Internal scanning (organizational analysis): ( S / W )

- It’s common to say organizational scanning rather than internal scanning

1. Resources >>>> Assets (tangible & intangible) >>>> Capabilities (Dynamic) >>>>
Competences (core / distinctive)
• Intangible Assets: implicit knowledge.
• We must learn how to transfer implicit knowledge to explicit knowledge.
• Capabilities means the ability to exploit the resources. Or how to use it.
• Capabilities must be always adaptive because it’s dynamic not stable.
• Dynamic capabilities exist in everywhere, like: marketing, operation, IT, and so
on.
• & when it’s a cross function, which mean there is an integration and
coordination, it’s called competences.
• & when it’s specially requires to your industry, it’s called core competency.
• & when it’s perfectly existed in your organization over your competitors, it
called distinctive competency. Which normally lead to a competitive advantage.

2. VRIO framework (value / rare / imitability / organization)

• Capability must give me a value, and give customers as well.
• It must be rare.
• It must be not available to be imitated. Or difficult to imitate.
• It must have a structure to use it.

3. Structure / Culture / Resources (finance/marketing/sales/operations/logistics/IS)

• Is my organizational structure lead to goals?
• Structure follow strategy.
• You must use functional resources to identify strengths & weaknesses.

4. Value Chain (PORTER)

• Which activities give me a value, & which not.

5. I.F.A.S. (Internal Factors Assessment Summary) - IFE

• Which studied in lecture before. But here we apply it on strengths &
weaknesses, rather than opportunities & threats.
• Weakness which is irrelevant to my industry, must be almost ignore. Because it’s
not logic to waste my resources to overcome an irrelevant point.

6. Situation Analysis (SFAS / TWOS)

• Situational analysis is about matching between external & internal analysis.
Access to a Distinctive Competency:

- Cluster means anything that prevent my organization from doing well.

- There is no industry doing well if cluster around doing poor.
- geographic concentrations of interconnected companies and industries Access to:
• Employees
• Suppliers
• Information
• Complementary products
- If your comitative advantage enable you to have 50% efficient, the remain 50% maybe
getting from cluster.

Determining the Sustainability of an Advantage:

- Transparency: the speed at which other firms under the relationship of resources and
capabilities support a successful strategy.

- Transferability: the ability of competitors to gather the resources and capabilities

necessary to support a competitive challenge.

- Replicability: the ability of competitors to use duplicated resources and capabilities to

imitate the other firm’s success.

- Explicit knowledge: knowledge that can be easily articulated and communicated.

- Tacit knowledge: knowledge that is not easily communicated because it is deeply rooted in
employee experience or in the company’s culture.

NOTE: Know how is very hard to be imitated.

NOTE: The nature of activity itself determines to what extent it can be easily imitated or not.

Business Models:

- It is not a strategy; it is a platform.

- Business model is about how I serve the client.
- Types of business model:
• Customer solutions model
Like: IBM – Technical Companies
• Profit pyramid model
Like: General Motors
• Multi-component system/installed model
Like: Mr. Gillette
 • Advertising model
Like: Google, Yahoo, Newspapers, Electronic Papers.
• Switchboard model
Like: Amazon.
• Efficiency model
Considerate: cost with quality
• Blockbuster model
Like: cosmetics or pharma field
• Profit multiplier model
Like: Disney, Armani
• Entrepreneurial model
Like: Steve Jobs
• De Facto industry standard model
Like: Kodak

NOTE: you must choose the competitor who have the same business model of yours.

Value Chain Analysis:

- The value added to your product results from primary activities (like: logistics, whether
inbound or outbound) and other supporting activities (like: procurement not just
purchasing, technology development, human resource management, and firm
infrastructure).
- The point is just how to make synergy between all of that activities, & how to allocate
costs between them through ABC (Activity-based costs).

Basic Organizational Structures:

- Simple
- Functional
- Divisional
- Strategic Business Units
- Conglomerate
Required Reports for the project:

- Human development report, which issued from UN

- )‫مرص ف عيون العالم (مجلس الوزراء المرصى‬
- Economic Form, which issued from WEF
- Global Competitive Report
- Doing Business
- World bank
- Global Innovation Index
- Technological Readiness
- Entrepreneurship index
- World Trade Report, which issued from WTO