4. Without a strategy, managers have: No thought-out course to follow No roadmap to manage by No action program to produce the intended result http:// debashishbramha.blogspot.com
5. Good strategy and good strategy execution are the most trustworthy signs of good management. http:// debashishbramha.blogspot.com
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7. which are required for firms to achieve: Above-Average Returns Strategic Competitiveness Sustained Competitive Advantage The Strategic Management Process Involves the full set of: http:// debashishbramha.blogspot.com Actions Commitments Decisions
8. Sustained Competitive Advantage Above-Average Returns Returns in excess of what an investor expects to earn from other investments with similar risk Occurs when a firm develops a strategy that competitors are not simultaneously implementing Provides benefits which current and potential competitors are unable to duplicate Strategic Competitiveness Achieved when a firm successfully formulates and implements a value-creating strategy http:// debashishbramha.blogspot.com
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14. http:// debashishbramha.blogspot.com General administration Human resource management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing and sales Service The Value Chain
15. Value Chain Analysis Inbound Logistics • • • Materials control system Inventory control system Raw material handling and warehousing Operations • • • • Equipment comparison to competitors Plant layout Production control system Level of automation in production processes http:// debashishbramha.blogspot.com
16. Value Chain Analysis Outbound Logistics • • Timeliness and efficiency of finished products delivery Warehousing of finished products Marketing and Sales • • • • • • • • Marketing research Sales promotions and advertising Alternative distribution channels Competency and motivation of sales force Organization’s image of quality Organization’s reputation Brand loyalty of customers Domination of various market segments http:// debashishbramha.blogspot.com
17. Value Chain Analysis Customer Service • • • • • Customer input for product improvements Handling of customer complaints Warranty and guarantee policies Employee training in customer education & service issues Replacement parts and services http:// debashishbramha.blogspot.com
18. Value Chain Analysis Procurement • • • • • Alternate sources for obtaining needed resources Timeliness of resources procurement Procurement of large capital expenditure resources Lease-versus-purchase decisions Long-term relationships with reliable suppliers Technological Development • • • • • • R&D activities in product and process innovations Relationship between R&D and other departments Meeting deadlines in technological development activities Quality of labs and other research facilities Qualifications of lab technicians and scientists Creativity and innovation in organizational culture http:// debashishbramha.blogspot.com
19. Value Chain Analysis Human Resource Management • • • • • • • Recruiting, selecting, orienting, and training employees Employee promotion policies Reward systems to motivate and challenge employees Absenteeism and turnover Union-organization relations Employee participation in professional organizations Employee motivation, job commitment, and satisfaction http:// debashishbramha.blogspot.com
20. Value Chain Analysis Firm Infrastructure • • • • • • • Identification of external opportunities and threats Accomplishing goals with strategic planning system Coordination and integration of value chain activities Low-cost capital expenditures & working capital funds IS support for strategic and operational decisions Relationships with stakeholders Public image as a responsible corporate citizen http:// debashishbramha.blogspot.com
30. For a strategic capability to be a Core Competency, it must be: Core Competencies What a firm Does ... that is Strategically Valuable Valuable Rare Costly to Imitate No substitutable
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35. Criteria for Sustainable Competitive Advantage and Strategic Implications Valuable Rare Difficult Without Implications to Imitate Substitutes for Competitiveness No No No No Competitive disadvantage Yes No No No Competitive parity Yes Yes No No Temporary competitive advantage Yes Yes Yes Yes Sustainable competitive advantage Is a resource or capability… Source; Adapted from J. Barney, “Firm Resources a Sustained Competitive Advantage, ‘ Journal of Management 17 (1991), pp. 99-120.
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37. What a firm Does ... Capabilities Represent: The firm’s capacity or ability to integrate individual firm resources to achieve a desired objective. Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firm’s tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firm's employees. Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage . Capabilities
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