Week 9

1. In your own words and using referenced quotes describe what is meant in strategy by the ‘Resource-Based View’?

Resource-based view is a way of viewing the firm and in turn of approaching strategy. This theory believes that a firm is a bundle of resources. All these resources and their way of combination makes each firms different from another. The internal environment is the starting point of the analysis, because it considers taking an inside-out approach while analyzing the firm.

Resources of a firm includes all the assets, information and knowledge, firm attributes, organizational processes, and capabilities. All the inputs that helps the firm to operate its activities can be considered as resources.
 A resource should have the following important features to be strategically important:

i)  Valuable - a resource will become a source of competitive advantage only if it is able to bring value to the firm.
ii) Rare - a resource should also be rare and provide unique strategy to be able to give competitive advantages to firms.
iii) Inimitable - resources should be inimitable for competing firms to obtain so that the firm can sustain competitive advantage.
iv)  Non-substitutable - a resource should be non-substitutable because if it is substitutable and can be replaced by another alternative & equivalent resource then it will be very difficult for the firms to sustain competitive advantage.

"The resource-based view (RBV) as a basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable interchangable and intangible tangible resources at the firm's disposal" - (Mwailu & Mercer, 1983 p142, Wernerfelt, 1984, p172; Rumelt, 1984, p557-558; Penrose, 1959[1]). 

2. How might you undertake ‘Internal Strategic Analysis’? What models would you apply and why? Where would you go to find the information you need? 

Internal analysis is done by first evaluating the organization's capabilities and resources. I would undertake 'Internal strategic analysis' by first collecting all the necessary data and information regarding the company's resources ( as people, intellectual property & assets), the capabilities (functions) of the company and, knowing what is the best our company does? Only after getting all of these data and information, I would undertake 'Internal strategic analysis'.

There are many models available to do the 'Internal strategic analysis' and, we can apply them according to our requirement and convenience. We can apply VRIN model, Financial analysis, McKinsey Seven S analysis, Value chain analysis, and resource & competence analysis because we can get a detailed information about the organization from all of these models.

              VRIN gives us all the required information regarding increasing / improving the competitive advantages by taking advantages of opportunities  and also it helps in threat reduction because it helps us to develop inimitable and unique characteristics.

·                     All the finance-related activities like evaluating budgets, projects and businesses for determining their suitability for investment, these all activities are referred as Financial analysis. It helps a company to find out whether an entity is profitable enough to be invested in, or is it liquid, solvent or stable.

·                     Meanwhile, Mckinsey seven S model provides us with the detailed information regarding the structure, skills, system, staff, strategy, style and shared values. It helps in improving the performance of a company. It also helps us to evaluate the potential effects of future changes to the company and within it. And, it helps us in determining the best way to implement strategies within the company.

·                     Value chain analysis provides us the information regarding various value-adding activities that are superior to that of their competitors which can be used to gain competitive advantage over the competitors.

·                     Resource and competence analysis, as the name suggests, it gives us the detailed information about the resources that the company possesses and also shows us the best way they should be implemented, so that competitive advantage can be gained over the competitors.

All the information can be found from the related department / individuals or we can use the experts that are within the organization to get the required informations. For example: to get any information regarding the staffs, we should contact the Human Resource Management  (HRM) department / personnel.

  
3. Talk about your group video work. How is it going so far? Do you have a plan? What are you most worried about at the moment? What is going well?! 

Actually, it is going well. Our group has decided to do a comparative analysis between two of the leading global names in electronics, Apple & Samsung. We are 5 members in our group, and each individual is assigned to do a particular task, this will help to do the work more effectively and efficiently too. We are using many analytical tools like SWOT analysis, PESTLE analysis, Financial analysis and various other tools to evaluate the competitive advantages for each of them.

The only thing that we are most worried about is the video shoot and its deadline for submission and upload. We are assigned to do a lot of analysis using various tools,  which needs a lot research and consumes a lot of time too. So, the challenge to do a good research and complete it on time is the main problem that we all are worried about at the moment.

Since, both of these companies are very big and global companies, the only thing that is going well is the availability of data and informations related to these companies in internet and journals. This is helping us to minimize the time-duration required for the research.

REFERENCE

About Strategy, [Online] http://www.mindtools.com/pages/article/newSTR_91.htm Accessed on 2013/01/04

About Financial analysis, [Online] http://www.investopedia.com/terms/f/financial-analysis.asp#axzz2Hqwf9n7L Accessed on 2013/01/04