Intangible Factors in Strategic Analysis

Intangible Factors in Strategic Analysis

  • The most intangible things can have the greatest impacts in reality

Model of organizational culture Goffee-Jones Matrix –

  • Sociability < — > Solidarity (how well diferent departments communicate together) – Networked, Fragmented, Mercenary, Communal
  • the intangibles of culture affect the tangible behaviour of businesses and individuals
Cultural Capabilties
  • Cultural type for inovation
  • willingness and ability to adapt to unforseen circumstances
Strategic management skols
Cultural Web – The Paradigm
  • Stories
  • Rituals & routines
  • Symbols
  • Control systems
  • Organisational structures
  • Power structures

Stakeholder theory:
Internal
  • Executive officers
  • Broad of directors
  • Stockholders
  • Employees
External – Customer, suppliers, creditors, governments, unions, competitors, general public
CSR and Reputation management are joined and are an application of CRS
Power-interest matrix
Brand Equity tables:
  • Brand image

>>CW – Apple can improve on there current possition as the best can get better, apple has a very strong after sale<< look at brand equity tables – look at there position and competitors and where they use to be and the direction they are going

//www.businessweek.com/magazine/toc/06_32/B399606globalbrands.htm

Corporate reputation

•The transmitted and perceived image of a corporation internally and externally
•Pertains to stakeholder management applications
•Incorporates PR, Corporate Governance and CSR
•Recognised in theory & practice: ‘Reputation Management’

:

Pulse: //www.reputationinstitute.com/

Fortune Reputation Index: //money.cnn.com/magazines/fortune/mostadmired/2009/index.html

FTSe4Good: //www.ftse.com/Indices/FTSE4Good_Index_Series/index.jsp

Dow Jones Sustainability Index: //www.sustainability-index.com/

See also : //www.iafinance.org/index.html

•Reputation is not just important for sales; it oils the wheels of dealings with government, suppliers, employees and other stakeholders The 32 companies that have qualified for Business in the Community’s (BITC) Corporate Responsibility Index throughout the seven years of its existence have outperformed their FTSE 350 peers by between 3.3 and 7.7 per cent each year. (www.allbusiness.com)
•Do not restrict judgement of companies to financial metrics
•Strategic resources & innovation
•Reputational impacts & corporate risk management
•Constituents of brand equity and CR are important too
•Evaluate intangible assets even if they are qualitative in nature
•Track intangible performance across key indices. If a smaller organisation look for key constituents where possible!
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