Strategic Management

The Internal Environment

Resource-Based View
A resource-based view of strategy analysis Grant (1991)

The Value Chain

Support Activities Organisation Infrastructure Human Resource Management Technology Development Procurement

Primary Activities

M ar

Inbound Operations Outbound Marketing Service Logistics Logistics & Sales

gin

gin ar M

The Value System

Supplier V C Channel V C Customer V C

Organisations Value Chain

Adapted from Exhibit 4.4 - The value system in G Johnson and K Scholes Exploring Corporate Strategy, 6th edition, Pearson 2002, p162

Resources
Physical Quantitative Qualitative Human Skills Adaptability Financial Source and usage Relationships Intangibles Brands and Image Contacts and Knowledge

Resource & Competencies

Core Competencies
Three Tests
Provides access to a range of markets Significant perceived valuable to customer Difficult to imitate
Ref: Hamel and Prahalad (1990)

Effectiveness
Are we doing the right things?

Customer Requirements
Critical Success Factors Product, Service, Price

Value Added Features

Product, Service, Communication

Efficiency
Are we doing things right?

How can we economise on the present use of resources? How can we use existing assets more intensely?
G Johnson and K Scholes, Exploring Corporate Strategy, 6th Edition, Pearson, 2002,

Value Chain Challenges

Optimisation Co-Ordination Location

Value Adding
Outsourcing

Value System Integration

Sustaining Advantage