Slide 3.1Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Competences

© Robert Jones 2010 and 2012

robert.jones@anglia.ac.ukhttp://www.cambridgemba.wordpress.com/strategy

Slide 3.2Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

What is a “competence” ?

Slide 3.3Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Competences

How an organisation exploits its resources

Efficiency and effectiveness of resources– How they are managed– Cooperation between people– Adaptability– Innovation– Customer and supplier relationships– Learning

Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.4Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Resources

• Physical resources– Machines, buildings, production capacity

• Financial resources– Capital, cash, debtors/creditors, suppliers of money

(shareholders, bankers etc)• Human resources

– Number and mix of people, skills and knowledge• Intellectual capital

– Patents, brands, business systems, customer databases, “goodwill”

Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.5Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Value Chain

Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.

Exhibit 3.6 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.6Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

physical, financial, human and intellectual resources

CompetenceCompetence Competence

http://etc.usf.edu/clipart/13100/13110/bundlesticks_13110_lg.gif

Slide 3.7Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.8Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

http://www.youtube.com/watch?v=hpUm_UQgid0

Slide 3.9Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Value Chain

Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.

Exhibit 3.6

A competence

Johnson and Scholes (2005), Exploring Corporate Strategy

© R Jones 2010, based on:-

Slide 3.10Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Zara: IT for Fast Fashion

by Andrew McAfee, Anders Sjoman, Vincent Dessain23 pages. Publication date: Jun 25, 2004.

ZARAby David J. Arnold26 pages. Publication date: Mar 12, 2003.

Zara: Managing Stores for Fast Fashion

by Zeynep Ton, Elena Corsi, Vincent Dessain19 pages. Publication date: Nov 23, 2009.

Zara's Secret for Fast Fashion2/21/2005Spanish retailer Zara has hit on a formula for supply chain success that works. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. From Harvard Business Review.

by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca

Slide 3.11Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Some businesses achieve extraordinary profits compared with others in the same industry

How?

Slide 3.12Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.13Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.14Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.15Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.16Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Sources of Cost Efficiency

Exhibit 3.3 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.17Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

http://www.youtube.com/watch?v=oJCuYNvrE8g

Slide 3.18Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Value Chain

Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.

Exhibit 3.6

A competence

© R Jones 2010, based on:-

Slide 3.19Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Experience Curve

Exhibit 3.4 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.20Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.21Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

What is Apple’s competence ?

Slide 3.22Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.23Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Value Network

Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.

Exhibit 3.7 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.24Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

ARM plcAnnual Report

Slide 3.25Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Lee Smith, ARM Fellow Presentation to Cambridge UniversityEntrepreneurs,9th February 2008

Slide 3.26Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Lee Smith, ARM Fellow Presentation to Cambridge University Entrepreneurs,9th February 2008

Slide 3.27Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Strategic Capabilities andCompetitive Advantage

Exhibit 3.1 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.28Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Capabilities for Sustainable Competitive Advantage

• Value• Rarity• Robustness• Non-substitutability• Dynamic capabilities

Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.29Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.30Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Strategic Capability- the terminology

Exhibit 3.2 Johnson and Scholes (2005), Exploring Corporate Strategy

Slide 3.31Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

http://www.youtube.com/user/honda?blend=1&ob=4

The Honda Channel

Slide 3.32Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

What is Honda’s competence ?

Slide 3.33Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

The Value Network

Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of The Free Press, a division of Simon & Schuster Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.

Exhibit 3.7 Johnson and Scholes (2005), Exploring Corporate Strategy

© R Jones 2010, based on:-

Slide 3.34Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.35Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Slide 3.36Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

What is Toyota’s competence?

Slide 3.37Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Toyota Production System

Jidoka Manufacturing high-quality products

Slide 3.38Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005http://www.ifm.eng.cam.ac.uk/dstools/process/pdca.html

Slide 3.39Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Toyota Production System

Just-in-Time Philosophy of complete elimination of waste

Slide 3.40Exploring Corporate Strategy, Seventh Edition, © Pearson Education Ltd 2005

Conclusion:

What is a “competence” ?