INTERNAL SCANNING : ORGANIZATIONAL ANALYSIS
Core and distinctive competencies
Resources are an asset of organization and are thus the basic building blocks of the organization. Its include tangible assets, such as plant, equipment, and location, human assets (the number of employees, their skills and motivation), and intangible assets (such as technology-such as patent and copyright).
Capabilities is a corporation’s ability to exploit their available resources. Its consists of the business processes and routines that manage the interaction among resources to turn all the inputs into outputs. For examples, distribution channel and salespeople.
Competency is a cross-functional intergration and coordination of capabilities. For examples, the new
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Examine each product line’s value chain in terms of the various activities involved in producing that product or services: Which activities can be considered strengths (core competencies) or weaknesses (core deficiencies)?
2. Examine the “linkages” within each product line’s value chain: Linkages are the connections beteween the way one value activity (for example, marketing) is performed and the cost of performance of another activity (for example, quality control).
3. Examine the potential synergies among the value chains of different product lines or business units: Each value element, such as advertising or manufacturing, has an inherent economy of scale in which activities are conducted at their lowest possible cost per unit of output. If a particular product is not being produced at a high enough level to reach economies of scale in distribution, another product could be used to share the same distribution channel. For an example of economies of scope, which result when the value chains of two separates products or services share activities, such as the same marketing channels or manufacturing facilities. The cost of join production of multiple products can be lower than the cost of separate
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Employee tend to be functional specialists organized according to product / market distinctions.
• Corporate Culture: The Company Way
Corporate culture is the collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted frm one generaton of employee to another.
Corporate culture has two distinct attributes, intensity and intergration. Cultural intensity is the degree to which members of a unit accept the norms, values, or other cultural content associated with the unit.
All employees tend to hold the same cultural values and norms. In contrast, a company that is structured intodiverse units by functions or divisions usually exhibits some strong subcultures (for example, R&D versus manufacturing) and a less integrated corporate culture.
Corporate culture fulfils several important functions in an organizations:
1. Conveys a sense of identity for employees.
2. Helps generate employee commitment to something greater than themselves.
3. Adds to the stability of the organization as a social system.
4. Serves as a frame of reference for employees to use to make sense of organizational activities and to use as a guide for appropriate