Internal Analysis
Strategic Business Planning for Commercial Producers
What Tools Are Useful in Assessing Strengths and Weaknesses?
Resources, Capabilities, and Core Competencies
Strategic Business Planning for Commercial Producers
Strengths and Weaknesses
• Goal: objective assessment of your strengths and weaknesses
– relative to competitors – important to customers
Note: This is difficult to do well.
Strategic Business Planning for Commercial Producers
Challenge of Internal Analysis
• Identifying, developing, protecting, and deploying resources, capabilities, and core competencies
Strategic Business Planning for Commercial Producers
Resources
• Inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers
– Tangible Resources – Assets that can be seen and quantified – Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights
• By themselves, resources do not create a strategic advantage for the firm.
Strategic Business Planning for Commercial Producers
Capabilities
• Capacity to deploy resources that have been purposely integrated to achieve a desired end state. • Primary base for the firm’s capabilities is the skills and knowledge of its employees. • Just because the firm has a strong capacity for deploying resources does not mean it has a competitive advantage.
Strategic Business Planning for Commercial Producers
Core Competencies
• Resources and capabilities serve as a source of competitive advantage for a firm over its rival. • Not all resources and capabilities are core competencies. • Many suggest that firms should identify and concentrate on only 3 or 4 core competencies.
Strategic Business Planning for Commercial Producers
Identifying and Building Core Competencies
• Core competencies must be distinctive.
– Capabilities that are done better than competitors
What Tools Are Useful in Assessing Strengths and Weaknesses?
Resources, Capabilities, and Core Competencies
Strategic Business Planning for Commercial Producers
Strengths and Weaknesses
• Goal: objective assessment of your strengths and weaknesses
– relative to competitors – important to customers
Note: This is difficult to do well.
Strategic Business Planning for Commercial Producers
Challenge of Internal Analysis
• Identifying, developing, protecting, and deploying resources, capabilities, and core competencies
Strategic Business Planning for Commercial Producers
Resources
• Inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers
– Tangible Resources – Assets that can be seen and quantified – Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights
• By themselves, resources do not create a strategic advantage for the firm.
Strategic Business Planning for Commercial Producers
Capabilities
• Capacity to deploy resources that have been purposely integrated to achieve a desired end state. • Primary base for the firm’s capabilities is the skills and knowledge of its employees. • Just because the firm has a strong capacity for deploying resources does not mean it has a competitive advantage.
Strategic Business Planning for Commercial Producers
Core Competencies
• Resources and capabilities serve as a source of competitive advantage for a firm over its rival. • Not all resources and capabilities are core competencies. • Many suggest that firms should identify and concentrate on only 3 or 4 core competencies.
Strategic Business Planning for Commercial Producers
Identifying and Building Core Competencies
• Core competencies must be distinctive.
– Capabilities that are done better than competitors