of attributes (cameraspeed,size, price)
- Describe all org. capabilities and competencies: what to happen to provide superior customer value & benefits(KLM flight on time, customer services, trained pilots)
- sort core competencies according Strategic importance: Tangible customer benefits, difficult to imitate, access to different markets (see above)
- Identify and Agree in key capabilities and competencies
Criteria to Determine org. strengths and weaknesses, describe it:
- Past performance trends
- Comparison against competitors
- Specific goals or targets
- Personal opinion strategic decision makers or consultants
Can be done with the IFE Matrix: weight Rating Weighted score
The question on the page originate from the summary of the following study material:
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