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Strategic Planning Module 6 - Part 2 Internal Analysis of the Company Instructor: Moataz Darwish, MBA Contents 6.1 Opportunity Cost 6/3 6.2 Fixed Costs, Variable Costs and Sunk Costs 6/4 6.3 Marginal Analysis 6/5 6.4 Diminishing Marginal Product 6/8 6.5 Profit Maximisation 6/10 6.6 Estimating Production Costs 6/10 6.7 Accounting Techniques: Break Even, Payback and Sensitivity 6/13 6.8 Accounting Ratios 6/17 6.9 Benchmarking 6/22 6.10 Research and Development 6/23 6.11 Human Resource Management 6/29 6.12 The Scope of the Company 6/31 6.13 The Value Chain 6/40 6.14 Competence 6/43 6.15 Strategic Architecture 6/49 6.16 Strategic Advantage Profile 6/54 EBS MBA / AUC 2 The Model EBS MBA / AUC 3 Resource Management Management of resources has a direct bearing on the competitive position of the company; How can the company rationalize resource planning and allocation?  Identify the company’s approach to resource planning. REACTIVE look one period ahead and hires and fires accordingly PROACTIVE product life cycles product launch periods selecting a planning horizon (beyond which so little is known) developing a resource plan (incl inventories, learning curves..) the implications for marketing strategy EBS MBA / AUC 4 Human Resource Management Effective human resource management is important for strategy for two reasons: 1. people in a company are a resource like any other and how effectively that resource operates can be affected by strategic change. 2. strategic changes are introduced and implemented by people, and resistance to change can exert a powerful constraint Adaptability and the ability to cope with strategic change is a major on success. objective of human resource management. EBS MBA / AUC 5 Human Resource Management One of the main characteristics of an organization is its culture. Culture is the set of beliefs, values and managerial approaches; Reflected in its structures, systems and approach to the developme

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