BBA / BIM/ BBM

2. Methods/Techniques OF Internal
Environment Analysis
value Chain Analysis
Cost Efficiency Analysis
Effectiveness Analysis
Comparative Analysis

3. Value chain analysis
• A business may be seen chain of activities that transform inputs into
outputs that create customer value.
• Value chain represents the internal activities a firm engages in when
transforming inputs into outputs.

4. Activities in value chain
primary Activities
( Inbound logistics , Operations, Outbound logistics, Marketing and
sales, Service)
Supporting Activities
(procurement, Technological development, Human resource
management, Firm infrastructure)

5. Process of Value Chain Analysis
Identification of activities
Allocation of cost
Identification of the activities that differentiates of firm
Evaluation of value chain

6. Cost Efficiency Analysis
• cost efficiency is the utilization of organization resource in such a way
that the overall cost are minimized without compromising in the
quality.
• Its benefits the customers in terms of lower prices or more product
features for the same prices.

7. Effectiveness Analysis
• Under this analysis, product feature or effective analysis is also
included. Its is known as product effectiveness analysis.
• The main objective is to enhance product effectiveness by matching
customer requirement and product features.
• Under effectiveness analysis, the following considerations are made:
Customer requirement
Value added by organization
Degree of matching

8. Comparative Analysis
• Comparative analysis involves the comparison of capability of an
organization with the competitors as well as comparison of the
present performance of an organization with its part performance.
• Its helps to analyse the strength and weakness and prepare an
organization for exploitation of opportunity and migration of threat.
• Techniques of comparative analysis are:
Historical analysis
Industry standard
Benchmarking

9. Resource based view of strategy (RBV)
Internal Environment
• Model that evolved in 80’s and 90’s.
• Focused to achieve competitive advantage.
• Approach to evaluate performance of organization.

10. Resources
• All assets and capabilities(tangible and non-tangible).
• Strengths that firm can used to.
• Operated and controlled by firms

11. Tangible Assets Non-Tangible Assets
• Physical things No physical presence
• Land, buildings, equipment, capital Brand reputation
trademarks, intellectual property
• Easy to bought Can not buy from the market

12. Types/categories of Resources
• Physical resources
• Human resources
• Organizational capital resources

13. Physical resources(Things)
• Buildings
• Vehicles
• Machines
• Infrastructure
• Geographical location

14. Human resources(People)
• Experienced people
• Skilled and expert employees
• Training
• Intelligence
• Relationships with managers and employees

15. Organizational capital resources(Money)
• Source of financing
• Banks
• Equity investors
• Government permissions

16. • Competitive advantage:
• -Manufacture goods and services with product differentiation in better cost
than its rivals.
• -organization seeks favorable position to achieve more profit than its rivals.
• Competency:
• -ability to do something successfully.
• -skills requirements to perform something.
• -helps organization to achieve competitive advantage.
• Eg; skill requirements of singers voice quality, good memory, self
confidence, ability to deal with criticism.

17. Identifying sustainable
competitive advantage

18. • competitive advantage refers to advantage over the
competitor.
A competitive advantage as a value- creating strategy .
Achieved only when competitors cannot duplicate .

19. Four Attributes
• Valuable
• Give value to the organization.
• Rare
• Different from other.
• Non-substitutability
• Unique
• Costly to imitate
• Unique location
• Path dependency
• Causal ambiguity
• Social complexity

20. Knowledge Management
The process of identifying, acquiring, distributing and maintaining
knowledge.

21. Elements of Knowledge Management
• Knowledge Creation and Capture
• Knowledge Sharing and Enrichment
• Information Storage and Retrieval
• Knowledge Dissemination

22. Why do we have to manage knowledge?
• Marketplaces are increasingly competitive and the rate of innovation
is rising.
• Competitive pressures reduce the size of the work force that holds
valuable business knowledge.
• Early retirements and increasing mobility of the work force lead to
loss of knowledge.
• There is a need to manage increasing complexity as small operating
companies are transnational sourcing operations.
• Changes in strategic direction may result in the loss of knowledge in a
specific area.