CORE AND DISTINCTIVE COMPETENCIES

CORE AND DISTINCTIVE COMPETENCIES

Resources are an organization’s assets and are thus the basic building blocks of the organization. They include tangible assets (such as its plant, equipment, finances, and location), human assets (the number of employees, their skills, and motivation), and intangible assets (such as its technology [patents and copyrights], culture, and reputa- tion).1 Capabilities refer to a corporation’s ability to exploit its resources. They consist of business processes and routines that manage the interaction among resources to turn inputs into outputs. For example, a company’s marketing capability can be based on the interaction among its marketing specialists, distribution channels, and salespeople. A capability is functionally based and is resident in a particular function. Thus, there are marketing capabilities, manufacturing capabilities, and human resource manage- ment capabilities. When these capabilities are constantly being changed and recon- figured to make them more adaptive to an uncertain environment, they are called dynamic capabilities.2 A competency is a cross-functional integration and coordination

5-1. Apply the resource-based view of the firm and the VRIO framework to determine core and distinctive competencies

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324

Strategy Implementation: Staf�ng and Directing

C H A P T E R 11

Improve Your Grade! Over 10 million students improved their results using the Pearson MyLabs. Visit mymanagementlab.com for simulations, tutorials, and end-of-chapter problems.

Societal Environment: General forces

Natural Environment: Resources and

climate

Task Environment:

Industry analysis

Structure: Chain of command

Culture: Beliefs, expectations,

values

Resources: Assets, skills, competencies,

knowledge

Activities needed to accomplish a plan Cost of the

programs

Sequence of steps needed to do the job

Reason for existence

What results to accomplish by when Plan to

achieve the mission & objectives Broad

guidelines for decision making

RReason ffor

Mission

NNaturall

Structure:

WhWhatt l

h PlPlan to

hi the

BroB dad id li

A tActi iivitities d d

h CCostt of tf thhe

SeqSequenuencece f

Internal

External

Programs and Tactics

Budgets

Procedures

Performance

Objectives

Strategies

Policies

Actual results

Putting Strategy into Action

Strategy Implementation:

Developing Long-range Plans

Strategy Formulation:

Monitoring Performance

Evaluation and Control:

Gathering Information

Environmental Scanning:

Feedback/Learning: Make corrections as needed

Pearson MyLab Management®

325

11-3. Utilize an action planning framework to implement an organization’s MBO and TQM initiatives

11-1. Explain the link between strategy and staffing decisions

11-2. Discuss how leaders manage corporate culture

Learning Objectives After reading this chapter, you should be able to:

Workplace Discrimination and Public Image While the legal context of what constitutes workplace discrimination

is constantly evolving, public perception can impact companies in vir-

tually any industry. In 2015, the U.S. Equal Employment Opportunity

Commission (EEOC) received almost 90,000 charges of workplace dis-

crimination. These included discrimination complaints related to race,

color, sex, age, religion, pregnancy, disability, genetic information, and

national origin.

One of the more contentious issues has developed around the Affordable

Care Act (ACA), a movement nationwide to recognize same-sex marriages, and theŽLGBT

community. Companies including Wal*Mart, BNSF Railroad, Saks Fifth Avenue, SkyWest Airlines, and Pepperdine

University have cases pending against them in the federal court system. These plaintiffs argue that they are

being discriminated against because of their sex.

Wal*Mart extended spousal health coverage to same-sex marriages (where legal) in January 2014, however

those denied prior to that point have formed a class action suit against the company for discriminating based

upon the sex of the partner. As the country moved toward increasing recognition of same-sex marriage (37

states had statutes on the books before the June 2015 Supreme Court ruling that allowed same-sex couples

to marry) more and more companies decided to include same-sex married couples in their employees benefit

offerings. Today, it presents not only a business issue, but a public perception issue. Should Wal*Mart fight the

retroactive assignment of benefits or should the company settle with plaintiffs?

SOURCES: “If You Are Anti Are You Anti?” Bloomberg BusinessWeek, February 22–28, 2016, pp. 23–24; “State Same-Sex Marriage State Laws Map,” Governing, (http://www.governing.com/gov-data/same-sex-marriage-civil-unions-doma-laws-by -state.html) (Accessed 3/17/16); S. Heasley, “Workplace Disability Discrimination Claims At Record High,” Disability Scoop, February 17, 2016 (https://www.disabilityscoop.com/2016/02/17/workplace-claims-record-high/21926/).

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■■ The strategic audit worksheet is based on the time-tested strategic audit and is designed to help students organize and structure daily case prepa- ration in a brief period of time. The worksheet works exceedingly well for checking the level of daily student case preparation—especially for open class discussions of cases. (Chapter 13)

■■ An experiential exercise focusing on the material covered in each chapter helps the reader apply strategic con- cepts to an actual situation.

■■ A list of key terms and the pages on which they are discussed let the reader keep track of important concepts as they are introduced in each chapter.

PREFACE 25

FIGURE 13–1 Strategic Audit

Worksheet Analysi s

Strategic Audit Heading (+) Factors (–) Factors Comments

I. Current Situation

A. Past Corporate Performance Indexes

B. Strategic Posture: Current Mission Current Objectives Current Strategies Current Policies

SWOT Analysis Begins:

II. Corporate Governance

A. Board of Directors

B. Top Management

III. External Environment (EFAS): Opportunities and Threats (SWOT)

A. Natural Environment

B. Societal Environment

C. Task Environment (Industry Analysis)

IV . Internal Environment (IFAS): Strengths and Weaknesses (SWOT)

A. Corporate Structure

B. Corporate Culture

C. Corporate Resources

1. Marketing

2. Finance

3. Research and Development

4. Operations and Logistics

5. Human Resources

6. Information Technology

V. Analysis of Strategic Factors (SFAS)

A. Key Internal and External Strategic Factors (SWOT)

B. Review of Mission and Objectives

SWOT Analysis Ends. Recommendation Begins:

VI. Alternatives and Recommendations

A. Strategic Alternatives—pros and cons

B. Recommended Strategy

VII. Implementation

VIII. Evaluation and Control

NOTE: See the complete Strategic Audit on pages 32–39. It lists the pages in the book that discuss each of the eight headings. SOURCE: T. L. Wheelen and J. D. Hunger, “Strategic Audit Worksheet.” Copyright © 1985, 1986, 1987, 1988, 1989, 2005, and 2009 by T. L. Wheelen. Copyright © 1989, 2005, and 2009 by Wheelen and Hunger Associ- ates. Revised 1991, 1994, and 1997. Reprinted by permission. Additional copies available for classroom use in Part D of the Case Instructor’s Manual and on the Prentice Hall Web site (www.prenhall.com/wheelen).

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