WEEK 4 - Evaluating a company's resources, capabilities, and competitiveness.

Hi everybody! ^^ How are you today? Today, I would like share about what I’ve learned in chapter 4. Ok! Now, I want to ask you. What resources and capabilities are? Take 5-10 minutes to thinks and answer my question. So now, let’s compare your answer and my explanation about the two key words that I’ve mentioned earlier. 

Alright, now you know what my answer is. Then, compare with your answer. Is it same with me? Or your answer is more clearly and more suitable than me? Or your answers are differing from me? If I make a mistake, please let me know ok! Thank you. (^_^) Therefore, a firm’s resources and capabilities represent its competitive assets and are big determinants of its competitiveness and ability
to succeed in the marketplace. Resource and capability analysis is a powerful tool for sizing up a company’s competitive assets and determining if they can support a sustainable competitive advantage over market rivals.

Next, we move on VRIN test. What is VRIN? VRIN test is for sustainable competitive advantage which means sustain for a long-term. VRIN test ask if resources:

To identifying the firm’s resources and capabilities by VRIN testing, the firm should ask:

●     Is the resource (or capability) competitively Valuable?

●     Is the resource Rare—is it something rivals lack?

●     Is the resource hard to copy (Inimitable)?

●     Is the resource invulnerable to the threat of substitution from different types of resources and capabilities (Non-substitutable)?

Then, we move on SWOT analysis. Do you know what SWOT analysis is? I believe that many of us know what SWOT analysis is. While many can quickly understand what SWOT stands for? Basically, S represent as strength, W as weaknesses, O as opportunities, and T as threats. SWOT analysis is a powerful tool for sizing up a firm. Many too forget the need for matching external with internal factors to generate appropriate strategies.

Opportunities + Threats = External

Strengths + Weaknesses = Internal

                                               

I think I should not explain more about SWOT analysis because many of us can easily and quickly understand what SWOT analysis is. Hence, in business, internal and external should match together. By matching these two sets of factors, a rational strategic decision can be derived.

Lastly, I want to explain a little bit about the concept of a company value chain. A company’s value chain identifies the primary activities and related support activities that create customer value. The simple example of value chain process as following:

In short, value chain analysis facilitates a comparison, activity-by-activity; of how effectively and efficiently a firm delivers value to its customers, and relative to its competitors. Moreover, segregate the firm’s operations into different types of primary and secondary activities to identify the major components of its internal cost structure. So, I think that’s all for today. I’ve no idea to explain more because I’m not totally 100% understand about this concept. Sorry. (~_~) Please forgive me for the mistake that I’ve done and for the wrong information that I’ve shared with you. Thank you. See you later! ^^

( Evaluating a Company's External Environment )

Assalamualaikum..

Hi everyone! Today, I want to share about what I’ve learned in my class last two weeks. Hehe. Sorry because I’m late update my blog. (^_*) Actually, I’ve no idea to update my blog before this. Now, I think I can share a little bit about chapter 3 (Evaluating a Company’s External Environment). Sorry if I make a mistake especially grammatical error. J Alright! Let’s start! Ok, first question is what is macro-environment? Generally, macro-environment also known as general environment includes all the environmental factors that have an impact on all organizations and firms within the economy. It is represents factors that will influence directly or indirectly. A simple acronym to remember the factors is PESTEL.

The examples of each factor as below:

The macro-environment or PESTEL analysis, however, is not to enough to identify meaningful opportunities and threats to a firm. A group of firms that produce similar products or sell the same product to the same markets is defined as an industry. The industry environment includes the key forces shaping and influencing competition in that industry. These forces are known as Michael Porter’s Five Forces Model (1980) and described as below:

Now, I will explain one buy one for the five competitive forces. Firstly, threats of new entrants. A new entrant to an industry can raise the level of competition. An industry’s barrier-to-entry can limit the number of new entrants into the industry. Barrier-to-entry refers to factors that can obstruct or limit the threat of new entrants. The following have identified as barrier-to-entry for new firms into an industry:

Secondly, the bargaining power of suppliers. Suppliers are the source for an organization to obtain the inputs such as labors, parts and raw materials needed to produce its goods and services. For instance, a supplier group is powerful when the suppliers’ goods are critical to the buyers’ marketplace success. Next is bargaining power of buyers. Customers are the potential buyers of the products that are supplied by the firm in the industry. Customers also have the most power when they are large and purchase most of the industry’s input. Fourthly, substitute products. Generally, product substitute present a strong threat to affirm when the customers can obtain a product which is almost of the same quality or the same functions as a product the industry produces and at a lower price. The substitute products can be a treat when the product is undifferentiated. Last but not list, rivalry among competitors. Rivalry among competitors can be most intense when there are numerous competitors in the industry. Other than that, the rivalry among competitors can be strong and powerful when there are high fixed costs of production.

Ok! I think I should stop here. It is because I have no idea anymore to share more about this topic. I’m really sorry for the weaknesses. I hope what I have explained before can help you a little bit. Alright! I stop here. Arigato! Haik! Hehe (^_*) See you soon! ^^

# The Business Vision and Mission #

Hi everyone! Today I would like give a short brief about the business vision and mission. Do you know what vision is? Mission? Ok! Let’s me tell you. Generally, vision refers to the basic question which is “What do we want to become?” Meanwhile, mission refers to how we want to achieve the vision. For example, if your vision is wants to be an entrepreneur, your mission should be to get more knowledge and experience as much as possible. Other than that, your mission may be to further your study on a higher level in field of business. But, the vision statement should be short and preferably one sentence. In business, a mission is a declaration of an organization’s “reason for being.” Its reveals what an organization wants to be and whom it want to serve.

Now! We move on the importance of vision and mission statement in an organization.

And for the last, what components should be included in mission statement? Ok! Let’s me tell you. There are nine components in mission statement which are:

Alright! I think that's all for today. I have no idea to talk more. Sorry for the mistake that I'd done. Thank you for took the time to read my blog. (^_^)

* Week 1 *

ASSALAMUALAIKUM..

Hi! See you again! How are you today? Hope all of us are fine. Ok! Without wasting time, today I would like to share about what I’ve learned in week one. Our first topic for this subject is The Nature of Strategic Management. First of all, I want to know what you understand about strategic management. Ok! Think first! (???????????????)

Right now, tell yourself what strategic management is. Done! Ok, good job! (^_^) Now, let’s me tell you about the nature of strategic management. Strategic management refers to determine mission, vision, values, goals, objectives, roles and responsibilities, timeliness, and etc. Meanwhile, strategic plan is a company’s game plan. It is used to help an organization to do better job and to ensure member of the organization are working toward same goals.

I've already explained about the stages of strategic management just now. Now, I’ll explain you about the key terms in strategic management. The key terms as follows:

1)    Competitive advantages: You have a factor that others can’t imitate.

2)    Strategists: Person who are responsible to the success and failure of an          organization.

    3)    Vision & mission statement: What do we want to become? What is our business? How?

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     4) External opportunities and external threats: Refers to demographic, culture, social, technological, and etc.

5)    Internal strengths and internal weaknesses: Determined relatives to competitors.

6)    Objectives: Specific results that an organization seeks to achieve basic mission.

    7)    Strategies: May include geographic expansion, diversification, product development, and etc.

   Alright, I think that’s all for today. I will share something new that I’ve learned after this. See you in next entry! Thank you.