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AnalysingtheFirm’sInternalEnvironment
TheResource-BasedViewoftheFirm
Dr.CatherineKavanagh
AnalysingtheInternal EnvironmentInternalanalysisisthesystematicevaluationofthekeyinternalfeaturesofanorganization4broadareasusuallyconsideredforinternalanalysisTheorganization’sresources,capabilitiesThewayinwhichtheorganizationconfiguresandco-ordinatesitskeyvalue-addingactivitiesThestructureoftheorganizationandthecharacteristicsofitscultureTheperformanceoftheorganizationasmeasuredbythestrengthofitsproducts
Analysisofthe
globalbusinessResources,
capabilitiesand
corecompetencesCulturaland
structuralanalysisGlobalvaluechain
analysis:configuration
andco-ordinationGlobalproductsandperformanceInternalanalysis
AnalysingtheInternal EnvironmentInternalanalysisisthesystematicevaluationofthekeyinternalfeaturesofanorganizationKeycontributions?Porter–theValueChainTheRBVApproach(resources)TheCapabilitiesApproach(capabilities)CoreComptences(PrahaladandHamel,1990)Andmanymore…………….ALLemphasiseaninside-outapproachtostrategy
Corecompetence
Distinctiveandsuperior
skills,technology
relationships,
knowledgeand
reputationofthefirm
Unique,and
difficulttocopyResources:
human,financial,
physical,
technological,
legal,informational
Tangibleand
visibleassetsCapabilities:
Industry-specific
skills,relationships,
organizational
knowledge
Intangible
andinvisible
assetsPerceived
customer
benefits/value
added+=Inputsto
thefirm’s
processesIntegrationof
resourcesinto
value-adding
activitiesNotallcapabilitiesarecore
competences–onlythose
thataddgreatervaluethan
thoseofcompetitorsDenotesfeedback
loop
denotescorecompetence
developmentTherelationshipsbetweenresources,capabilitiesandcorecompetence
OverviewofthisTopicWhatisRBV?PenrosePetarafBarne
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