STRATEGY
Environment
Firm
Assumptions
Internal Analysis
STRATEGY
Environment
Firm
2.
Strategy
STRATEGY
Environment
Firm
Rational v. Emergent
Low Cost v. Differentiated v. Integrated
Broad v. Focused
strategy
Financial
Balanced Scorecard
Stakeholder
Models of Business
and Strategic
Management
STRATEGY
Environment
Traditional or IO Model
Stakeholder Model
Firm
IO Model
Industry Analysis
Financial Ratios
Stakeholder Model
Stakeholder Analysis
Financial Ratios
External Analysis
Value Chain Analysis
Financial Ratios
Operations
Outbound
logistics
Marketing
and sales
Service
Value-Chain Analysis
Resource Based
View
VRIN Analysis
Financial Ratios
Resource Based
Model
Firm converts inputs into outputs using
Resources: the assets available to a firm to
develop and implement value creating strategies
Core
Competencies
Competitive advantage is derived from unique
resources and capabilities.
Firms distinguish themselves from competitors
by developing Core Competencies
VRIN Analysis
To be a source of sustainable competitive
advantage, a resource must have four attributes:
VRIN Analysis
Competen
cy
Valuable
Rare
Inimitabl
e
NonSub
Conclusion
Superior
Engineerin
g
Yes
No
No
Yes
Comp. Parity
Automate
d
Production
Yes
Yes
No
No
Integrated
Design
Yes
Yes
Yes
Yes
Sustainable comp.
adv.