Module 4

Bachelors in Business
Administration

BBA
STRATEGIC MANAGEMENT

Module 4
Evaluating Company Resources and

Competitive Capabilities

Issues:

Question 1 : How well the present strategy
working?
Question 2 : What company resource SW
and OT ?
Question 3 : Are they company prices &
costs competitive?
Question 4 : How strong is the company
competitive position?

Question 1 : How well the present
strategy working?

- To provide a good
overview of business
position fundamentally
healthy or unhealthy

Question 1 : How well the present
strategy working?

2 steps involved
• Determine current strategy of

company
• Examine KEY INDICATOR of

strategic and financial
performance



Question 2 : What company
resource SW and OT ?

- To provide a good overview of business
position fundamentally healthy or
unhealthy



Identify company Strength &
Resources Capabilities

STRENGTH
- good doing / characteristics
- Enhanced competitiveness

Forms of strength :
• Skill / important expertise

• Valuable physical assets
• Human assets

• Organization assets
• Intangible assets

Identify company Weakness &
Resources Deficiencies

Weakness
– company lack / does

poorly
- Internal weakness can
relate to deficiencies in
important skills / expertise /

intellectual capital

Forms of weaknesses :
• Lack of physical assets

• Weak competitive
capabilities

What is Competence, Core Competencies &
Distinctive Competence

Competence is an internal
activity that a company

perform BETTER than other
internal activities.

Core competence is a well
performed internal activity

that is CENTRAL to a
company strategy,
competitiveness and
profitability.

What is Competence, Core Competencies &
Distinctive Competence

Distinctive
competence is
a competitively

valuable
activity that

company
performed
BETTER than
its rivals.

Strategic Management Principle

Question 3 : Are they company
prices & costs competitive?

-To compete successfully, cost must be in line
with closer rivals

Purchasing cost
Technology and equipment's

Production cost
Marketing cost
Distribution cost

Principle of Competitive Market

Strategic Cost Analysis (SCA)
& Value Chains (VC)

- Competitors must ALERT to compare with their
rivals

SCA – explore how cost is compared against rivals
▪ Focus on firm cost position relative to rivals
VC – analytical tools and biz process that
performed design, produce, market, delivery and
support a product or service

Question 4 : How strong is
the company competitive
position?

- Using tools of value chains,
strategic cost analysis and

benchmark to determine company
cost competitiveness

The Value Chain System

Sample of Value Chain System

Key Value Chain Activities





Ethical Standards in Benchmarking
: DO & DONTS

COMPETITIVE STRENGTH
ASSESSMENT

- To provide useful conclusion about
company competitive situation

- To provide guidelines to make a move
to exploit rival thru their weaknesses

BBA – STRATEGIC MANAGEMENT

END OF MODULE 4

College MCS MODULE 1
College MCS