Resource-Based Analysis of Mtn and the Implications for Future Strategy

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Resource-based analysis of MTN and the implications for future strategy
The purpose of the analysis is to investigate the internal capabilities and primary resources of MTN and what implication these have on the strategy of the organisation and the competitive advantage might be levered from them. The resource analysis is based on the financial yearend reporting of December 2009 (MTN)
Resource audit
In conducting the resource audit, the classification of the different type of resources derived by Grant will be used, see Figure 1 Link between resources, capabilities and competitive advantage (Grant, 2005). These resources, combination leads to the operational capabilities of the organisation.

Classify and assessing of
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The results of the resource analyses show that the organisation has exposed itself to risk due to massive investment and expenditure into new markets. This is especially dangerous in a time of economic recession and scarcity of credit, no matter how lucrative the market prospects are. Due to this overwhelming factor, it is suggested that a consolidated market penetration strategy is approached until cash flows are adequate. There after new market expansion can be considered.

Critical evaluate the strategic choices of MTN
The purpose of the report is to evaluate the strategic choices MTN has made and to determine the appropriateness there of.
The current strategic direction of the organisation is stated as:
1. Consolidation and diversification.
2. Leveraging its footprint and intellectual capacity.
3. Convergence and operational evolution.
Whether these strategic objectives are the most appropriate or not, some method should have been applied to formulate them. A standard method can be applied to logically asses what modifications to the current strategy was necessary, see Figure 5 Basic strategic planning process

Corporate purpose
The first real determination of whether the organisational strategy is appropriate is to determine whether it

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