Competitive Advantage What are bases for Competitive Advantage

Competitive Advantage

What are bases for Competitive Advantage? • Porter’s Generic Strategies – Cost Leadership – Differentiation

What are bases for Competitive Advantage? • Porter’s Generic Strategies – Cost Leadership – Differentiation • Resource Based View – Must have superior resources/capabilities

How do you sustain a competitive advantage? • Barney: Your resources must be: – Valuable – Rare – Imperfectly imitatable – Non-substitutable

FOE and Competitive Advantage • Key question: How do key stakeholders help create competitive advantage? • Society (Chapter 8) • Partners (Chapter 7) • Investors (Chapter 6) • Customers (Chapter 5) • Employees (Chapter 4)

So, what are the major themes regarding Employees (Chap 4)?

“Just as companies now track brand equity and customer equity, they should also track employee equity” (FOE, p. 91)

ACE Model of People Equity • Alignment – Of employees (and units) with organization • Capabilities – Mobilizing talent, information and resources to meet customer needs • Engagement – Passion for organizations as “great places to work, purchase from, and even invest in” Schiemann, Reinventing Talent Management, in press

Effects of People Equity Schiemann, Reinventing Talent Management, in press

Effects of People Equity Schiemann, Reinventing Talent Management, in press

HR “Heroes”

“Everywhere I’ve worked where I had to hire people, the rule of thumb among managers was to involve HR as little as possible in the process. ” - Stewart, “Taking on the Last Bureaucracy” (1996)

Concerns About HR • “They don’t know what they’re doing” – “Paper-pushers” – Credibility • “They’re out of the loop” – “ They don’t understand my needs” • “They get in the way” – “Tell me what I CAN’T do”