Week 9

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

The resource- based view of the firm and strategy combines the internal analysis of phenomena within companies with the external analysis of the industry and the competitive advantage. Any firm which can attain competitive advantage can gain economic value. It is undertaken to find out the strengths and weaknesses of an organization. It analyses current vision, mission, strategic objectives and strategies of an organization to gain competitive advantage within the industry (businessdictionary.com, 2013).

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 Strategic Analysis identifies and evaluates the factor that is influencing micro environmental changes. Organization has to closely analyze and monitor all the elements of micro environment in order to stay competitive. It is undertaken to find out the strengths and weaknesses of an organization. It analyses current vision, mission, strategic objectives and strategies of an organization to gain competitive advantage within the industry (mystrategicplan.com, 2013).

There are different models to analyze internal strategy.

• Value Chain Analysis

Value chain analysis has been widely used as a means of describing the activities within and around an organization, and relating them to assessment of the competitive strength of an organization. One of the key aspects of value chain analysis is the recognition that organizations are much than a random collection of machines, money and people.  These resources are of no value unless deployed into activities and organized into routines and systems which ensure that products or services are produced which are valued by the final consumer/user. In other words, it is these competences to perform particular activities and the ability to manage linkages between activities which are the source of competitive advantage for organization.

• The McKinsey 7S Model

The McKinsey 7S Model consists of seven independent factors that are used to measure the quality of the performance of the firm. It involves 3 hard elements and 4 soft elements. Hard element consists of strategy, structure, systems. Soft element consists of Shared Values, skills, style and staff. Hard elements are easier to define where they can be easily influenced by the management. Soft elements are hard to define and are influenced by the culture. This model helps to analyze the current situation, a proposed future situation and to find the gaps between them.

• VRIN tool

VRIN Analysis enables managers to recognize their core competencies and key sources of competitive advantage. VRIN tells what they should do, given the relative strengths and weaknesses of their resources and capabilities. Then managers’ job is to bundle resources and capabilities to achieve competitive advantage. Competitive advantage is derived from unique resources and capabilities. Firms distinguish themselves from competitors by developing Core Competencies which are the resources of a firm that allow it to differentiate its products or services from competitors. Core competencies are the basis for strategy and competitive advantage and are most effective when they are based on intangible resources and organizational capabilities (Boulton. W, 2013).

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?

We have started working on our group video work, we are now at initial stage, and we have planned to do a video work on Wal-Mart Company. As we are collecting the information about the company from secondary sources, there is no problem so far. Overall it is going well.

References:

business dictionary., 2013. business dictionary. [Online]
Available at: http://www.businessdictionary.com/definition/resource-based-view.html
[Accessed 2013].

Definition of Internal Analysis | MyStrategicPlan Resources. 2013. Definition of Intermal Analysis|MyStrategicPlanResources. [ONLINE] Available at: http://mystrategicplan.com/resources/external-analysis/. [Accessed 30 March 2013].

Boulton.W., 2013. auburn university [Online]
Available at: http://www.auburn.edu/~boultwr/html/strategic_analysis_model.htm
[Accessed 2013].