evaluating company's RESOURCES, CAPABILITIES n COMPETITIVENESS

assalamualaikum..and start our day with Bismillah :)

Before Ms Ummi teach us about this topic, we watched the video about the hamburgers business by McDonald which are owned by Richard McDonald. McDonald is one of the very successful food business compared the others. Although McDonald is operated by non-muslim, it is not wrong if we make it as example and  follow the strategies,management and how the business is manage as long it does not violate with Syariah principles.

Best indicators of a well-conceived, well-executed strategy:

- The firm is achieving its stated financial and strategic objectives.

- the firm is an above-average industry performer.

COMPETITIVE ASSETS:

- are the firm's resources and capabilities.

- are the determinants of its competitiveness and ability to succeed in the marketplace.

- are what a firm's strategy depends on to develop sustainable competitive advantage over it's rival.

RESOURCE is a productive input or competitive asset that is owned or controlled by a firm.

               e.g: a fleet of oil tankers.

CAPABILITY is the capacity of a firm to perform some activity proficiently.

               e.g: superior skills in marketing.

SOCIAL COMPLEXITY is company culture, interpersonal relationships among managers or R&D teams, trust-based relations with customers and suppliers, while CAUSAL AMBIGUITY are two factors that inhibit the ability of rivals to imitate a firm's most valuable resources and capabilities.

DYNAMIC CAPABILITY is the ongoing capacity of a firm to modify its existing resources and capabilities or create new ones by:

- improving existing resources and capabilities incrementally

- adding new resources and capabilities to the firm,s competitive asset portfolio.

SWOT analysis is a powerful tool for sizing up a firm's:

- internal strengths (the basis for strategy) 

- internal weaknesses (deficient capabilities) 

- market opportunities (strategic objectives)

- external threats (strategic defenses)

A COMPANY'S INTERNAL STRENGTHS:

1) a COMPETENCE is an activity that a firm has learned to perform with proficiency- a capability.

2) a CORE COMPETENCE  is a proficiently performed internal activity that is central to a firm's strategy and competitiveness.

3) a DISTINCTIVE COMPETENCE is a competitively valuable activity that a firm performs better that its rival.

BENCHMARKING is a potent tool for improving a company's own internal activities that is based on learning how other companies perform them and borrowing their "best practices".

" coming together is a beginning;

keeping together is progress;

working together is success"!

last but not least....reminder to you all my friends n also to myself..always keep in mind, everything we do..it is because of ALLAH. may ALLAH bless us in everything we do.in sha ALLAH :D wasalam.....

EXTERNAL ENViRONMENT ANALYSiS

This entry is about the chapter 3 for Strategic Management subject:)  

What the DEFINITION of macro-environment? MICRO-ENVIRONMENT encompasses the broad environmental context in which a company's industry is situated that includes strategically relevant components over which the firm has no direct control.

FIVE COMPETITIVE FORCES

1) competition from rivals seller

2) competition from potential new entrant

3) competition from producers of substitute products

4) supplier bargaining power

5) customer bargaining power

DRIVING FORCE ANALYSIS

step 1: identifying what the driving forces are.

step 2: assessing whether the driving forces are, on the whole acting to make the industry more or less attractive.

step 3: determining what the strategy changes are needed to prepare for the impact of the driving forces.

then...

the meaning of STRATEGIC GROUP and STRATEGIC GROUP MAPPING

 

strategic group means a cluster of industry rivals that have similar competitive approaches and market positions.

strategic group mapping is a technique for displaying the different market or competitive positions that rival firms occupy in the industry.

KEY SUCCESS FACTORS means the strategy elements, product and service attributes, operational approaches, resources and competitive capabilities that are essential to surviving and thriving in the industry.

i hope this summary can make me understand more about this chapter..huhu.i think that's all from me..

see u soon..XOXO! :D

TUTORIAL ANSWER!

For the chapter 5, we are given by Ms. Ummi a task about the generic strategies. so..this is my answer!
please kindly check my answer:)thank you!

1) Broad cost-leadership:
Tesco- that empower the low price strategy with the goal which is "EVERY LITTLE HELPS"

2) Focused cost-leadership:
IKEA- IKEA as the global furniture retailer, provide customers with "affordable solutions for better living" where the company offers home furnishings that combine good design, function and quality with low prices.

3) Broad Differentiation:
McDonalds- McDonalds customers are of all classes, but largely working and middle classes, and people of all ages. It is strove to meet a customer wait time at no more than one minute in line and 30 seconds at the counter. They've taken competing on price right out of the picture. "They bring you quality, service, convenience, and value...."

4) Focused Differentiation:
Porsche- which is compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000. These cars are more than just transportation.

For me, as i can see, McDonalds have the common features with IKEA where the both are competing on the best services, quality, value at the lower price.
             

                                                             DONE!alhamdulillah :)

i will post the entry for chapter 5 as soon as possible. so sorry Ms. Ummi.hehe

ViSiON and MiSSiON

Bismillahirrahmanirrahim...
my update today is continuing from the previous post on Chapter 2..everyone must have their vision and mission in their life..as do as me:)

               VISION: within 5 years, I became a successful entrepreneur who owns my own clothes’ boutique                                 where I am the one who made the design for my clothes.

MISION:    -graduate excellently from USIM 

-get deeper knowledge and understanding about the business management and be able to apply it

                 -get involve with any business activities as much as I can.

In Sha Allah... :D

let's take a look a summary that i have made for this topic!

         a VISION STATEMENT should answer the basic question, “What do we want to become?” it also should be short, preferably one sentence, and as many managers as possible should have input into developing the statement.

a MISSION STATEMENT:

-a declaration of an organization’s “reason for being.”

-answers the pivotal question “What is our business?”

-essential for effectively establishing objectives and formulating strategies

-reveals what an organization wants to be and whom it wants to serve

Also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles.

The Importance of Vision and Mission Statement

1.To ensure unanimity of purpose within the organization

2.To provide a basis, or standard, for allocating organizational resources

3.To establish a general tone or organizational climate

4.To serve as a focal point for individuals to identify with the organization’s purpose and direction

5.To facilitate the translation of objectives into a work structure

6.To specify organizational purposes

Mission Statement Components

-CUSTOMERS- PRODUCTS or SERVICES- MARKETS- TECHNOLOGY- CONCERNS FOR SURVIVAL, GROWTH and PROFITABILITY- PHILOSOPHY- SELF CONCEPT- CONCERN FOR PUBLIC IMAGES- CONCERN FOR EMPLOYEES-

that's all from me..enjoy this note k!