Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

The competitive power of a company resource depends on

14/12/2020 Client: saad24vbs Deadline: 2 Day

page 82


CHAPTER 4


Evaluating a Company’s Resources, Capabilities, and Competitiveness


© Ikon Images/Alamy Stock Photo


PRINTED BY: Aaron Reagan <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.


11/7/2017http://e.pub/lc7027taixs89fglf6e8.vbk/OEBPS/chapter04-print-1510071469.xhtml


page 83


Learning Objectives THIS CHAPTER WILL HELP YOU UNDERSTAND:


LO 1 How to take stock of how well a company’s strategy is working.


LO 2 Why a company’s resources and capabilities are centrally important in giving the company a competitive edge over rivals.


LO 3 How to assess the company’s strengths and weaknesses in light of market opportunities and external threats.


LO 4 How a company’s value chain activities can affect the company’s cost structure and customer value proposition.


LO 5 How a comprehensive evaluation of a company’s competitive situation can assist managers in making critical decisions about their next strategic moves.


Crucial, of course, is having a difference that matters in the industry.


Cynthia Montgomery—Professor and author


If you don’t have a competitive advantage, don’t compete


Jack Welch—Former CEO of General Electric


Organizations succeed in a competitive marketplace over the long run because they can do certain things their customers value better than can their competitors.


Robert Hayes, Gary Pisano, and David Upton—-Professors and consultants


Chapter 3 described how to use the tools of industry and competitor analysis to assess a company’s external environment and lay the groundwork for matching a company’s strategy to its external situation. This chapter discusses techniques for evaluating a company’s internal situation, including its collection of resources and capabilities and the activities it performs along its value chain. Internal analysis enables managers to determine whether their strategy is likely to give the company a significant competitive edge over rival firms. Combined with external analysis, it facilitates an understanding of how to reposition a firm to take advantage of new opportunities and to cope with emerging competitive threats. The analytic spotlight will be trained on six questions:


1. How well is the company’s present strategy working? 2. What are the company’s most important resources and capabilities, and will they give the company a


lasting competitive advantage over rival companies? 3. What are the company’s strengths and weaknesses in relation to the market opportunities and


external threats? 4. How do a company’s value chain activities impact its cost structure and customer value proposition? 5. Is the company competitively stronger or weaker than key rivals? 6. What strategic issues and problems merit front-burner managerial attention?


PRINTED BY: Aaron Reagan <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.


11/7/2017http://e.pub/lc7027taixs89fglf6e8.vbk/OEBPS/chapter04-print-1510071469.xhtml


page 84


In probing for answers to these questions, five analytic tools—resource and capability analysis, SWOT analysis, value chain analysis, benchmarking, and competitive strength assessment—will be used. All five are valuable techniques for revealing a company’s competitiveness and for helping company managers match their strategy to the company’s particular circumstances.


QUESTION 1: HOW WELL IS THE COMPANY’S PRESENT STRATEGY WORKING?


LO 1 How to take stock of how well a company’s strategy is working.


In evaluating how well a company’s present strategy is working, the best way to start is with a clear view of what the strategy entails. Figure 4.1 shows the key components of a single-business company’s strategy. The first thing to examine is the company’s competitive approach. What moves has the company made recently to attract customers and improve its market position—for instance, has it cut prices, improved the design of its product, added new features, stepped up advertising, entered a new geographic market, or merged with a competitor? Is it striving for a competitive advantage based on low costs or a better product offering? Is it concentrating on serving a broad spectrum of customers or a narrow market niche? The company’s functional strategies in R&D, production, marketing, finance, human resources, information technology, and so on further characterize company strategy, as do any efforts to establish alliances with other enterprises.


FIGURE 4.1 Identifying the Components of a Single-Business Company’s Strategy


PRINTED BY: Aaron Reagan <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.


11/7/2017http://e.pub/lc7027taixs89fglf6e8.vbk/OEBPS/chapter04-print-1510071469.xhtml


page 85


The three best indicators of how well a company’s strategy is working are (1) whether the company is achieving its stated financial and strategic objectives, (2) whether its financial performance is above the industry average, and (3) whether it is gaining customers and gaining market share. Persistent shortfalls in meeting company performance targets and weak marketplace performance relative to rivals are reliable warning signs that the company has a weak strategy, suffers from poor strategy execution, or both. Specific indicators of how well a company’s strategy is working include:


• Trends in the company’s sales and earnings growth. • Trends in the company’s stock price. • The company’s overall financial strength. • The company’s customer retention rate. • The rate at which new customers are acquired. • Evidence of improvement in internal processes such as defect rate, order fulfillment,


delivery times, days of inventory, and employee productivity.


Sluggish financial performance and second-rate market accomplishments almost always signal weak strategy, weak execution, or both.


The stronger a company’s current overall performance, the more likely it has a well-conceived, well- executed strategy. The weaker a company’s financial performance and market standing, the more its current strategy must be questioned and the more likely the need for radical changes. Table 4.1 provides


PRINTED BY: Aaron Reagan <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.


11/7/2017http://e.pub/lc7027taixs89fglf6e8.vbk/OEBPS/chapter04-print-1510071469.xhtml


a compilation of the financial ratios most commonly used to evaluate a company’s financial performance and balance sheet strength.


TABLE 4.1 Key Financial Ratios: How to Calculate Them and What They Mean


Ratio How Calculated What It Shows


Profitability

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

University Coursework Help
Best Coursework Help
Homework Guru
Writer Writer Name Offer Chat
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$112 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$112 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Which excerpt from the story illustrates tom's overconfidence - Video introduction for job script - Ambridge institute - Drew marine product catalogue - Jolly phonics groups 1 2 and 3 - The data selected to create a chart must include - Discussion response - Llandegfedd reservoir boat hire - Human culture and expression - Reaction time experiment ruler conclusion - Www cengage com management lussier - Bus 308 week 4 assignment - How to create a healthy workplace environment presentation - How to build an orgone accumulator - International marketing chapter 7 - Dis 3 - Blank map of egypt to label - Studio art study design - Is it still possible to be a mountain man - Esol entry 3 reading past papers - As 4120 code of tendering pdf - PS490 Assignment 8 Research Proposal - Global marketing strategy case study - Ethical choices an introduction to moral philosophy with cases summary - Form 8829 instructions 2012 - Lufthansa carry on regulations - Different styles of drama - Topic - Unit 1 Discussions (HIS101 & HRM411) - Hw2 - How to write a formal analysis - Characteristics of news report - Domino's pizza in japan case study - Business HELP - Medieval punishment for stealing - Liquidcrystal lcd rs en d4 d5 d6 d7 - Marketing Essay - Christmas story pass and grab - Myitlab access chapter 6 grader project - Standardization vs localization ihrm - Shadow health chest pain answers - A different mirror a history of multicultural america pdf - Who discovered the world's smallest glacier worksheet - James baldwin give me liberty quote - The gift basket store had the following premade - Human trafficking - Culturally responsive teaching self assessment - Comprehensive problem 1 period 2 the accounting cycle general journal - Douglas water treatment plant - Robin hood mission vision values goals - Answer these questions 200 words(general reflection) - Professional Cover Letter - Annotated bibliography - Organizational Behavior concept ‘DIVERSITY’ at work place. - Identify two social science issues related to war - 3 - los colores fill in the blanks with words for colors based on the cues. - How to build a marble launcher - Infomation tech - Leadership theories matrix ldr 300 - Wbs for restaurant project - university transfer essay - Contemporary issues teenagers face today - A ucla researcher claims that the life span - I wanna new room text - Vroom and yetton decision tree - Next week super discount airlines has a flight - Emily hart maurice blackburn - La madre de marissa está muy contenta. - Epicurus on happiness philosophy a guide to happiness - Homework - Sweetheart r&b and blues concert in dallas - Accurate 2520 load data - How to measure benefits - Wiat iii sample report - Emerging trends in organizational development - Hatchet chapter 17 summary - Hailing a new era haier in japan - The dawes act quizlet - STATS 2023 - IP2MGMT - Business ethics - High commitment management approach - Policing in America - Grammar translation method demonstration - English 12 - Medieval romeo and juliet - Aih moodle - Nh4oh hcl balanced equation - Low voltage standoff insulators - A horizontal aluminum rod 4.8 cm in diameter - Walden university nursing specialty comparison matrix - Deliverable 3 - Change Management Roles - Kwl chart special education and learning disabilities - PsychoTherapy Disc 8 - Contact sunshine coast council - 561 4 Discussion Board - Indradrive m error codes - Assmnt - Gap big data case study - 8pm gmt to cst