Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

VRIO framework (Barney 1991,1997) – tests competitive power of firm’s resources
and competencies
...
The firm must also have the
appropriate organisation in place to take advantage of these resources
...
If it is valuable, rare, difficult to imitate and supported by organisation, it
will have a sustained competitive advantage and above normal performance
*Criticism – little research on the relationship between the Organisation and the ‘VRI’
(resources) and it’s effects on performance
...


Competitive advantage – an advantage over competition gained by offering
customers greater value, either by means of lower prices or by providing greater cost
benefits and service that justifies higher prices
...
Assists in exploring the range of
options a company has in positioning a product in the market and identifies what is
the most competitive position that enables it to be at an advantage
...
Uncompetitive – 6,7,8
...
To remain competitive is to be cheap and hope you are not undercut
...
Low-cost
leaders
...
3
...
4
...
5
...
High risk margins high
price with no added value 7
...
8
...


Porter’s Generic Strategies –
suggested two overall business
strategies in order to gain competitive
advantage – differentiation or low
cost
...
Involves large-scale
production
...
Eg
...

Differentiation – aims to offer a
product which is distinctly different
from the competition with the customer
valuing this and being prepared to pay
...
Eg
...

* Porter identified if you are neither low
cost or differentiated you get ‘stuck in
the middle’ – likely to suffer competitive
disadvantage eg
...

*Porter did not identify that a product
could be low cost and differentiated
(hybrid ) eg IKEA



EVR Congruence – Thompson 1990
(congruence – an agreement or
harmony)
...
Environment – a
source of opportunities and threats –
key external factors
...
(in basic terms a
SWOT)
...
Lost
organisation – all factors are out of
alignment
...
Unconsciously
incompetent – enjoys strategic
positioning without real commitment,
Strategic drift – lost touch with
environment competition may make the
company’s product less attractive
...
Audits are important components of a
company’s risk management as they help to identify issues before they
become substantial problems
...
Prawitt et al (2009) state that little
research attention has focused on the effects of internal auditing on
companies external financial reporting
...
Kaplan & Norton’s Balanced
Scorecard method can be used for internal audits
...
Criticisms – definition of ‘expert’
questioned (Kitson et al 1994), anonymity between
panellists leads to a lack of exploratory thinking (Milkovitch
et al 1972), no ideal panel size has been stated (Bowles
1999), potential for research bias at all stages from
designing of open questions to content analysis
...

There has been a decline of Delphi use possible due to the
financial and workload factors as well as a change in
methodology fashions as this is a dated technique (1944)
...
Consists of two broad categories Primary
Activities (supply chain management, operations, distribution, sale and
marketing, services, profit margin) and Support Activities
(Development, HR management, General admin)
...
The order of the activities
make up a process
...
After identifying activities, a company must identify the cost
of each activity (eg
...
These costs must e
compared against each activity as well as the chains of suppliers and
competitors
...


Seven Components of the Macro environment
*Demographics – size, growth rate, age distribution, geographical
dispersion, income, and trends of different sectors of the population
...
Economic growth, inflation, unemployment rates etc
...
Firm strat – competition
in the home market that drive innovation and quality
...
Related &
supporting industries – inputs for a company which drives its success
(eg materials sent into Italy drive it’s fashion market)
...


MINTZBERG 5 P’s for Strategy 1987 – There are 5 definitions
of strategy: Plan – some sort of consciously intended course of
action, a guideline to deal with a situation
...
Ploy – a manoeuvre intended to outwit an opponent
or competitor
...
Position – the act of located an
organisation in a specific environment (this definition can stand
alone as well as after its preceding ones)
...
Perspective –
An organisation consists of an ingrained way of perceiving the
world, the personality of the organisation
...

Crafting strategy – strategy is deductive not inductive
...
Believed in the personal touch of
managers and sees them as craftsmen
...
Notice the trends
before they hit and modify the business to deal with it

---