Evaluating A Company's Resources, Capabilities, And Competitiveness

Assalamu’alaikum w.b.t.

In The Name of ALLAH, The Most Beneficent and Merciful

Peace and Blessings be Upon to Muhammad SAW, his family and friends.

EVALUATING A FIRM’S INTERNAL SITUATION

1.     How well is the firm’s present strategy working?

2.     What are the firm’s competitively important resources and capabilities?

3.     Is the firm able to take advantage of market opportunities and overcome external threats to its external well-being?

4.     Are the firm’s prices and costs competitive with those of key rivals, and does it have an appealing customer value proposition?

5.     Is the firm competitively stronger or weaker than key rivals?

6.     What strategic issues and problems merit front-burner managerial attention?

Picture 1

Do you know about SWOT analysis? It is a powerful tool for sizing up a firm's, which is:

v  Internal strengths (the basis for strategy)

v  Internal weaknesses (deficient capabilities)

v  Market opportunities (strategic objectives)

v  External threats (strategic defenses)

 SWOT analysis is a simple but powerful tool for sizing up a company’s strengths and weaknesses, its market opportunities, and the external threats to its future well-being.It's also basing a company's strategy on its most competitively valuable strengths gives the company its best chance for market success.

For illustration, figure 1 below is the example of SWOT Analysis of one business company:

Figure 1

Picture 2

THE CONCEPT OF A COMPANY VALUE CHAIN

#  A company’s value chain identifies the primary activities and related support activities that create customer value. In other words, value chain is an analysis which looks at every step a business goes through from raw materials to the eventual end-user. The objective is to deliver maximum value for the least possible total coast.

                Do you know what is benchmarking? Benchmarking can be simply defined as a continuous process to find and perform best practices that will lead to superior performance. In other words, this is the process of comparing one's business processes to industry bests from other industries. As the definition envision, benchmarking is a process that will make the company's operations lean, and improving quality and productivity. There are many resources of benchmarking information, it is include reports, trade groups, analysis and customers. Besides that, we can also visit to benchmark companies and the data from consulting firms.

   

That's all for this week, thank you :)