Core Competence at NEC and GTE Teaching Notes Teaching Notes: Finntrack Strategy: Analysis and Practice ©2005 McGraw-Hill Education Europe Index • Workshop • Case Analysis • Debate • Case Questions • How to Use Your Workshop Resources • Disclaimer • Learning Objectives • Introduction to NEC • Introduction to Information Technology • Introduction to Verizon • Introduction to Telecommunications • Communication and GTE • Multinational Corporations • Business Drivers • Business Analysis • Benchmarking Click on Image Larger Image Source: NEC Corporation Index • Core Competence • Corporate Capabilities • Core Competency • Strategic Intent • Innovation • New Paradigm: Resource-Based Theory • Theory of Constraints • Value Chain • Organisational Culture • Organisational Structure • Economic Value Added • Six Sigma • • • • Competitive Advantage Strategic Planning Competition What in the World is Competitive Advantage? • What in the World is Competitive Advantage? • Competitive Postion: Competitive Advantage • What is Sustainable Competitive Advantage • Sustainable Competitive Advantage • Creating Business Value • Interest Alignment Rents and Competitive Advantage • Performance measures to support competitive advantage • Competitive Strategy: The Analysis of Strategic Position • Lecture • Competitive Strategy: The Analysis of Strategic Capability • Lecture Workshop This workshop series is designed to compliment Teaching and Learning Strategies for undergraduate, postgraduate and executive level Strategic Management and related programmes and courses using the case studies featured in the ‘Strategy Analysis and Practice’ text shown below. The overall aim is to support the learning contents offered in the relevant chapters of the book whilst expanding participants’ knowledge and skills base required to understand, review and analyse the strategic management issues involved in the case study of NEC and GTE. Strategy Analysis and Practice John McGee, Warwick Business School Howard Thomas, Warwick Business School David Wilson, Warwick Business School Case Analysis A case study is a particular method of qualitative research. Rather than using large samples and following a rigid protocol to examine a limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case. They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research. Case Analysis Case studies lend themselves especially to generating (rather than testing) hypotheses. • The scope and relevance of case studies • Types of case study • Illustrative case studies • Exploratory case studies • Critical instance case studies • Program implementation case studies • Program effects case studies • Cumulative case studies • Business school case studies • Medical case studies • History of the case study • Conclusions • Notable case studies • References • See also • External links Debate Workshop discussion topics have been divided into three parts according to the relevant chapters of the book: 1. Introduction 2. Competitive Strategy: The Analysis of Strategic Position 3. Competitive Strategy: The Analysis of Strategic Capability You should ensure that you have understood the contents of chapters 6 and 7 prior to attending any of the above debates. Also see: How to Use Your Workshop Resources Learning Objectives Learning from Case Studies: A Short Guide for Students Case Questions Please Note: At your instructor’s discretion the indicative questions below and elsewhere in this resource may be varied or deemed unnecessary for teaching and learning purposes for some courses or modules. Also see Learning Using Case Studies for further information. According to Hamel and Prahalad (1990) a company's core competency are things that a firm can do well and that meet the following three conditions 1. It provides customer benefits, 2. It is hard for competitors to imitate, and 3. It can be leveraged widely to many products and market. Have NEC and GTE (the latter is now owned by Verizon Communications) met the conditions? Using appropriate Benchmarking (Competitive/Collaborative) processes, evaluate the companies current core competencies and recommend improvements where necessary. Also see A Model for Case Analysis and Problem Solving How to Use Your Workshop Resources Viewing You will need either MS PowerPoint program or PowerPoint Viewer installed on your computer. The latter may be downloaded free from Microsoft website here. Navigation The Learning Contents (Literature Reviews) are linked to a relevant public domain o the Internet. Most, if not all pictures/images are ‘clickable’, i.e. linked to its source which provides further information on the topic or the copyright holder. If your version of PowerPoint does not show the navigation buttons on the slide, righ click on the screen and select your destination from the dialogue box. Alternatively use the small arrowheads, indicating ‘previous’ and ‘next’ respectively. Disclaimer This information is provided with the understanding that the authors and publishers do not assume any legal responsibility for the completeness or accuracy of the contents or any opinions or views expressed on these pages or linked destination sources. It is the nature of the media (Internet) that some of the pages may not always be available due to broken or dead links, withdrawals, etc. Whilst the publishers will be pleased to take any appropriate corrective action, for example, by replacing or removing the sources when possible, they unable to assume any legal responsibility for unavailability of any third party material for whatever reason beyond their direct control. Learning Objectives The main objective of the workshop is to evaluate the competitive strategy development and implementation proceses of NCE and Participants will have an opportunity of developing and enhancing their • strategic thinking skills • appreciations of the complex decision making process involved in economic strategies such as migration and outsourcing • analytical and critical thinking skills by reviewing the factors that influenced corporate centre's decisions on the businesses in their portfolios Introduction to NEC NEC Corporation (Japanese 日本電気株式会社 Nippon Denki Kabushiki Gaisha; TYO: 6701 , NASDAQ: NIPNY, LSE: NEC) is a multi-national information technologies company headquartered in Minato-ku, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology (IT) and network solutions to business enterprises, communications services providers and government. Their business is divided into the three principal segments: • IT Solutions • Network Solutions and • Electron Devices. Click on Image Source: Wikipedia Introduction to NEC The IT Solutions business delivers computing solutions to business enterprises, government and individual customers. The IT Solutions business provides software, hardware and related services. The Network Solutions business designs and provides broadband network systems, mobile and wireless communications network systems, mobile handsets, broadcast and other systems. Click on Image Source: NEC Corporation NEC's Electron Devices business includes semiconductors, displays and other electronic components. NEC produces Versa notebooks for the international market and the Lavie series for Japanese market. Introduction to NEC Proud achievements of NEC include the discovery of carbon nanotube by Sumio Iijima, and the creation of the Earth Simulator, the fastest supercomputer in the world at the time. Over the past five years NEC has ranked consistently in the top 4 companies for number of U.S. patents issued, averaging 1764 granted each year. The company was formerly known as Nippon Electric Company, Limited , before it was renamed in 1983. It still goes by the old name in Japan. Larger Image Click on Image Source: NEC Corporation Introduction to NEC • Products by Category • Computers • Networking • Semiconductor & Component • Other • Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2006 Click on Image Source: NEC Corporation Introduction to Information Technology Information technology (IT) or Information and communication(s) technology (ICT) (also Infocomm, esp. in Asia) is a broad subject concerned with technology and other aspects of managing and processing information, especially in large organizations. In particular, IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and retrieve information. For that reason, computer professionals are often called IT specialists, and the division of a company or university that deals with software technology is often called the IT department. Other names for the latter are information services (IS) or management information services (MIS), managed service providers (MSP). Click on Image Source: NEC Corporation Introduction to Information Technology • • • • • • • • • • • • • Information technology audit IT audit resources Computer security audit Computing Computer science Information science Information security World Wide Web Digital library Pattern recognition Data management Data processing RFID • • • • • • • • • Data mining Data drilling Metadata Data storage Database Data networking Technology assessment Cryptography Information Technology Infrastructure Library • Information technology governance • Telematics Introduction to Verizon Communications Verizon Communications (NYSE: VZ) is a major telecom company based in New York City. It was formed when Bell Atlantic, one of the Regional Bell Operating Companies, bought GTE, formerly the largest independent localexchange telephone company in the United States in 2000. Prior to its transformation into Verizon, Bell Atlantic had merged with another Regional Bell Operating Company, NYNEX, in 1997. The name is a portmanteau of vertical and horizon, creating a paradoxical title which sounds modern, optimistic, and pleasing to the average consumer. Click on Image Source: Copyright 2006 Verizon GTE corporate logo, 1971-2000 Introduction to Verizon Communications • History • Pre-Verizon Creation • Bell Atlantic • NYNEX • GTE • Creation of Verizon • Merger Effects • MCI Acquisition • Sale of international units • Verizon Services • Voice • Video • Data • Directory Operations • See also • Corporate Governance • Verizon's Competitors • Landline • Wireless • References • External links Click on Image Source: Copyright 2006 Verizon Introduction to Verizon Communications • Company Profile • Overview • Products & Services • Corporate History • Industry Overview • Technology • Business Segments • Overview • Domestic Telecom • Domestic Wireless • International • Information Services Source: Copyright 2006 Verizon Introduction to Verizon Communications • Consolidated Statement of Income 2004 - 2005 • Presentation • Webcast Presentations Source: Copyright 2006 Verizon Introduction to Telecommunications Telecommunications is the communication of information over a distance. More … • Explanation • Examples of human (tele)communications • History of Telecommunication • Telegraphy • Optical • Electromagnetic and electrical • Early wireless communication • Wireless telegraphy • Radio communication • See also • External links Click on Image Source: © 2006 Telenor ASA Multinational Corporations A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is a corporation/enterprise that manages production establishments or delivers services in at least two countries. • • • • Critiques Examples In fiction See also • Fostering Growth and Promoting a Responsible Market Economy - A G8 Declaration Annual Report on the Guidelines for Multinational Enterprises The 2005 edition includes a special focus on corporate responsibility in the developing world Multinational Corporations Multinational corporations (MNC) are often divided into three broad groups: • Horizontally integrated multinational corporations manage production establishments located in different countries to produce same or similar products. • Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. • Diversified multinational corporations manage production establishments located in different countries that are neither horizontally or vertically integrated. Multinational Corporations Multinationals have played an important role in globalization. Given their international reach and mobility, prospective countries, and sometimes regions within countries, must compete with each other to have MNCs locate their facilities (and subsequent tax revenue, employment, and economic activity) within. To compete, countries and regional political districts offer incentives to MNCs such as tax breaks, pledges of governmental assistance or improved infrastructure, or lax environmental and labour standards. This process of becoming more attractive to foreign investment can be characterized as a race to the bottom. Lick on Image Source: NEC Corporation Business Drivers Also see • Business Prophet - C.K. Prahalad • Insights and Opportunities: Transforming Procurement Capabilities in Asia • Economic Value Added Larger Image Source: Metapraxis Business Analysis 1. Benefits of Business Analysis 2. Roles of Business Analysts 3. Business Process Improvement 4. Goal of Business Analysts 5. External Links Also see • • • • • Quantitative Methods Strategic Business Analysis Financial Statements Quantitative Method From Wikipedia, the free encyclopedia Larger Image Click on Image Source: BizEd Quantitative Methods Quants Handbook Lecture Lecture Lecture Lecture Lecture Lecture Lecture Lecture Lecture Click on Image Source: Brian C. McCarthy Ohio University 1: 2: 3: 4: 5: 6: 7: 8: 9: Functions & Economic Relationships Economic Models/Linear Models Basic Differential Calculus Optimisation Functions of Several Variables Unconstrained Optimisation Constrained Optimisation Growth & Dynamics Introduction to Difference Equations Source: Bob Beachill Leeds Metropolitan University beach@thenet.co.uk Strategic Business Analysis SWOT Analysis • PEST market analysis tool • Porter's Five Forces Model • Value Chain • Managing Your Value Chain • Resources and Capabilities • Organisational Capabilities • Financial Analysis Larger Image Click on Image Source: Wikipedia Financial Statements: The System Larger Image Larger Image Click on Images Source: Investopedia.com Financial Statements: Analysis 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Introduction Who's In Charge? The System Cash Flow Earnings Revenue Working Capital Long-Lived Assets Long-Term Liabilities Pension Plans Conclusion Printer friendly version (PDF format) Source: Investopedia.com Financial Ratios A financial ratio is a ratio of two numbers of reported levels or flows of a company. It may be two financial flows categories divided by each other (profit margin, profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a flow divided by a level (return on equity or earnings/equity). The numerator or denominator may itself be a ratio (PEG ratio). • Ratios • • • • • • Flow-to-flow Level-to-level Ratio-to-ratio To cash flow To earnings To market cap • See also • External links Larger Image Download Financial Ratio Analysis (177K) for Microsoft Excel. Source: Baarns Consulting Group Benchmarking Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices. • Advantages of benchmarking • Competitive benchmarking • Collaborative benchmarking • Procedure • Cost of benchmarking • Benchmarking in financial markets • External links Click on Image. Larger Image. Source: OEP Competitive Position: Competitive Advantage Literature Review • Strategic Planning • Competition • What in the World is Competitive Advantage? • Competitive Postion: Competitive Advantage • What is Sustainable Competitive Advantage • Sustainable Competitive Advantage • Creating Business Value Click on Image Source: BRS • Interest Alignment Rents and Competitive Advantage • Performance measures to support competitive advantage Click on Image Source: businessballs.com Competitive Position: Competitive Advantage Literature Review • Competitive strategy • Michael Porter: Generic Strategies • Risk-related Challenges Larger Image Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Also see Annotated Lecture Outline Strategic Capability: Core Competence • Corporate Capabilities • Core Competency • Strategic Intent • Innovation • New Paradigm: Resource-Based Theory • Theory of Constraints • Value Chain • Organisational Culture • Organisational Structure • Economic Value Added • Six Sigma Larger Image Click on Image Source: Sumitomo Corporation Strategic Planning Strategic planning consists of the process of developing strategies to reach a defined objective. As we label a piece of planning "strategic" we expect it to operate on the grand scale and to take in "the big picture" (in contradistinction to "tactical" planning, which by definition has to focus more on the tactics of individual detailed activities). Click on Image Source: Long Range Planning - International Journal of Strategic Management "Long range" planning typically projects current activities and programs into a revised view of the external world, thereby describing results that will most likely occur (whether the planner wants them or not!) Also See Introduction to Strategic Management Strategic Planning "Strategic" planning tries to "create" more desirable future results by (a) influencing the outside world or (b) adapting current programs and actions so as to have more favorable outcomes in the external environment. Click on Image Source: learningworks@telus.net Strategic Planning • Methodologies • Situation Analysis • Identifying cultures • Perspectives • Ethnographical versus Clinical approach • Functionalistic versus Interpretionistic approach • Artifacts • Visible artifacts • Invisible artifacts • Culture types • Changing cultures and strategy • Approaches • Resistance • Measurements • Goals, objectives and targets • Mission statements and vision statements • Why strategic plans fail • External links Click on Image. Larger Image Source: University of Cambridge, Department of Engineering Competitive Position: Competitive Advantage Competition is the act of striving against another force for the purpose of achieving dominance or attaining a reward or goal, or out of a biological imperative such as survival. Competition is a term widely used in several fields, including economics, business, politics, and sports. Competition may be between two or more forces, life forms, agents, systems, individuals, or groups, depending on the context in which the term is used. • Sizes and levels of competition • Consequences of competition • Competition in different fields • Economics and business competition • Competition in biology and ecology • Competition in politics • Sports competition • Competition in education • The Study of competition • Competitiveness • Econometrics • See also Click on Image Source:Brecker Associates Sustainable Competitive Advantage • Owning Competitive Advantage • Competition • Hypercompetition Larger Image Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Sustainable Competitive Advantage In marketing and strategic management, sustainable competitive advantage is an advantage that one firm has relative to competing firms. The source of the advantage can be something the company does that is distinctive and difficult to replicate, also know as a core competency, for example P&G' ability to derive superior consumer insights and implement them in managing its brand portfolio. Larger Image Click on Image Source: Infosys Consulting Creating Business Value Information technology facilitates new and more efficient way of creating business value in the new economy. As a result, instead of the traditional vertically integrated value chains, organizations must adopt business models based on independent layers of value-creating activities. • Meltdown of the Value Chain Impact of rising strength of emerging economies on market expansion Role of emerging market conditions on first mover advantages Sources of first mover advantages in emerging markets Strategies to sustain these advantages • Complementing for Complexity: Leading Through Managing The first mover in an emerging market Source: General Management Review Competitive Strategy: Michael Porter • Michael Porter: Generic Strategies Larger Image Click on Image Source: www.tutor2u.net Image by benchmarkporter.com Strategic Capability: Core Competence • Internal capabilities • Corporate capabilities • Resource-based view • Capabilities in the new economy • Synergy • Patents • Effective leadership • Teamwork • Continuous learning • Tacit knowledge Larger Image Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Core Competency • Core Competency • The Work of Hamel and Prahalad • Sustainable competitive advantage • Synergy • The Competence Problem • Principles and Functions of Management - Henri Fayol • Qualities of a Successful Manager • The Motivation and Performance Obsession • Leadership and Management • Managerial Competency Questionnaire Larger Image Click on Image Source: Forio Corporation Strategic Intent • Corporate Vision, Mission, Goals and Strategies • Your Enterprise Strategy • Dynamic Business Strategy • Strategy Innovation • Marketing and Selling • Strategic Thinking • New-to-the-World Product Development • Managing Your Value Chain • Strategy Implementation Larger Image Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Innovation • Efficiency Improvement • New ways of doing business • New rapidly globalizing economy • Technological innovation • Technology Transfer • Fast Company • Reaching and servicing customers • The Entrepreneur • Innovation project management • Roadmaps • Guiding principles • Business processes Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West New Paradigm: Resource-Based Theory • Strategic Marketing and the Resource Based View of the Firm • Business Strategy • Setting Objectives & Planning • Customer Satisfaction • Performance Management • Performance Measurement System • Balanced Scorecard (BSC) • Service-Profit Chain • Sustainable Growth Strategies • Porter's Five Forces Model for Industry Analysis • Economic Value Added (EVA) • Business Architect Click on Images Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Theory of Constraints Theory of Constraints (TOC) is a body of knowledge on the effective management of (mainly business) organizations, as systems. The author is Eliyahu M. Goldratt, with many others contributing to the body of knowledge. • • • • • • • • • • • • The Thinking Process (TP) Throughput Accounting Application-specific TOC solutions Operations Supply Chain / Logistics Finance and Accounting Project Management Marketing and Sales The Six Necessary and Sufficient Questions relating to Technology Development and practice Also See References Larger Image Click on Image Source: Osaka Gakuin University A Guide to Implementing the Theory of Constraints (TOC) Value Chain Click on Image Source: Vickers Organisational Culture Organizational culture comprises the attitudes, values, beliefs, norms and customs of an organization. Whereas organizational structure is relatively easy to draw and describe, organizational culture is considered to be less tangible and more difficult to measure. It is also called Company Culture. • • • • • • • • • Influences on organizational culture Strong/Weak cultures Classifying organizational culture Hofstede Deal and Kennedy Charles Handy Edgar Schein Elements of culture Critical Views on Organizational Culture • Figures in organizational culture • See also • Sources Click on Image. Larger Image Source: University of N. Carolina Organisational Structure Organizational structure is the way in which the interrelated groups of an organization are constructed. The main concerns are effective communication and coordination. • Pre-bureaucratic • Bureaucratic • Functional Structure • Divisional Structure • Post-Bureaucratic • Matrix organization • Multi-Unit Organization • Adhocracy • See also Click on Image. Larger Image Source: © 2004-2006 Visitask Economic Value Added What Does Economic Value Added Really Mean? Click on Images for further information Source: David Harper, (Contributing Editor - Investopedia Advisor) Larger Image Six Sigma Six Sigma was pioneered by Bill Smith at Motorola in 1986[1]. Originally, it was defined[2] as a metric for measuring defects and improving quality; and a methodology to reduce defect levels below 3.4 Defects Per (one) Million Opportunities (DPMO). Six Sigma is a registered service mark and trademark of Motorola, Inc[3]. Motorola has reported over US$17 billion savings[4] from Six Sigma to date. AlliedSignal and GE became early adopters of Six Sigma and reported benefits of over US$300 million during its first year of application[5]. Their CEO's, Larry Bossidy and Jack Welch, played a vital role in popularizing Six Sigma. Other major organizations who claim to have benefited from Six Sigma implementation are Ford, Caterpillar, Microsoft, Raytheon, Quest Diagnostics, Seagate Technology, Siemens, Merrill Lynch, Lear, 3M and many more. Click on Image Source: KETCH.ca Six Sigma • Definition • Application & Success • • • • • Healthcare Banking Insurance Construction Military • Methodology • DMAIC • DMADV • Roles Required for Implementation • Examples of Some Key Tools Used • Criticisms of Six Sigma • • • • • Of its origin Of the term: Six Sigma Of statistics Of methods Of effects • References • See also • External links Click on Image Source: QCI International. All rights reserved. Competitive Position - Competitive Advantage 1/4 Lecture Opening Remarks It is useful to start the session by recapping on the previous lecture and emphasizing the notion of ‘strategy as imperfection’ or the quest for ‘unfair’ advantage. This lecture explores the idea of competitive advantage in more detail and puts some flesh on the bare bones of generic strategies introduced in the preceding session. The lecture focuses on the idea that strategy is about the position of an organisation with respect to its markets and competitors (the so called market-based or positioning school) and looks at the relationships between market structure, pricing and strategy. The Market Positioning School A recap on the ‘generic strategies’ framework introduced briefly in the last chapter and restatement of the stuck in the middle hypothesis. Larger Image Click on Image Source: Wikipedia Competitive Position - Competitive Advantage 2/4 The Nature and Source of Cost Advantage A more detailed look at the nature and sources of cost advantage focussing on the links between economies of scale, scope and learning and the achievement of cost advantage. The Nature and Source of Differentiation Advantage A more detailed look at the nature and source of differentiation advantage and the risks associated with this strategy emphasising the difference between differentiation and cost based strategies. Identifying the potential for differentiation. The Concept of Competitive Advantage A definition of competitive advantage and a description of its constituent elements. An explanation of firm-specific imperfections as the source of competitive advantage and the interrelationship between industry structure and competitive advantage.. This latter point may be omitted from undergraduate lectures and developed in a tutorial context. Figure 6.7. An explanation of the concept of sustainability and its determinants (on undergraduate programmes this may be included a little later in the course) Competitive Position - Competitive Advantage 3/4 Three Major Routes to Competitive Advantage: Is it possible for a firm to pursue more than one generic strategy? A re-statement of the ‘stuck in the middle’ hypothesis and a summary of the reasons for arguing that, in order to be successful, a firm should commit to a single strategy. The critique of this position and the implications of composite strategies. The relationship between generic strategies and market structure (this may be omitted on undergraduate programmes). On undergraduate programmes the following sections may form the basis of a second lecture Market Segmentation Analysis The rationale for market segmentation analysis. The concept of offer curves and price/quality trade-offs (this element may be omitted on undergraduate programmes). The identification of segmentation variables. Value Creation and Value Analysis The concept of value and consumer surplus. The link between value, competitive strategy and competitive advantage. Value maps could be included if time permits but can be omitted without losing the main thrust of the argument. Competitive Position - Competitive Advantage 4/4 Strategic Group Analysis An explanation of the concept of strategic groups and rationale for this kind of analysis. Mapping strategic groups over time and strategic groups in practice. Industry Transformation Using the 5 forces framework to gain insight into industry transformation. On undergraduate programmes this may be omitted from the main lecture and developed in tutorial sessions. Business Models This is an optional part of this session and may be considered in a later slot. An explanation of the terminology. The key elements of a business model. Business models in practice. Achieving a sustainable and defensible strategic position. Larger Image Click on Image Source: Vadim Kotelnikov, GIVIS, Ten3 East-West Strategic Capability: Core Competence 1/3 Lecture – a recap of prior concepts and the logic of the market-based view of the firm. A discussion of the way this lecture fits with the overall framework of the strategy course. SLIDE: Figure 1.6 A systemic model of strategy The Resource-based View of the Firm- an explanation of the main tenets of the resource-based view and the ways in which it differs from the market-based view. SLIDE: The market-based versus the resource-based view of the firm. The Language of Resources and Capabilities – a discussion of key terminology, for example ‘capabilities’, ‘competences’, ‘strategic assets’ highlighting the fact that different authors use different terms to refer to similar concepts. SLIDE: Some key definitions SLIDE: Core Competences = Distinctive Capabilities = Strategic Assets The Importance of Intangibles – an explanation of what is meant by intangibles and why they are considered to be of particular importance SLIDE: Identifying Intangibles p. 263 Strategic Capability: Core Competence 2/3 Determining the Value of Competences – an explanation of the concepts of imitability, durability, substitutability and appropriability. SLIDE: Figure 7.5 Linking the Market-based and Resource-based Views – discussion of the ways in which these two perspectives complement each other which draws on the notion of key success factors. For undergraduates this could be the concluding slide. SLIDE 7.10 SLIDE: Figure7.6 Strategic Capability: Core Competence 3/3 Competence-based Competition – an introduction to the notions of strategic intent and strategic innovation, emphasizing the role of learning. SLIDE: Figure 7.7 Competitive strategy in practice – some prescriptive advice about managing the business for value and positioning the business for growth. More suited to postgraduate students with management experience. SLIDE: Figure 7.2 SLIDE: Figure 7.15 Concluding comments – a brief summary of the key ideas highlighting of the fact that every firm is different and that managerial processes, information and communication together with intangible assets and core competences are central to developing and sustaining competitive advantage. Click on Image Source: SUNY Cobleskill