ch 3 - internal analysis
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By: Emily Shapcott
Created: 2011-10-17
Size: 11 flashcards
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mcdonald's - opening case (comp. adv)
- supersize me --> new mgt
- health craze (obesity)
- dollar menu (recession)
- offer coffee (starbucks)
- restaurant atmosphere (quality)
- comp. adv
- economies of scale
- fast food
- low prices
- lots of locations
- franchise vs. corporation (issue)
components of sustainable comp. adv (3)
- sources in distinctive competencies (resources & capabilities --> mcdonalds/toyota)
- firm specific strengths that differentiate its products from rivals and/or have lower cost
- understand how to create value
- 4 generic factors
- superior efficiency
- innovation
- quality
- responsiveness to customer
- resources - assets of a company (firm specific & valuable)
- tangible - physical (ex: land, buildings, plant, equip.)
- intangible - nonphysical (ex: brand names, reputation, know how, intellectual property - patents, copyright)
- VRIN - valuable, rare, inimitable, non substitutable
- capabilities - skills at coordinating its resources for productive use (ex: rules, routines, procedures (ex: southwest - selective workforce)
- intangible - way decisions made, individuals interact
disney example - role of strategy
- resources + capabilities = distinctive competencies (brand name, film making skills, full length animation)
- distinctive comp --> "shape --> strategies to build comp. adv
- distinctive comp translate into lower costs than rivals and/or ability to diferentiate
profitability of a company
- value - what worth to customer
- price - options to reflect value
- costs - to produce
- utility - satisfaction/usefulness
- price < utility = special deal
- value = utility - cost
- utility - price = consumer surplus
- price - cost = profit margin
value chain activities (2)
- value chain - activities for transforming inputs into outputs (value)
- broken down by function
- primary (DIFFERENTIATION) - R&D (ex: ATM machine, ipod), production (ex: toyota > GM), marketing & sales (ex: burberry), customer service (ex: catepiller --> 24hrs)
- support (LOWER COSTS) - logistics (ex: dell/zara), HR, "B"IS (ex: dell/zara), infrastructure (ex: burberry)
4 generic factors - efficiency
- efficiency = inputs (low) / outputs (high)
- employee productivity (output per employee) - lower better (ex: ford vs. GM)
- capital productivity per unit of invested capital
- highest employee & capital product. = lower cost
4 generic factors - quality
- perceived bundle of attributes that provide higher utility (superior - ex: rolex)
- quality as excellence (utility) - design, style, aesthetic appeal (ex: walmart vs. nordstrom boots)
- quality as reliability (utility & efficiency) - consistent job performance (ex: toyota - TQM)
4 generic factors - innovation
- art of creating new product or processes
- product innovation - development of new or have exceeding qualities of existing (ex: intel - microprocessor, apple - iPod) --> more utility = more pricing
- process innovation - new process for producing products & delivering them (ex: toyota - lean, JIT) --> lower production costs
4 generic factors - responsiveness to customers
- combination of efficiency, quality, and innovation
- customization capabilities
- customer response time
- superior design, service, and customer service (ex: mail - express 2757% premium vs. std)
durability of comp. adv (3)
- barriers (speed) to imitation (greater = better adv.)
- resources - intangibles more difficult (brand name, rep - EXCEPT mkt, technology.. coke vs. pepsi)
- capabilities - based on way decisions made
- capability of competitors to respond (high strategic commit = better adv.)
- ex: automobile 1970's foreign producers (US slow to react)
- absorptive capability - ability to identify, value, as similar, and use new knowledge
- dynamism of environment - (low rapid changes = better adv.)
- ex: personal computer industry
About this deck
By: Emily Shapcott
Created: 2011-10-17
Size: 11 flashcards
Views: 3
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like
online flashcards with photos and audio.
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