Unformatted Attachment Preview
*Part 1
Resource Based Theory
In the readings for this week we learned that a strategic resource is an asset that is
valuable, rare, difficult to imitate, and nonsubstituble. Southwest Airlines was illustrated
as a company that demonstrates these characteristics.
This week’s readings include:
Financial Ratio Analysis
•
Fourteen Key Business Ratios Used by D&B
https://www.dnb.com/product/contract/ratiosP.htm
• The Seven Key Ratios Used in Key Ratio Analysis
http://ezinearticles.com/?The-Seven-Key-Ratios-UsedAnalysis&id=5873597
in-Key-Ratio-
External and Internal Environment Assessment
•
•
•
•
•
•
•
•
•
Industry Analysis: The External Factor Evaluation (EFE) Matrix
http://www.maxi-pedia.com/EFE+matrix+external
Porter’s Five Force Model
http://www.maxi-pedia.com/Five+Forces+model+by+Michael+Porter
VRIO Analysis
http://www.strategicmanagementinsight.com/tools/vrio.html
http://chris264.wordpress.com/2012/09/23/vriovaluerarityimitabilityorganization/
IFE (Internal Factor Evaluation)
http://www.maxi-pedia.com/IFE+EFE+matrix+internal+factor+evaluation
Balanced Scorecard
http://www.maxi-pedia.com/balanced+scorecard+method+what+is
SWOT Matrix
http://www.maxi-pedia.com/SWOT+analysis+matrix+method+model
TOWS
http://www.volunteerhub.com/blog/the-tows-matrix-putting-a-swot-analysis-intoaction/
Balanced Scorecard
http://www.maxi-pedia.com/balanced+scorecard+method+what+is
Product Life Cycle
http://www.maxi-pedia.com/product+life+cycle+plc
Learning Activity #1
Apply this concept to the organization that you currently work for or an organization that
you have worked for in the past. You can use the company you choose in the Week 1 5
P’s Learning Activity if you don’t have an employer to choose from. (I am currently not
working for an organization. I chose Samsung for my week 1 assignment,
therefore please use Samsung for this assignment as well. Thank you!) Discuss
your views on the applicability of this theory to the success of the organization that you
have chosen and discuss how the organization demonstrates each of these
characteristics.
*Part 2
1. A summary step in conducting an internal strategic-management audit is to construct
an IFE Matrix. This strategy-formulation tool summarizes and evaluates the major
strengths and weaknesses in the functional areas of a business, and it also provides a
basis for identifying and evaluating relationships among these areas.
2. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a
scientific approach should not be interpreted to mean this is an all-powerful technique.
B. An IFE Matrix is developed in five steps:
1. List key internal factors as identified in the internal-audit process. Use a total of
from 10 to 20 internal factors including both strengths and weaknesses.
2. Assign a weight ranging from 0 (not important) to 1.0 (very important) to each
factor. The sum of all the weights must equal 1.0.
3. Assign a 1-4 rating to each factor to indicate whether that factor represents a
major weakness (1), minor weakness (2), minor strength (3), or major strength
(4).
4. Multiply each factor's weight by its rating to determine a weighted score for each
variable.
5. Sum the weighted scores for each variable to determine the total weighted score
for the organization.
C. Additional IFE Matrix Information
1. The total weighted score can range from a low of 1.0 to a high of 4.0, with the
average score being 2.5. Scores well below 2.5 characterize organizations that
are weak internally, whereas scores significantly above 2.5 indicate a strong
internal position.
2. When a key internal factor is both a strength and weakness, the factor should be
listed twice in the IFE Matrix, and a weight and rating should be assigned to each
statement.
3. An example of an IFE Matrix is provided in Table 4-9 for a retail computer store.
4. In multidivisional firms, each autonomous division or strategic business unit
should construct an IFE Matrix. Divisional matrices can then be integrated to
develop an overall corporate IFE Matrix.
Source: David, F. R. (2013). Strategic Management. A Competitive Advantage
Approach. New Jersey, NJ: Pearson Education Inc.
Learning Activity #2
Walt Disney has five major division as follows: 1) Media Networks, 2) Parks & Resorts,
3) Studio Entertainment, 4) Consumer Products, and 5) Interactive Media. Complete a
IFE Matrix for Disney by following the steps below:
Step 1 – Go to http://corporate.disney.go.com/ and review Disney’s five major divisions.
Step 2 - Review Disney’s most recent Annual Report
athttp://corporate.disney.go.com/investors/annual_reports.html. Determine what you
believe are the four major weaknesses’ and the four major strengths critical to strategic
planning within each of Disney’s five business segments.
Step 3 – With the information from Step 2, develop divisional IFEMs for each Disney
Division.
Step 4 – Prioritize the 20 weaknesses and the 20 strengths developed in the prior step
so Disney’s top executive can develop an IFEM for the overall company.
*Part 1
Resource Based Theory
In the readings for this week we learned that a strategic resource is an asset that is
valuable, rare, difficult to imitate, and nonsubstituble. Southwest Airlines was illustrated
as a company that demonstrates these characteristics.
This week’s readings include:
Financial Ratio Analysis
•
Fourteen Key Business Ratios Used by D&B
https://www.dnb.com/product/contract/ratiosP.htm
• The Seven Key Ratios Used in Key Ratio Analysis
http://ezinearticles.com/?The-Seven-Key-Ratios-UsedAnalysis&id=5873597
in-Key-Ratio-
External and Internal Environment Assessment
•
•
•
•
•
•
•
•
•
Industry Analysis: The External Factor Evaluation (EFE) Matrix
http://www.maxi-pedia.com/EFE+matrix+external
Porter’s Five Force Model
http://www.maxi-pedia.com/Five+Forces+model+by+Michael+Porter
VRIO Analysis
http://www.strategicmanagementinsight.com/tools/vrio.html
http://chris264.wordpress.com/2012/09/23/vriovaluerarityimitabilityorganization/
IFE (Internal Factor Evaluation)
http://www.maxi-pedia.com/IFE+EFE+matrix+internal+factor+evaluation
Balanced Scorecard
http://www.maxi-pedia.com/balanced+scorecard+method+what+is
SWOT Matrix
http://www.maxi-pedia.com/SWOT+analysis+matrix+method+model
TOWS
http://www.volunteerhub.com/blog/the-tows-matrix-putting-a-swot-analysis-intoaction/
Balanced Scorecard
http://www.maxi-pedia.com/balanced+scorecard+method+what+is
Product Life Cycle
http://www.maxi-pedia.com/product+life+cycle+plc
Learning Activity #1
Apply this concept to the organization that you currently work for or an organization that
you have worked for in the past. You can use the company you choose in the Week 1 5
P’s Learning Activity if you don’t have an employer to choose from. (I am currently not
working for an organization. I chose Samsung for my week 1 assignment,
therefore please use Samsung for this assignment as well. Thank you!) Discuss
your views on the applicability of this theory to the success of the organization that you
have chosen and discuss how the organization demonstrates each of these
characteristics.
*Part 2
1. A summary step in conducting an internal strategic-management audit is to construct
an IFE Matrix. This strategy-formulation tool summarizes and evaluates the major
strengths and weaknesses in the functional areas of a business, and it also provides a
basis for identifying and evaluating relationships among these areas.
2. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a
scientific approach should not be interpreted to mean this is an all-powerful technique.
B. An IFE Matrix is developed in five steps:
1. List key internal factors as identified in the internal-audit process. Use a total of
from 10 to 20 internal factors including both strengths and weaknesses.
2. Assign a weight ranging from 0 (not important) to 1.0 (very important) to each
factor. The sum of all the weights must equal 1.0.
3. Assign a 1-4 rating to each factor to indicate whether that factor represents a
major weakness (1), minor weakness (2), minor strength (3), or major strength
(4).
4. Multiply each factor's weight by its rating to determine a weighted score for each
variable.
5. Sum the weighted scores for each variable to determine the total weighted score
for the organization.
C. Additional IFE Matrix Information
1. The total weighted score can range from a low of 1.0 to a high of 4.0, with the
average score being 2.5. Scores well below 2.5 characterize organizations that
are weak internally, whereas scores significantly above 2.5 indicate a strong
internal position.
2. When a key internal factor is both a strength and weakness, the factor should be
listed twice in the IFE Matrix, and a weight and rating should be assigned to each
statement.
3. An example of an IFE Matrix is provided in Table 4-9 for a retail computer store.
4. In multidivisional firms, each autonomous division or strategic business unit
should construct an IFE Matrix. Divisional matrices can then be integrated to
develop an overall corporate IFE Matrix.
Source: David, F. R. (2013). Strategic Management. A Competitive Advantage
Approach. New Jersey, NJ: Pearson Education Inc.
Learning Activity #2
Walt Disney has five major division as follows: 1) Media Networks, 2) Parks & Resorts,
3) Studio Entertainment, 4) Consumer Products, and 5) Interactive Media. Complete a
IFE Matrix for Disney by following the steps below:
Step 1 – Go to http://corporate.disney.go.com/ and review Disney’s five major divisions.
Step 2 - Review Disney’s most recent Annual Report
athttp://corporate.disney.go.com/investors/annual_reports.html. Determine what you
believe are the four major weaknesses’ and the four major strengths critical to strategic
planning within each of Disney’s five business segments.
Step 3 – With the information from Step 2, develop divisional IFEMs for each Disney
Division.
Step 4 – Prioritize the 20 weaknesses and the 20 strengths developed in the prior step
so Disney’s top executive can develop an IFEM for the overall company.