Question: 1. Karen- One of the common themes between the class materials this week is the topic of internal analysis in defining an organization's core competencies and really diving in to identify and understand what those are for the organization. From this understanding, competitive advantage can be created and maximized for the organization. For example, the video describes a value chain relationship from organizational objectives through to employee knowledge, skills, and abilities. This is demonstrated by defining the organization objectives to establishing the organizational strategy, which includes short and long-term goals (McPherson, 2014). McPherson explains that within the organizational strategy is the human resource management strategy which includes human resource development (HRD) and from HRD, core competencies can be identified, which are made up of knowledge, skills, and abilities (2014).
This video neatly displays the connection between how the human resource development strategy plays a key role in an organization's needs. Along those lines, the text supports this importance of understanding this value chain by discussing some resource decision pitfalls, such as pursuing only short-term goals, not recognizing core competencies before making strategic decisions, and not comprehending international considerations (Hoskisson, Hitt, Ireland, Harrison, 2013, p. 108). Additionally, the article by Porter and Miller supports this need for understanding core competencies with a special focus on information technology and understanding its impact on the competitive scope (1985). Other themes also discussed in this week's materials were the need to understand and keep up with the rapid pace of change, the need for global thinking, the importance of leadership planning, and the criticality of comprehending the organization's unique resources and capabilities.
The topic that continues to surprise me and capture my attention is that of global thinking because it continues to increase in scope and creates the constant need for comprehension and planning, meaning that you can never stop working on this or the organization will fall behind quickly (Hoskisson, Hitt, Ireland, Harrison, 2013, p. 109). Another topic that continues to appear in our materials is that of denial by an organization's leadership, which I see as a potential weakness in my organization. I think this is a weakness because of the rapid pace of change in the automotive industry and denial could easily creep into situations that would result in a significant threat to my organization.
2. Isabel- Marcus: You stated that "One of the most important responsibilities of a top level manager in a contemporary business organization is to ensure that the strategic model implemented is in alignment with the goals and objectives of the organization." This is well-said. Would you say your organization has a good alignment in these areas?
3. Michael .C
1. What common themes exist between the 3 class materials this week? Explain.
The common themes I see in this weeks class material is the ability to use resources to achieve a competitive advantage through linking different functional areas with an organization. As the video pointed out, using human resource development to achieve a competitive advantage through people. Ensuring the right people are hired and putting systems in place to effectively train them and keep them focused on the organizations core competencies. Effectively, the long term or strategic goals of an organization will determine what resources are necessary to achieve the goals. With development in technology, and organizations work force may need to change in order to meet organizational objectives.
2. What examples or learnings surprised you? Why?
One example that I thought was really intriguing is th impact between tangible and intangible resources. I always believed that a company with the best and most elaborate equipment or services had the competitive advantage over a less financially strong company. As an individual working for a manufacturing company, it would seem that a company with the most efficient equipment would have the competitive edge. Hoskisson's states, "Although manufacturing assets are tangible, many of the processes for using these assets are intangible...that develop over time and create competitive advantage", (Hoskisson, p. 113, 2013), this example made me think differently about the importance of equipment resources in the manufacturing industry.
3. What one learning helps you better understand a strength or weakness at your organization? Explain.
The one learning I always come back to is that people make the difference in any environment. If a company does not focus on developing and training employees on the acceptable behaviors and meeting established expectations, eventually a company with fail. Looking at different companies over the past several years that failed to innovate, move with technology, adjust to customer needs, invest in training or evaluate trends in their industry and make timely changes, failed.
4. Tammy- I agree that technology is changing the face of business rapidly. In my industry, this is a large factor for my community, internet and cell phone access continue to be a challenge for economic development. My community does not offer high speed internet in many locations and deters businesses from coming to our area. Cell phone service is limited and often weak in most of our community. As you stated: "This information is being used to create products and services that differentiates a company from their chief competitor". My community is unable to provide this type of competitive advantage and causes a large disadvantage for the entire community. Before I can put into action an economic development strategy to draw new business to our area I must first encourage high speed internet and added cell towers to our community. If I could improve technology infrastructure in our community economic development would benefit. Our handout points out three ways in which the information revolution is affecting competition. Those are changing the industry structure, creates competitive advantage and can spawn whole new businesses (Porter & Millar, 1985) . Those things are a huge disadvantage for my community. I am part of a group that is working to improve our infrastructure and therefore help our entire community.