Week 9

1. In your own words and using referenced quotes describe what is meant in strategy be resource-based view

"  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 interchangeable and intangible tangible resources at the firm's disposal  To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile "

(Mwailu & Mercer, 1983 p142, Wernerfelt, 1984, p172; Rumelt, 1984, p557-558; Penrose, 1959[1]

In other words RBV is the competitive advantage gained by a organization due to its unique and distinctive capabilities.  The capabilities lies in our resources (what we have) and in our competences (how we use it ) . 

Resources analysis 

Source :- fserver Islington College

Competence analysis 

source :-fserver Islington college

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

In order to undertake internal strategic analysis of an organization we need to consider few criteria which are as follows 

• objectives and purpose of an organization
• resources and the capabilities of the organization to formulate strategics
• the organizational structure of the organization
• the working norms and culture of the organization 
• and the overall performance of the organization e.g. its size and financial performance 

There are several tools to conduct internal strategic analysis some of which are

• Resources and competences analysis
• value chain analysis
• Mckinsey seven s analysis
• financial analysis
• VRIN

 VIRN is one of the models that we can apply .By analyzing of resources and competences by using VRIN model in order to create a competitive  advantage for an organization .

V (Value)	A resource should make the firm to employ a value-creating strategy, by either being better than its competitors or  by reducing its own weaknesses
R (Rare)	In order it to be of value, a resource must be rare. It should not be possessed by the competitors even if they do it should be very few in number.
I (Inimitability)	The valuable resources controlled by firm it could be a source of a competitive advantage . This advantage could only  be sustainable if others are not able to duplicate this.
N (Non-substitution)	Even if a resource is rare, the organization should ensure there is no threat of substitution

V (Value)

A resource should make the firm to employ a value-creating strategy, by either being better than its competitors or  by reducing its own weaknesses

R (Rare)

 In order it to be of value, a resource must be rare. It should not be possessed by the competitors even if they do it should be very few in number.

I (Inimitability)

The valuable resources controlled by firm it could be a source of a competitive advantage . This advantage could only  be sustainable if others are not able to duplicate this.

N (Non-substitution) 

Even if a resource is rare, the organization should ensure there is no threat of substitution

In order to get the overall information to formulate internal strategy, an organization needs to look in into its 

resources that is currently available. Whatever available resources must also be used at its optimum level hence the organization should also measure its capabilities on using the available resources by this we can find the necessary information to formulate internal strategic analysis  

Q3) Talk about your group video work. How is it going far? Do you have a plan? What are you most worried about at the moment? What is going well?

So far we have selected two companies that we are going to compare.  We also have divided the work among the group members . We are planning to record the video as soon as possible , we are worried as we are already behind schedule however now almost everything is in right track

Refernces

Managment Study Guide. 2012. Resource Based View - The VRIN Characteristics. [ONLINE] Available at: http://managementstudyguide.com/resource-based-view.htm. [Accessed 12 January 13].

SlideShare . 2012. Internal Analysis of Strategic Management . [ONLINE] Available at: http://www.slideshare.net/guestd507e7/internal-analysys-of-strategic-management-presentation#btnNext. [Accessed 12 January 13].