Table of Contents
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“Understand what really makes a company ‘tick’.”
Chapter Outline
Company Situation Analysis: The Key Questions
Question 1: How Well Is the Present Strategy Working?
What Is the Strategy?
Key Indicators of How Well the Strategy Is Working
Question 2: What Are the Firm’s Strengths, Weaknesses, Opportunities and Threats ?
Identifying Resource Strengths and Competitive Capabilities
Identifying Resource Weaknesses and Competitive Deficiencies
SWOT Analysis -- What to Look For
Competencies vs. Core Competencies vs. Distinctive Competencies
Core Competencies: A Valuable Company Resource
Types of Core Competencies
A Distinctive Competence -- A Competitively Superior Resource
Strategic Management Principle
Examples: Distinctive Competencies
Determining the Competitive Value of a Company Resource
Strategic Management Principle
Identifying a Company’s Market Opportunities
Strategic Management Principle
Identifying External Threats
Strategic Management Principle
Role of SWOT Analysis in Crafting a Better Strategy
Question 3: Are the Company’s Prices and Costs Competitive?
Why Rival Companies Have Different Costs
Principle of Competitive Markets
What Is Strategic Cost Analysis?
The Value Chain Concept
A Typical Company Value Chain
The Value Chain System
The Value Chain System
Example: Key Value Chain Activities
Example: Key Value Chain Activities
Example: Key Value Chain Activities
Example: Key Value Chain Activities
Activity-Based Costing: A Key Tool in Strategic Cost Analysis
Traditional Cost Accounting vs. Activity-Based Costing
Benchmarking the Costs of Key Value Chain Activities
Objectives of Benchmarking
Ethical Standards in Benchmarking: Do’s and Don’ts
What Determines Whether a Company Is Cost Competitive?
Correcting Supplier-Related Cost Disadvantages: The Options
Correcting Forward Channel Cost Disadvantages: The Options
Correcting Internal Cost Disadvantages: The Options
From Value Chain Analysis to Competitive Advantage
From Value Chain Analysis to Competitive Advantage
Question 4: How Strong Is the Company’s Competitive Position?
Assessing a Company’s Competitive Strength versus Key Rivals
An Unweighted Competitive Strength Assessment
A Weighted Competitive Strength Assessment
Why Do a Competitive Strength Assessment ?
Question 5: What Strategic Issues Does the Company Need to Address?
Identifying the Strategic Issues
Stating the Issues Clearly and Precisely
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