INTERNAL SCANNING : ORGANIZATIONAL ANALYSIS
Core and distinctive competencies
Resources are an asset of organization and are thus the basic building blocks of the organization. Its include tangible assets, such as plant, equipment, and location, human assets (the number of employees, their skills and motivation), and intangible assets (such as technology-such as patent and copyright).
Capabilities is a corporation’s ability to exploit their available resources. Its consists of the business processes and routines that manage the interaction among resources to turn all the inputs into outputs. For examples, distribution channel and salespeople.
Competency is a cross-functional intergration and coordination of capabilities. For examples, the new
…show more content…
Examine each product line’s value chain in terms of the various activities involved in producing that product or services: Which activities can be considered strengths (core competencies) or weaknesses (core deficiencies)?
2. Examine the “linkages” within each product line’s value chain: Linkages are the connections beteween the way one value activity (for example, marketing) is performed and the cost of performance of another activity (for example, quality control).
3. Examine the potential synergies among the value chains of different product lines or business units: Each value element, such as advertising or manufacturing, has an inherent economy of scale in which activities are conducted at their lowest possible cost per unit of output. If a particular product is not being produced at a high enough level to reach economies of scale in distribution, another product could be used to share the same distribution channel. For an example of economies of scope, which result when the value chains of two separates products or services share activities, such as the same marketing channels or manufacturing facilities. The cost of join production of multiple products can be lower than the cost of separate
…show more content…
Employee tend to be functional specialists organized according to product / market distinctions.
• Corporate Culture: The Company Way
Corporate culture is the collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted frm one generaton of employee to another.
Corporate culture has two distinct attributes, intensity and intergration. Cultural intensity is the degree to which members of a unit accept the norms, values, or other cultural content associated with the unit.
All employees tend to hold the same cultural values and norms. In contrast, a company that is structured intodiverse units by functions or divisions usually exhibits some strong subcultures (for example, R&D versus manufacturing) and a less integrated corporate culture.
Corporate culture fulfils several important functions in an organizations:
1. Conveys a sense of identity for employees.
2. Helps generate employee commitment to something greater than themselves.
3. Adds to the stability of the organization as a social system.
4. Serves as a frame of reference for employees to use to make sense of organizational activities and to use as a guide for appropriate
Core Competencies Core competencies are capabilities possessed by an organization that “when applied to create products and services, make a critical contribution to corporate competitiveness” (Edgar & Lockwood, 2011). Lockheed Martin is a global security and aerospace company. The corporation’s core competencies are the research, design, development, manufacture, integration, and sustainment of advanced technology systems. By leveraging those competencies, Lockheed Martin delivers a broad portfolio of products and services—including high-performance combat aircraft, laser weapons systems, and unmanned combat vehicles. Business Objectives
It serves the purpose of educating employees
According to Porter’s value chain analysis company activities are divided in Primary and Supportive activities. Primary activities are directly related to creation of product, process sale and services. Supportive activities are provided to sustain primary activities. For a worldwide retail outlet like Target to add a value on its product depend upon the continuous supply of cost effective merchandise and add value to the costumers. Value Chain Analysis of TARGET
Johnson & Johnson currently has a 10.4% market share of the Pharmaceutical Manufacturing industry. They have the second largest share of this industry, just behind Amgen at 10.9%. By looking at the revenue and operating income for Johnson & Johnson, we can see their margins and evaluate their performance. Johnson & Johnson’s operating profit margin improved from 2015 to 2016 but decreased significantly from 2016 to 2017. The operating profit margin for the company as a whole in 2016 was 28.72% and in 2017 it was 24.07% (Appendix A).
4. Analysis of strategic capacities of Nikon Corporation This section analyzes the strategic capability Nikon. It starts with a value chain analysis, followed by a VRIN evaluation to determine whether there is any capacity can be sustained competitive advantage. 4.1 Value chain analysis Porter developed the value chain to help determine the internal activities for a competitive advantage, and which are not.
It will contribute to competitiveness, skills enhancement, employability and capacity to deal with
The four core competencies are capabilities that are valuable, rare, costly to intimidate and non-substitutable. When a competitor lacks resources to attempt imitation or when a company cannot duplicate benefits of a firm’s strategy is when a sustainable competitive advantage exists. VALUABLE Valuable capabilities help a firm neutralize threats or exploit
They have achieved such a success based on the way they have organized their operations. Competencies are very important for an organization to build up on their own. Competencies can be of two aspects namely core competencies and threshold competencies. A core competence can be identified as a unique set of skills or production techniques that deliver a particular value to the customer. A threshold competence can be identified as a quality that need to maintain by the organization in order to remain competitive in the market (Rohwedder & Johnson,
PERSONAL SWOT ANALYSIS To be successful in today’s modern world. It is essential for one to identify his or her strengths & weakness including opportunities & threats that are presented by knowing these four aspects, its possible to use them for our advantage. If person knows his or her strength & opportunities they will know where to tread with confidence as well as security. However, if can know the weakness & threats of them, then its possible for them to focus on those areas to improve and overcome obstacles posed by threats in an individual’s life.
However, at the evaluation the unique resources and competencies are capable to deliver the value proposition of the company. It is much difficult in identifying the recognizing driven business capabilities in terms of attaining competitive advantage. The VRIO model is used analyze firm’s internal resources and capabilities to find out if they can be a source of sustained competitive
It includes an organization's unique expectation, experiences and philosophy. Corporate culture is based on written and unwritten rules that have been developed over time. The culture is rooted in an organization's goals, strategies, structure and approaches to labor, customers, investors and the greater community. It affects the ways a company is conducting its business, how they treat their employees and customers. A good corporate culture can increase the organizations productivity and performance.
There are many different definitions of workplace culture. Charles Handy an Irish author/philosopher specialising in Organisational Behaviour and Management famously said that, “Culture is the way we do things around here,” but if someone was on the outside looking in how would you explain that to them. Would you have to be working there a long time yourself before you could see “how things work around here”. Because culture in an organisation is what makes it unique, it’s the personality, the attitudes, and the way we interact and relate to each other these are the things that attract the best and Brightest talent to a company. So, if an organisation has a “strong, positive, clearly defined and well communicated culture with strong core values” (Deloitte) that company is onto a winner.
Terms of Reference H&M also known as Hennes & Mauritz is one of the most leading apparel companies globally; one of creativity and style. The company is one which believes that it should offer to its customers fashion and quality at the best price. The aim of this report is to assess H&M’s company organizational culture as well as the core competencies and capabilities of the company; and how it has used these to attain the position at which it is at today in the fashion and apparel industry.
Strengths: As a student one of my strengths is organization. I can say I can keep my school materials and notebooks organized in a way that I and others can comprehend. The reason I can say I am organized is because, I have hardly ever had in the past or present any issues with trying to find homework or assignments because I always kept my materials for each class organized and in a place I could easily find. Another strength I have is social skills. I can believe that I communicate with others well in a group.
Increases Productivity: Redesigning their job functions and duties makes employees much comfortable and adds to their satisfaction level. The unambiguous job responsibilities and tasks motivate them to work harder and give best output. Not only this, it also results in increased productivity of an organization. Brings Belongingness in Employees: Redesigning job and allowing employees to do what they are good at creates belongingness in them for the organization. It is an effective strategy to retain talent in the organization and encouraging them to carry out their responsibilities in a better fashion.