ORGANIZATIONAL COMPETENCIES

Organizational Competencies

Table of Contents

Introduction1

Basing Strategy on Resources and Capabilities1

Resources and Capabilities as Sources of Profit2

Organizational Capabilities2

Relationship between Structure and Strategy2

Visibility of Activities by Management Information3

From Management to Coordination: The Company Multifunctional3

Mitsubishi4

Background4

Resources and Capabilities5

Automotive Engineering5

Organizational Structure of Mitsubishi6

Evaluate Strategic Capability7

Value- Chain7

Revenue Analysis7

Revenue by segment7

Swot Analysis8

Weaknesses Strengths8

Threats Opportunities8

Strengths8

Diversified geographic base9

Strong operational base9

Weaknesses9

Declining reputation due to recalls9

Low R&D expenditure compared to its peers10

Opportunities11

New Product Launches to Enhance Product Portfolio11

Launch of I Miev in Overseas To Increase the Export Sales11

Growing Opportunities in Emerging Markets12

Threats12

Tightening Emission Standards12

Appreciating Japanese Yen against Us Dollar13

Mitsubishi Balanced Scorecard13

References14

Appendices15

Organizational Competencies

Introduction

In today's era, there is a huge responsibility on the non-profit organization to deliver those products and services which have previously been provided by the government in an environment, which is now being more difficult, and more complex. According to Porter (1980), competitive strategy is concerned with a firm's position in an industry, relative to various competitive forces. These include established competitors, buyers/customers, suppliers, the threat of substitute products, and the threat of entry to the industry by new competitors.

The goal of every company should be to position itself in its industry in such a way as to minimize the bargaining power of these five forces over the company. To position itself effectively in its industry a company must decide on the competitive strategy to follow (Porter, 1985, pp.48).

Basing Strategy on Resources and Capabilities

Identifying the capabilities of resources in the organization is the fundamental need for an organization to opt for success, and make the business profitable. Strategy of identifying the basic competencies for an organization is to make sure to know who the main target markets are in, what is the main business? These things should be accessed in order to identify the needs and wants of the customers (Johnson, 2008, pp 45-78).

Resources and Capabilities as Sources of Profit

There are two major sources of getting profits to an organization. They are industry attractiveness and competitive advantage (Lorsch, 1969, pp. 17 - 21). Out of the two, the most important is the competitive advantage, which in result gave the intense pressure to the competitors in terms of heavy competition in terms of first mover advantage, research and development and other capabilities. Establishing competitive advantage engrosses formulating and implementing a strategy that exploits the uniqueness of an organization's portfolio of resources and capabilities (Robert, 2009, pp.58).

Organizational Capabilities

An organizational capability is a “Firms capacity to deploy resources for a desired end result.” An organization's strategy and performance are the core competences, which gave an organization an edge over its competitors, and thus it contributes to give the best value to their customers that worth the price, with the intention to satisfy and retain them (Sastry, 1997, pp. 237-75).

Relationship between Structure and Strategy

The theory of the relationship between structure and strategy is the great contribution of specialists in the business organization model to estimate the market orientation of this work. This relationship is expressed, in particular, under the maxim that "the structure must fit the strategy (Chandler, 2006, pp ...