Module 3- Internal Analysis

Presented by Dr. Trina Moskalik

10/9/14
Article Review
Related to Internal Review
Culture, core competencies, org. capabilities,
leadership
Author
Source
Publish date
Description of article
Analysis & Relevance to course topics

Internal Review
3 main areas to understand:
Operations & Processes
What do we do?
Organizational Structure & Controls
How are we organized?
Senior Leadership
Who leads us?
Resources
Tangible (Table 3.1- pg 80)
Products and buildings, items that can be
measured and copied
Financial, Organizational, Physical, & Technological
Intangible (Table 3.2- pg 81)
Products that cannot be measured and are harder
to copy
Human, innovation, & reputation
Capabilities
Defined as the collective skills, abilities, and
expertise of an organization
Combining tangible and intangible resources
creates organizations capabilities
Usually focused in a specific functional area

Example: Walmarts Distribution network

Core Competency
Capabilities that serve as a competitive
advantage for the organization
Capabilities that are rare, costly to imitate,
nonsubstitutable are core competencies

Apple & Samsung- case study on page 85
Thoughts?
Competitive advantage of each company?

Core Competencies
Each CC is a capability, but not all capabilities are
CC
Must meet 4 criteria to be a CC
Valuable
Rare
Costly to Imitate
Historical-culture or brand built over time
Ambiguous cause- not sure why it is an advantage to
competitors
Social complexity- cant replace the interpersonal
relationships
Nonsubstitutable
Competitive Advantage
Knowing your core competencies and using
them to gain an advantage over rivals

Look over article, lets discuss
Strategic Competitiveness
How should you use your competitive
advantage in the industry?

What resources should you pursue to
strengthen weaknesses in a given area?

What should your company outsource, or
bring back in-house to give more value to the
customer?
Internal Analysis
5 main areas of analysis
Resources
Capabilities
Core Competencies
Competitive Advantage
Strategic Competiveness
Process Analysis
How can you give customers more value from
your processes?
Support Processes Analysis
HR, IT, Management
Supply Chain Analysis
Supply Chain Mgmt., Distribution, Marketing,
Operations, Follow-up Services
Outsource versus inhouse?
Corporate Level Strategy
Specific actions a firm takes to gain a strategic
advantage by selecting and managing a group
of different businesses competing in different
product markets.
2 main points to consider
What markets should the firm compete in?
How should those businesses be managed?
Diversification
Low level diversification
1 main product or dominant business (75%
revenue)
Moderate diversification
Related businesses share technologies, less than
70% revenue from any of business
High diversification
No common links in businesses and less than 70%
revenue comes from any business
Reasons for Diversification
Value Creating
Economies of scope, market power
Value Neutral
Tax laws, risk reduction, resources
Value Reducing
Increasing managerial compensation
Organizational Structure
Org structure- reporting hierarchy for
reporting procedures, controls, and decision
making
Business alignment versus geographical alignment
Shared support teams versus individual business
teams
Organizational Controls
Org Controls guide the use of strategy, how to
compare results with expectations
Strategic Controls-subjective criteria, examining
what we might do versus what we can do
Used to evaluate supply chain and support analysis
Financial Controls-objective criteria, look at
quantitative data against previously established
standards (internal and competitor)
Helps to look at diversified business lines in a more
objective manner

Org Structure & Strategy
Simple Structure
Owner makes all decisions
Functional Structure
Structure with CEO & Departments (Functions)
Multidivisional Structure
Corp Office & Operating Divisions
Org Structure & Strategy
Related Link Strategy (p 346)
Strategic Business Lines then Divisions
Competitive Structure (p347)
Unrelated strategies, divisions compete for
resources
Cooperative Structure (p343)
Shared services
Geographical Structure (p350-351)
Define by geography or business unit
Strategic Leadership
Ability to anticipate, envision, maintain
flexibility, and empower others to create
strategic change as necessary
5 main responsibilities of Leaders
Determine Strategic Direction
Establish balanced organizational controls
Effectively manage firms resource portfolio
Sustain an Effective organizational culture
Emphasize ethical practices
Leadership Discussion
What should senior leaders bring to a
business?

What impacts can a new CEO have an a long
established company? Examples?
10 Steps to Building & Using a
Balanced Scorecard
6. Assign Initiatives
7. Implement the Process
8. Cascade the Scorecard
9. Evaluate the Scorecard and Process
10. Adjust Scorecard as needed
Great Wolf Resorts
Mission- "Creating Family Traditions, One
Family At A Time.
Culture- Fun, customer focused, growing
Look at website- greatwolf.com- corporate
website
Lets build a scorecard for their hotel
Assignment
Internal Review Paper
Who are we? This is the question you are answering with this paper for your chosen
organization. I want a detailed analysis of what is happening inside the four walls of your chosen
organization. Who are the people, what are the processes, what is your organization the best at,
what can they do, etc.? Review your company with a clinical detachment and try to analyze all
aspects of what the company is doing inside their walls.

Some items to include in your analysis:
What is the company culture? Who are the leaders of the company?
What are your organization's core competencies? What are the organization's capabilities?
What are the organizations resources?
Has any of this changed recently, if so how & why?
Complete a balanced scorecard based on the information above for your company.
Minimum 3 references APA formatted paper
Discussion Questions
Find a strategic business leader
What made him/her strategic?
What business results are attributed to him/her?

You are now the CEO of a company, how
would you structure your organization and
what would you be trying to accomplish with
this org. design?