Rizki Oeshya Lubis (29113343)

YP-50B
Internal Organization
To analyze firms internal organization should use a global mind-set. Global mind-set is the
ability to analyze, understand and manage an internal organization in ways that are not dependent
on the assumptions of a single country, culture, or context.
Creating Value is a way to showed customers what we really want to be seen. Value is measured
by a products performance characteristics and its attributes for which customers are willing to
pay. People wants to pay more if they think it worth it. Have more value than other product (such
as: health, fast delivery and delicious).
The challenge of analyzing the internal organization

To make a good decision manager sometimes got influence from uncertainty that means
changing of technology, changing of customers taste, political trends and many more.
Complexity sometimes the product is high demand but also have the risk or damage to earth.
Intraorganizational Conflicts surface when the one who making decisions and the one those
affected doesnt have the same point of view. Beside 3 influences that stated above, there also
have to be Judgment to keep the decision from biases.

1. Resources are bundled to create organizational capabilities

a. Tangible are assets that can be observed and quantified

b. Intangible include assets that are rooted deeply in the firms history, accumulate
over time, and relatively difficult for competitors to analyze and imitate

2. Capabilities the source of a firms core competencies

Exists when resources have been purposely integrated to achieve a specific task or set of
tasks. For example distribution (effective use of logistics management techniques) is
capability of Wal-Mart.
3. Core Competencies basis of competitive advantages
Capabilities that serve as a source of competitive advantage for a firm over its rivals. It
reflect company personality. How much is core competencies the best for company to
have? It depends, but for McKinsey & Co. recommend for 3 or 4 core competencies.

How to build core competencies? The picture below will explain it.

First 4 columns is the indicator to build the core competencies (Valuables, Rare, Costly to imitate
and No substitutable). The last 2 columns were consequences and performance implications. So,
to build our core competencies we can used the picture above for guidance.
Value Chain Analysis allows the firm to understand the parts of its operations that create value
and those that do not. It have 2 activities, Primary and Support. Primary activities are involved
with a products physical creation, its sale and distribution to buyers, and its service after the
sale. Support activities provide the assistance necessary for the primary activities to take place.
What company do if their core competencies doesnt have source for activity? Outsourcing one
of solution. Outsourcing include the third party or external party to do activity. It is better from
company rather than hire an expert and a team as their employee.
Example of port in Singapore. Singapore begin with two natural resources: location and large,
protected, deep-water Port. These two resources are rare and valuable. With these two resources,
government need only to build good infrastructure like roads, housing, sanitation, water and
electrical systems. With all the advantage they have, Singapore also faced disadvantages. Main
disadvantage is the size of port. With growth of ship number that come to port, they have to think
about new strategy. PSA came with a solution to implement IT (Information Technology).

With new strategy, there will also response from competitor. Malaysia, can take Maersk Sealand
and Evergreen Marine form PSA to their port. They give two a say in managing the port along
with dedicated berths. Shorter turn-around time and efficiency also the main attraction of port in
Malaysia.