CHAPTER 3 :

The Internal Organization :

Resource, Capabilities, Core
Competencies and
Competitive Advantage

Present by GROUP 1 :
1. Agus Muslim : 041724353016
2. Anton Sukoco : 041724353003
3. Hadyan Prabowo : 041724353011
4. Olin Lintang Pribadi : 041724353028
5. Rahmatul Maghfiroh : 041724353004
 Discussion :

Analyzing the Internal

3-1 Organization

Resource, Capabilities and

3-2 Core Competencies

3-3 Building Core Competencies

3-4 Outsourcing

3-5 Competencies, Strength,

Weakness and Strategic
Decisions
 CORE COMPETENCE
Core Competence
• Zara's capability to produce
new clothing design quickly is
ZARA a core competence also a
competitive advantage

• Boeing innovation in
BOEING technology is also the firm's
core competence

Big • Big Pharma Capable of

forming BDA is also the firm's
Pharma core competence
Competitive Advantage
Sustainability :

Of core competence
obsolescence
because environmental
Rate changes

of substitutes for the core

competence

Availability

Imitability

of the core competence

 Analyzing the Internal The Global Economy :
3-1
Organization is happening in today's business practice

The Source :
of competitive advantages now is vary

Core Competences :
are being created by many firms using their
resources to implement international strategy

Global Mindset :
is important to analize the firm's internal
organization

Evaluator Role :
is needed to examine the firm's entire portfolio
and resources

Understanding :
how to laverage firm's
unique bundle of resources is the key when
analyzing internal organization
Creating Value :

“Value is measured by a
products performance
characteristics and by its
attribute for which
customers are willing to
pay”

(Hitt, Ireland, and Robert

2017, 81)
 • The industry environment and customer’s need
UNCERTAINTY

• Interrelationship among conditions shaping

COMPLEXITY
a firm

• Intra-organizational conflict that might happen

Intraorganizationa among managers
CONFLICT
 Resource, Capabilities
3-2
and Core Competencies
 Resource, Capabilities
3-2
and Core Competencies
 Building Core
3-3
Competencies
Value Chain Analysis
 Outsourcing
3-4

“is the purchase of a value-creating

activity or a support function activity
from an external supplier”

(Hitt, Ireland, and Robert 2017, 96)

 Outsourcing
3-4
 Competencies, Stregth,
3-5
Weakness and Strategic
Decision
Thank You
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