Relative Core Competency and Resource Analysis
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Relative Core Competency and Resource Analysis
Resources and capabilities are the building blocks upon which an organization creates and executes value-adding strategies so that the organization can earn reasonable returns and achieve strategic competitiveness (management study guide, 2008). Core competencies help an organization distinguish its products from competitors. They also allow organizations to offer lower prices, thereby helping organizations achieve competitive advantage (management study guide, 2008). In addition, core competencies help create customer value and aid in creating and developing new goods and services. By deciding the future of organizations, giving way to innovations, helping to develop new technology and ensuring the delivery of quality products and services to the consumer, core competencies are vital to a successful organization (management study guide, 2008). As an organization grows, develops and adjusts to its new environment, its core competencies also adjust and change. Thus, core competencies are flexible and developing with time, which allows organizations to maximize its resources and relate them to new opportunities thrown by the environment.
According to Harvard Business School Press (2006), the core competencies of an organization can be evaluated according to inimitability, appropriability, durability, competitive superiority and sustainability. The core competencies for Hair Elegance Salon and Day Spa include developing and attracting human talent, customer satisfaction, service quality, new product time to market, cost controls and management skills. In an effort to ensure that Hair Elegance Salon and Day Spa is above competition in all core competency areas, researched will be conducted along with constant reevaluation of practices, benchmarking the competition and continuously creating new strategies to stay ahead of competition.
Ratings: 5 = very strong, 1 = very weak
Metrics Tactical Plan
Measurement matrix
Measurement Criteria
An essential part of a successful organization is the recognition of its risk and measuring those risks accurately. Risk measurement in new ventures involves those elements that are critical to the achievement of the goals and objectives of an organization (Craddock, 2007). One of the six keys to building a consistent high organic growth company is through measuring everything (Hess, 2007). Hess (2007) found that companies who grow organically have the correct performance metrics in place that are fair while being objective and critical to mission of the long-term
In accordance with the measurement metrics noted by Hess (2007), financial, operational and behavioral core competencies were measured for risk. Hair Elegance Salon and Day Spa believes that in order to be successful every aspect of the business must be measured (Hess, 2007). As a result, risk analysis will include the areas mentioned in the measurement matrix. Measurement of these areas is highly important in the salon and day spa industry because they help determine the success of the business and whether it becomes and remains a market leader. By ranking the measurement metrics from poor, average, good and excellent it is easier to determine the areas that need the most attention.
General Approach to Leadership and Culture
Today, an organizations success hinges on effective leadership. Hess (2007) found that the organizations that demonstrated organic growth had key leadership elements in common.
Hess (2007) also noted that effective leaders of organizations with organic growth foster an environment where humility is viewed as a strength and a strong will to succeed is required. However, effective leadership does not only involve the personal strengths that the leader possesses. Effective leadership also involves those, which the leader leads. This involves the value chain of an organization and begins with people within it (Hess 2007). In addition, Collins (2005) asserted that level 5 leaders blend humility and professional