Internal Environment Analysis Assignment 2022 - Desklib

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INTERN
AL
ENVIRONM
ENT
ANALY
SIS
Chapte
r 4
Assoc Prof. Dr. Lê Thái
Phong Faculty of Business
Administration Foreign
Trade University
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Learning objectives
1. Understanding resources +
capability + distinctive/core
competencies
2. Value creation of firm
3. Value chain analysis
4. Key success factors (KSFs)

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External and Internal Analysis
Macroecono
mics
Economic
Political &
Legal
Technology
Socio-
cultural
THE Demographic
MACRO-ENVIRONMENT STRATEGIC GROUPS
INDUSTRY STAGE of
DEVELOPMENT EXTERNAL 5
FORCES MODEL (Plus 1)
THE Rivalry
INDUSTRY Barriers to entry
Suppliers
Buyers
Substitutes
THE Complementors
COMPETITOR ANALYSIS
COMPANY
COMPANY STAGE of DEVELOPMENT
RESOURCES, COMPABILITY,
DISTINCITIVE COMPETENCIES,
VALUE CREATION
Efficiency
Innovation
Customer Responsiveness
Quality
2-3
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“Before leaders can set up a new stra
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Internal environment
analysis
• The aim of the strategy is to
generate better business results
(competitive advantage).
The purpose of internal analysis is to pinpoint the
strengths and weaknesses of the organization.
Strengths Weaknesses
Lead to superior performance. Lead to inferior performance
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advantage
to gain profitability that is greater than the average profitability of the industry.
Competitive advantage
maintain profitability and good profit growth that is higher than average level of the industry for m
Competitive advantage
strategy is to achieve a sustainable competitive advantage which is measured by better pr
Internal environment
analysis
• Internal analysis includes:
– Quality + quantity of resources +
capabilities
– The method of construction of unique
skills and distinctive capacity of
enterprises
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Competitive advantages
Dell achieved sustainable competitive advantage, in comparison with
competitors
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Strategy and competitive
advantage
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Resources
Intangible (invisible): assets that cannTangible (visible): assets that can be seen, touch, and q
THE ASSETS THAT ORGANISATIONS HAVE OR CAN CALL UP
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Types of Firm Resources
• Tangible resources are
assets that are relatively easy
to identify:
– Physical assets: plant & facilities,
location, machinery & equipment
– Financial assets: cash & cash equivalents,
borrowing capacity, capacity to raise equity
– Technological resources: trade secrets,
patents, copyrights, trademarks, innovative production
processes
– Organizational resources: effective
planning processes & control systems
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Types of Firm Resources
• Intangible resources are
difficult for competitors to
account for or imitate – are
embedded in unique routines &
practices:
– Human resources: trust, experience &
capabilities of employees; managerial skills &
effectiveness of work teams
– Innovation resources: technical &
scientific expertise & ideas; innovation capabilities
– Reputation resources: brand names,
reputation for fairness with suppliers; reliability &
product quality with customers
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Example: FTU
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