“Internal Environment” Please respond to the following:From the e-Activity, analyze the internal environment of the company you researched to determine that company’s strengths and weaknesses.Based on the strengths and weaknesses you discovered, determine what steps the company could take to positively impact the company’s competitiveness. Explain your rationale.Week 3 eActivityUse the Internet or the Strayer Library to research a company of your choice with a focus on the company’s internal environment. Be prepared to discuss.Business Administration
BUS 499
The Internal Organization: Resources, Capabilities,
Core Competencies, and Competition Advantages
Objectives
• Upon completion of this lesson, you will be
able to:
– Analyze the internal environment of a
company for strengths and weaknesses that
impact the firm’s competitiveness.
Topics
• Analyzing the Internal Organization
• Resources, Capabilities, and Core
Competencies
• Building Core Competencies
• Outsourcing
• Competencies, Strengths, Weaknesses,
and Strategic Decisions
Internal Analysis
• Traditional Factors
• Global Mind-set
• Bundles
Creating Value
• Value
– Measured by characteristics and attributes
• Offer Superior Value
• Source of Above-Average Returns
Resources, Capabilities, and Core
Competencies
Discovering
Core
Competencies
Competitive
Advantage
Core
Competencies
Capabilities
Resources
-Tangible
-Intangible
Four Criteria
of Sustainable
Advantages
-Valuable
-Rare
-Costly to Imitate
-Nonsubstitutable
Value
Chain
Analysis
– Outsource
Strategic
Competiti
-veness
Resources
• Tangible Resources
– Financial
– Organizational
– Physical
– Technological
• Intangible Resources
– Human
– Innovation
– Reputational
Capabilities
• Resources purposely integrated
• Critical to the building of competitive
advantage
• Evolve and develop over time
Core Competencies
• Value Capabilities
• Rare Capabilities
• Costly-to-Imitate Capabilities
– Unique historical conditions
– Causally ambiguous
– Social complexity
• Nonsubstitutable Capabilities
PROPERTIES
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Value Chain
•
•
•
•
Understand the Parts
Template
Primary Activities
Support Activities
Outsourcing
• What is Outsourcing
– Purchase of a value-creating activity from an
external supplier
• Few organizations possess
– Resources and capabilities
Competencies, Strengths, Weaknesses, and
Strategic Decisions
• Why Analyze the Internal Organization
– Identify strengths and weaknesses
• Resources
• Capabilities
• Core Competencies
• Having the Right Resources
• Example of External Environment Affecting
Competitive Advantage
– Borders Group Incorporated
Summary
• Analyzing the Internal Organization
• Resources, Capabilities, and Core
Competencies
• Building Core Competencies
• Outsourcing
• Competencies, Strengths, Weaknesses,
and Strategic Decisions
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