By: Ulfa Romadhani 105020301111020 Muwachchidatul Ummah 105020301111027 Yeni Puri Rahayu 105020301111030

Reference: The Concepts of Strategic Management and Case Analysis edited by Made Sudarma, Prof., DR, SE, MM, id.CPA

A. A Resource-based Approach To Organizational Analysis

Internal strategic factors Resource

evaluation resources of Barney VRIO Framework: 1.Value 2.Rareness 3.Imitability 4.Organization

Using Resources To Gain Competitive Advantage

1. Identify and classify the firms resources in 2. 3.

4. 5.

term of strengths and weaknesses. Combine the firms strengths into spesific capabilities. Appraise the profit potential of these resources and capabilities in term of their potential for sustainable competitive advantage and the ability to harvest the profits resulting from the use these resources and capabilities. Select the strategy that best exploits the firms resoursces and capabilities relative to external opportunities. Identify resources gaps and invest in upgrading weaknesses.

Determining the sustainability of an advantage

Durability Imitability

- transparency - transferability - replicability

Level of resource sustainability

Slow-cycle resource

- strongly shielded - patents brand name - gillete : sensor razor Standard-cycle resources - standardized mass production - economies of scale complicated processes - chrysler mini van Fast-cycle resources - easily duplicated - idea driven - sony : walkman

B. Value-chain analysis

Corporate value-chain analysis

C. Scanning Functional Resources

Basic organizational structures

a. Simple structure

b. Functional structure

Scanning Functional Resources

c. Divisional structure

Scanning Functional Resources

Scanning Functional Resources

d. Strategic business units (SBUs) 1.A unique mission 2.Identifiable competitors 3.An external market focus 4.Control of its business functions e. Conglomerate structure

 Corporate culture: the company way - Corporate culture

cultural intensity cultural integration Strategic marketing issues Market position and segmentation Marketing mix Product life cycle

Product life cycle

 Strategic financial issues - Financial leverage

the ratio of total debt to total assets - Capital Budgeting analyzing and ranking of possible invesment in fixed assets

 Strategic R&D issues - R&D intensity, technological

competence, and technology transfer - R&D mix basic R&D product R&D Engineering - Impact of technological discontinuity on strategy

 Strategic operations issues - Experience Curve 1.A product never before made with the

present techniques and processes. 2.Current products produce by newly introduce techniques or processes. - Flexible Manufacturing for Mass Customization

Strategic Human Resources (HRM) Issues Use of Teams Union Relations and Temporary Workers Quality of Work Life and Human Diversity

1. Quality of work life a. Introducing participative problem solving b. Restructuring work c. Introducing innovative reward system d. Improving the work environment 2.Human Diversity refers to the mix in the

D. Synthesis of Internal Factors-IFAS

IFAS Table is one way to organize the internal factors into generally accepted categories of strength and weakness.

IFAS: Maytag as Example

Internal Factors 1 Strengths
Quality Maytag Culture Experienced Top Management Vertical Integration Employee Relations Hoovers international orientation Weaknesses Process-oriented R&D Distribution channels Financial position Global Positioning Manufacturing facilities .15 .05 .10 .05 .15

Weig ht 2

Ratin g 3
5 4 4 3 3

Weight Comments ed Score 4

.75 .20 .40 .15 .45 Quality key to success Know Appliances Dedicated factories Good, but deteriorating Hoover name in cleaners

.05 .05 .15 .20 .05

2 2 2 2 4

.10 .10 .30 .40 .20

Slow on new products Superstores replacing small dealers High Debt Load Hoover weak outside the united kingdom and Australia Investing now

E. Global Issues for the 21st Century

Business corporations hiring a more

diverse workforce with multilingual abilities in order to gain competitive advantage in a global environment. As more and more industries become hypercompetitive. Expect an increasing number of corporations to contract various functions to suppliers or distributors in an effort to reduce costs and be globally competitive.