Chapter 3
The Internal Environment:
Resources, Capabilities and
petencies
Chapter 3
Internal
Environment
Chapter 2
External
Environment
The Strategic
Management
Process
Strategic Intent
Strategic Mission
Strategic
Competitiveness
Above Average
Returns
Feedback
Strategy Formulation
Chapter 4
Business-Level
Strategy
Chapter 5
Competitive
Dynamics
Chapter 6
Corporate-Level
Strategy
Chapter 8
International
Strategy
Chapter 9
Cooperative
Strategies
Chapter 7
Acquisitions &
Restructuring
Strategy Implementation
Chapter 10
Corporate
Governance
Chapter 11
Structure
& Control
Chapter 12
Strategic
Leadership
Chapter 13
Entrepreneurship
& Innovation
Strategic
Inputs
Strategic
Actions
Strategic
es
Chapter 2
External Environment
What the Firm Might Do
Chapter 3
Internal Environment
What the Firm Can Do
petitive
Advantage
Resources
*
Tangible
*
Intangible
Capabilities
Teams of
Resources
Sources of
Core
Competencies
Competitive
Advantage
Strategic
Competitiveness
Above-Average
Returns
Competitive
Advantage
Gained through
petencies
Discovering
Core
Competencies
Discovering petencies
Criteria of
Sustainable
Advantages
Value
Chain
Analysis
Valuable
Rare
Costly to Imitate
Nonsubstitutable
*
*
*
*
*
Outsource
How do we assemble bundles of Resources, Capabilities and petencies to create VALUE for customers?
Will environmental changes make our petencies obsolete?
And...
Are substitutes available for our petencies?
Are our petencies easily imitated?
Key Questions for Managers
in Internal Analysis
Resources
*
Tangible
*
Intangible
Discovering petencies
What a firm has to work with:
its assets, including its people and the value of its brand name
What a firm Has...
Resources
Resources represent inputs into a firm’s production process...
such as capital equipment, skills of employees, brand names, finances and talented managers
What a firm Has...
What a firm has to work
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