MGMT 4001 Dalhousie Mod 6 HSBC Core Competency and Financial Performance Paper & Sheet fill the worksheets for HSBC Canada, ppt lessons is provided  also n

MGMT 4001 Dalhousie Mod 6 HSBC Core Competency and Financial Performance Paper & Sheet fill the worksheets for HSBC Canada, ppt lessons is provided 
also need to reply 2 classmates on online discussion board for each worksheet. so have to reply total in 4 students, and reply 40 words each. 
the financial one due on June 2th and will provide classmate’s worksheet after post
the core competency one due on June 4th and will provide classmate’s worksheet after post. ☐V
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☐ R
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☐ V
☐ R
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☐ N
Implications for Competitiveness
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Competitive Disadvantage
Competitive Parity
Temporary Competitive Advantage
Sustainable Competitive Advantage
Competitive Disadvantage
Competitive Parity
Temporary Competitive Advantage
Sustainable Competitive Advantage
Competitive Disadvantage
Competitive Parity
Temporary Competitive Advantage
Sustainable Competitive Advantage
Competitive Disadvantage
Competitive Parity
Temporary Competitive Advantage
Sustainable Competitive Advantage
Competitive Disadvantage
Competitive Parity
Temporary Competitive Advantage
Sustainable Competitive Advantage
* Check marks by V, R, I or N indicate the Value, Rarity, Inimitability and Non-Substitutability of an advantage in the market place.
Core
Competency?
VRIN*
Why nonsubstitutable?
Why Inimitable?
Using what
value chain
activities or
resources
Why Rare?
Organizational
Capability
How is Value
Created?
Core Competency Assessment
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
Ratio Table
Performance Measure
20__
Liquidity
Current Ratio
Cash Ratio
Asset Management
Raw Materials Turnover in Days
WIP Turnover in Days
Finished Goods Turnover in
Days
A/R Turnover in Days
A/P Turnover in Days
Cash Conversion Cycle
Fixed Assets Turnover
Total Asset Turnover
Long-term Debt Paying Ability
LT Debt to Total Capitalization
Cash Flow Coverage Ratio
Profitability
Gross Margin
Operating Profit Margin
Net Profit Margin
ROA
ROE
20__
20__
Industry
Average
MGMT 4001
Strategy Formulation & Analysis
Module 6 – Core Competency Analysis
1
Learning Objectives
vDescribe what the organization’s capabilities
are and how they contribute toward
competitive advantage
vDemonstrate proficiency in the use of core
competency analysis to determine the
organization’s ability for sustainable
competitive advantage
Module 6 – Core Competency Analysis
2
Identifying the Components of a Single-Business Company’s Strategy
Module 6 – Core Competency Analysis
3
Identifying Valuable Company Capabilities
v A capability concerns the proficiency with which a company can perform an activity
v In general, the competitive value of a company’s capability to perform an activity
depends on two factors:
Ø The proficiency a company has achieved in performing the activity
Ø The role of the activity in the company’s strategy and its importance to the company’s
competitive success and performance
Module 6 – Core Competency Analysis
4
Identifying Valuable Company Capabilities
v There are four competitively relevant levels of capability:
Ø Minimal capability – achieved when a company has performed an activity one or more times but
still lacks the proficiency needed to perform the activity consistently well and at acceptable cost
Ø A demonstrated competence in performing an activity
Ø A core competence – a demonstrated competence in performing a competitively relevant activity
that is central to the company’s strategy
Ø A distinctive competence – the capability to perform a competitively valuable activity better than
any other company in the industry
Module 6 – Core Competency Analysis
5
Examples of Company Capabilities
v Specific skills and expertise (like proficiencies in low-cost manufacturing, picking locations for new stores, or
designing an unusually appealing and functional social media website)
v Proficiency in a single discipline or function that is performed in a single department or organizational unit
v Inherently multidisciplinary and cross-functional activities that are the result of effective collaboration among
people with different expertise working in different organizational units
Ø
A capability in continuous product innovation, for example, comes from teaming the efforts of people and groups with
expertise in market research, new product R&D, design and engineering, cost-effective manufacturing, and market
testing
Virtually all organizational capabilities are knowledge based,
residing in people and in a company’s intellectual capital
Module 6 – Core Competency Analysis
6
A Core Competence –
A Competitively Valuable Capability
v A proven capability takes on a higher level of competitive value and becomes a core
competence when a company achieves a high level of proficiency in performing an
activity that is central to its strategy and competitiveness.
v A core competence is a more competitively valuable capability because
Ø It adds power to a company’s strategy
Ø This added power, in turn, positively impacts
ü The company’s efforts to compete successfully against rivals
ü The company’s ability to achieve its financial and strategic objectives
ü The company’s overall performance
Module 6 – Core Competency Analysis
7
Examples of Core Competencies
v A core competence can relate to any of several aspects of a company’s business and strategy:
Ø Expertise in product innovation
Ø Expertise in developing new and more efficient production technologies
Ø Expertise in marketing
Ø Skills in manufacturing a high-quality product at a low cost
Ø Strong capability to fill customer orders accurately and swiftly
Often, the most valuable core competencies are grounded in cross-department combinations of
knowledge and expertise rather than being the product of a single department or work group
Module 6 – Core Competency Analysis
8
A Distinctive Competence –
A Very Competitively Valuable Capability
v A core competence rises to an even higher level of competitive importance and becomes a
distinctive competence when a company is able to achieve sufficiently high proficiency to
perform a competitively important activity better than its rivals
v A distinctive competence thus represents a greater proficiency (and a stronger capability) than
a core competence
v Because a distinctive competence represents a level of proficiency that rivals do not have, it
qualifies as a competitively superior capability with competitive advantage potential
Module 6 – Core Competency Analysis
9
Why a Distinctive Competence Matters
vA distinctive competence adds real power to a firm’s strategy and
provides a pathway to competitive advantage when:
Ø It relates to an activity important to competitive success
Ø Rival companies do not have offsetting competencies or capabilities
Ø It is costly and time-consuming for rivals to imitate the competence
Module 6 – Core Competency Analysis
10
v A particular resource or capability which may not seem to have much
competitive value by itself can be much more valuable when bundled
with certain other company resources and/or capabilities (that also,
taken singly, appear to lack “high” competitive value).
Ø For example, Nike’s resource bundle of styling expertise, professional endorsements, well-regarded
brand name and image, marketing and brand-building skills, network of distributors/retailers, and
managerial know-how has provided sufficient competitive power for Nike to remain the dominant
global leader in athletic footwear and sports apparel for over 20 years
Astute Bundling of a Company’s Resources and Capabilities
Can Result in Added Competitive Power
Module 6 – Core Competency Analysis
11
vThe competitive power of a resource or capability is measured by
how many of the following four tests it can pass:
1.
Does the resource or capability have competitive value? Valuable
2.
Do many or most rivals have much the same resource or capability? Rare
3.
Is the resource or capability hard to copy? Inimitable
4.
Can the value of a resource or capability be trumped by substitute resources and
capabilities of rivals? Non-substitutable
Ways to Test the Competitive Power of a Resource or Capability
Module 6 – Core Competency Analysis
12
• Source of Differentiation
• Identify > Cultivate > Exploit
• Characteristics
• Provide potential access to
variety of markets
• Make significant contribution to
perceived customer benefits of
Co
re
C
om
pe
ten
cy
An
aly
end product
• Difficult for competitors to
sis
nV
Valuable
nR
Rare
nI
Hard to Imitate
nN
Non-Substitutable
emulate
Module 6 – Core Competency Analysis
13
Core Competency Analysis
Is a resource or capability…
Valuable Difficult
(V)
to Imitate (I)
Rare
(R)
Non Substitutable(N)
No
No
No
No
Yes
No
No
No
Competitive parity
Yes
No
Yes
No
Temporary competitive
advantage
Yes
Yes
Yes
Yes
Sustainable competitive
advantage
Module 6 – Core Competency Analysis
Implications
for Competitiveness
Competitive disadvantage
14
A Company’s Important Resources and Capabilities Must Be Dynamic and
Freshly-Honed to Sustain Its Competitiveness
v Why is it important for a company to keep competencies updated and on the cutting-edge?
v It often takes freshly-honed and sometimes totally refurbished or altogether new
resources/capabilities
Ø To effectively respond to ongoing changes in customer needs and expectations
Ø To protect a company’s long-term competitiveness against the improving resources/capabilities and strategic
maneuvering of rivals to steal away customers
Ø To help maintain or improve its performance over the long-term
Module 6 – Core Competency Analysis
15
Dynamic Capabilities – What to Do?
v Management’s challenge in developing dynamic capabilities has two
elements:
1.
Attending to ongoing recalibration of existing competencies and capabilities
2.
Casting a watchful eye for opportunities to develop totally new capabilities for
delivering better customer value and/or outcompeting rivals
Keeping company competencies freshly honed and on the
cutting edge is a strategically important top management task.
Module 6 – Core Competency Analysis
16
Complete Module 6 Activities
Module 6 – Core Competency Analysis
17

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