It is often difficult to decide whether the resource based view should preside over strategic planning. (Discuss)
The resource-based view (RBV) is a model that analyses the internal environment of an organization to attain competitive advantage. Strategic planning is a process to determine the organization vision involving both internal and external environment (competition) analysis. From the above definitions, it is clear that RBV is an essential tool for the strategic planning process in conducting the internal environment analysis of an organization.
The RBV proponents state that organization tangible and intangible resources are vital to achieving higher performance. Tangible resources include the physical assets, equipment and infrastructure of an organization. Tangible resources can be bought by every organization by investing capital. Intangible resources refer to the personnel, brand name, reputation, IPR, trademarks etc. Intangible resources form the competitive advantage of a firm and cannot be bought but had to be developed over the years. RBV emphasizes on the VRIO framework of resources – Value, rarity, imitability and organization to attain competitive advantage.
The RBV supporters argue that the competitive advantage of the organizations lies inside the organizations rather than analyzing the competitive environment. This creates confusion whether the external (competition) environment analysis is essential to arrive at the competitive advantage of an organization. In reality, the external environment analysis is constantly and rapidly changing and it is essential to analyze the various opportunities existing in the market. Internal environment analysis (RBV) is used to exploit those opportunities using the key resources of the organization. It is difficult to state that RBV should preside over the strategic planning process. Hence in strategic planning, both internal (RBV) and external (Competition) analyses are equally important.
It is often difficult to decide whether the resource based view should preside over strategic planning....
Strategic planning means planning based on a company’s strategy or direction for a significant period. IT innovation means doing something never done before. Discuss what role IT innovation should play in a company’s strategic plan, and why? Should a company plan to do something it has never done before? If so, how can this be accomplished? In what ways can a plan support the eventual implementation of something that doesn’t yet exist?
In the strategic view of bargaining, it entails that bargaining should be taken as a game of sequential moves which when combined together result in an outcome. The game must however, be very clearly and precisely advised that way the rules are very well respected. Strategic bargaining involves very calculated moves which are respected amongst both parties. A perfect example of this can be any organization done between unions and employers. In this situation, all the necessary factors are present...
Discuss the resource-based view of competitive advantage. Why is it important to understand organizational differences to use this approach?
1) READ THE ARTICLE TO GIVE YOU MORE INFORMATION TO BASE YOUR COMMENTS ON: Strategic Planning (in nonprofit or for-profit organizations) Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC, experts in strategic planning. Copyright 1997-2008. Adapted from the Field Guide to Nonprofit Strategic Planning and Facilitation. Simply put, strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The...
respond: Strategic planning should be formal or semi-informal, depending on the size and nature of the organization. The larger and more complex the business is should correlate with the formality of the strategic plan. I’m a veteran and have experienced how the military has a very formal strategic plan and account and plan for every conceivable situation. I also own and run a small business in the financial services industry and have a semi-formal strategic plan. The extent of my...
The Resource-Based View in Sports This activity is important because as a manager, you should understand the factors that affect a firm's profitability and long-term survival. According to the resource-based view, a company can gain competitive advantage from resources that are inimitable and rare. The goal of this exercise is to demonstrate your understanding of the resource-based view by answering questions after reading a case study. Read the case about the resource-based view in sports and answer the questions that...
Yes, I think the resource-based view of organizational deficiencies can be a helpful strategy to overcome the barriers to success and better performance of the organization. When an organization adopts a resource-based view, it willing to self-evaluate the resources it has at its disposal. From the available resources, an expected performance report can be produced which would allow the company to know how much productivity can be achieved from the current set of resources being used at their optimum best....
Strategic view of bargaining focuses on the timing and commitment of the bargaining rules of the game. It relies heavily on the rules of the game being followed and in order for this to be the case the rules must be clearly defined and communicated. Bargaining with or on behalf of a trade union would utilize this type of bargaining best as they are usually driven based on the timing of some event or demands being made. If the rules of the...
Who should in your view decide about the acceptability of risks? Engineers? Politicians? Company managers? The public? Argue your answer and discuss what your view would imply for the responsibility of engineers with respect to safety.
Forrester, NMSU, Exante Financial Services, and Others: Getting Real about Strategic Planning It must be nice to be the CIO of a FedEx, or a GE, or a Credit Suisse, where IT and the business are so tightly aligned you can barely tell the two apart. In such companies, corporate leaders understand that IT is a strategic asset and support it as such. These are places where the CIO is encouraged to spend the majority of his time on the...