Presenters: BSA 4
Instructor: JOHN CARLO PRIETO ORACION, CPA, MBA
WHY, WITHIN A PARTICULAR INDUSTRY OR
MARKET, DO SOME COMPANIES OUTPERFORM
OTHERS?
WHAT IS THE BASIS OF THEIR (SUSTAINED)
COMPETITIVE ADVANTAGE?
DISTINCTIVE
COMPETENCIES
Resources refer to the assets of a
company. A company’s resources
can be divided into two types:
tangible and intangible resources.
Capabilities refer to a company’s
resource -coordinating skills and
productive use.
Strategy, Resources, Capabilities, and Competencies
COMPETITIVE ADVANTAGE,
VALUE CREATION, AND
PROFITABILITY
the value customers place on
the company’s products
the p rice that a comp any
charges for its p roducts
the costs of creating those
p roducts
The Value Chain
5
6
1
2
7
3
4
The Building Blocks of Competitive Advantage
Competitive Advantage and the Value Creation Cycle
THE DURABILITY OF
COMPETITIVE ADVANTAGE
What is the durability of competitive advantage
given that other companies are also seeking to
develop distinctive competencies that will give
them a competitive advantage?
Capability of
Competitors
Barriers to
Imitation
General
dynamism of
the industry
environment
Avoiding Failure and Sustaining Competitive Advantage
Institute
Continuous
Improvement
and Learning
Focus on the Building
Blocks of Competitive
Advantage
Overcome
Inertia
Track Best Industrial
Practice and Use
Benchmarking
The Role
of Luck
STRATEGIC
THINKING: THE
ROLE OF PEOPLE,
CULTURE, AND
COMMUNICATION IN
VALUE CREATION
STRATEGIC
THINKING
Strategic thinking is a strategic capability
that helps managers to understand their
ability in predicting and controlling future
events and distinguishing them.
VALUE
CREATION
• Organisational value creation is interpreted in the context of a perspective
where personnel, customers and financial values are perceived as
interdependent and equally important for the long-term survival of the
organisation . In this way non-financial aspects of organisations are formally
linked to financial ones in the value creation process .
• a company’s culture o f value is essential for its growth, as creating value is
one o f the best ways to ensure future success .
CULTURE
the set of unique and rep eated
organizational b ehaviors that
drive the collective ab ility to
make and imp lement decis ions
(i.e., to adap t).
ROLE OF CULTURE IN VALUE
CREATION
In a strong
management team,
value growth will be
delayed if the culture is
incapable of translating
strategy into actions by
making and
implementing good
decisions quickly at all
levels and across
functions.
Values provide a
framework for
managers and
employees to calibrate
their own, and other
employee’s behaviors.
In particular, if they
support trust -building,
honesty and the free
flow of information,
they will help to
improve the quality of
decisions and speed of
implementation.
Making employees feel
valued is important
because a company’s
most valuable and
richest asset is its
employees.
Management also needs
to take actions which
demonstrate and signal
the agreed values and
desired culture.
THE ROLE OF
COMMUNICATION IN VALUE
CREATION
01
Integrating
the corporate communication process
into the strategic management, governance and
value creation processes therefore pose an
opportunity for communication professionals to
illustrate how communication can contribute to the
creation of value for organisations, and as such be of
benefit to business and to society.
02
Introducing
these communication approaches to
value creation in the organisation requires a new
responsible, integrative perspective on the role of
corporate communication.
THE ROLE OF
PEOPLE IN VALUE
CREATION
Quality of
experience,
personalisation
and direct
interaction with
the customer
have become
the keys to
creating value.
Good people
leadership
combined with a
people strategy
based around
clarity,
transparency,
creating a safe
environment, a
strong purpose, a
culture of learning,
meaning,
accountability,
fairness and
employee
wellbeing can have
an impact on
creating
sustainable value.
KEY TAKEAWAYS
Qu a l it y o f exp erien c e, p erso n a l isa t io n
a n d direc t in t era c t io n wit h t h e
c u st o mer h a v e b ec o me t h e keys t o
c rea t in g v a l u e.
People
Culture
Communic atio n can play a significant role in
the value creation process of the organisatio n,
considering the fact that the value of the
capitals produced by the organisatio n can
increase and decrease depending on what the
organisatio n says and does.
Do cumen tin g, co mmun icatin g, an d livin g
the values is o n e o f leadership’s mo st
impo rtan t co n tributio n s to shapin g
culture.
Communication
REFERENCE
Team, B. (n.d.). How Cultural Strategic Thinking Plays A Part Within
An Organization | HanoverSearch US news and blogs.
HanoverSearch US. https://www.hanoversearch.com/us/blogs/
2023-8/what-part-strategic-thinking-play-within-organization