The chapter is about organizational analysis by doing an internal scanning. It first considers a resource-based approach to organization analysis that focuses on identification, development, and making the most of an organization’s resources and competencies. An organization must have resources and capabilities that can continuously be adapted and reconfigured whenever uncertainties exist to exploit these resources maximally. An organization must be cognizant of its core competencies as well as its core rigidity. In fact, it must opt for having distinctive competencies whereby their competencies are greater than the competitors have. A VRIO framework is instrumental in scanning the functional resources and capabilities of an organization as it considers the factors of value, rareness, imitability, and the organization itself (Wheelen, Hunger, Hoffman, & Bamford, 2017). Resources can be effectively utilized to gain a competitive edge, a state made possible by embracing a resource-based approach to strategy analysis.
Another aspect that an organization must be keen on is ensuring the sustainability of its distinctive competencies. Sustainability is achieved by prolonging durability and preventing imitability of an organization’s fundamental resources, capabilities or core competencies. Some business models are significant to ensure sustainability and easy utilization of resources. An organization must select a business model that will enable them to have more revenues than what they spend. Many companies have operated profit multiplier and efficiency models most of the time, which have worked for them.
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A good corporate culture should be determined at all times to shape the behavior of employees in an organization to achieve better corporate performance. All stakeholders must equitably embrace the mission, objectives, strategies, and policies of an organization for success to be guaranteed. If the corporate culture is initiated well, an organization will definitely have a global competitive advantage over its rivals. Stakeholders must be aggressive at updating their technologies because of the dynamism of the world today, and at the same time careful to preserve the brand as well as corporate reputation before consumers (Wheelen, Hunger, Hoffman, & Bamford, 2017). This can be achieved by being actively involved in strategic research and development to understand how consumers are responding to new products and new processes that are rolled out.
Reference
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy . Pearson. Chapter 5 Internal Scanning : Organizational Analysis .
