Resources from the Environment

Acquisition and organisation of resources can be critical success factor in an organization. While on the other hand, change requires a firm to gain expand and utilise resource such as human, financial, knowledge as a crucial asset. Resource based approach supports this view and as Tywoniak (2007) claimed by that resource based view is the most dominant theory in history of management. This is achieved by targeting state of sustained competitive advantage by controlling resources and capabilities. This view emphasis on the need for a ‘fit’ among capabilities and external market, and since each firm has unique capabilities and resources, this result in achieving strategic

* Resources and capabilities serve as a source of competitive advantage for a firm over its rival.

The resource-based view was developed to help emphasize internal capabilities as a means of creating competitive advantage (Henry, n.d.) In this view, the organization is comprised of a series of resources that are used by management. These resources are the source of new products and the internal improvements that help companies to better compete in the marketplace. There are two different types of resources tangible and intangible. The former category consists of physical assets, and is characterized as physical resources, human resources and capital resources. So physical resources are the buildings, machinery, materials and productive capacity. At Coca-Cola, the company's physical resources

Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources.

However, it is important to remember not all of these resources may be relevant. The RBV of a firm is only concerned in resources that can be a source of sustained competitive advantage for the firm.

The Earth has an ability to produce natural resources, provide land to build on, and absorb waste. This is known as the bio capacity of the Earth, and it can only take so much to keep the planet healthy and clean. It takes about a year and a half to generate the resources that the human population only uses in a year. Therefore, if it continues at this rate, according to the World Wildlife Fund, “by the year 2050, the human population is anticipated to use an equivalency of two Earths worth of renewable sources in only one year.” The planet Earth can only produce so much in one year, and doubling the amount is far from possible. There are many threats on the planet Earth to prevent it from providing what is demanded, in which people do not realize are a part of a day-to-day routine. Just as the Earth is evolving, human life and wildlife is expanding its population as well and consequently, all residents of the planet should be aware of saving the Earth from demolishing everyone and everything in it. Cutting down forests for the sake of human utilization may be beneficial, however it will decrease the benefits of Earth as a whole. The act of deforestation may be considered a gateway to the extinction of all living things on the Earth.

He suggested that sustained competitive advantage derives from the resources and capabilities a firm controls that are valuable, rare, imperfectly imitable, and not substitutable. He further added that the resources and capabilities can be viewed in form of tangible and intangible assets. There are four different categories of resources financial, physical, human, and organization.

Technological resources are in the form of patents, copyrights or trade secrets (Grant, 2016). As well as intellectual capital, which is a value driver of a business (Chahal and Bakshi, 2016).

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

Because the past decades have witnessed the rise of ultra-competitive markets, companies have strived to find efficient ways to differentiate themselves from their competitors. Consequently, a growing interest was granted as to how firm resources should be managed in order to achieve temporary competitive advantage and even sustained competitive advantage. According to an article of software business :’The Resource-Based View (RBV) holds that firms can earn sustainable above average returns only if they have superior resources and those resources are protected by some form of isolating mechanism

In the article, the authors introduce a new approach to strategic management called the "Resource Based View of the Firm" – RVB. RVB attempts to develop a business model framework that helps describe how a company 's resources drive its performance in a dynamic competitive environment. This approach integrates the internal analysis of the company (i.e. core competencies) with the external analysis of the industry and the competitive environment (i.e. Porter 's Five Force Model). The article argues that both analyses are required to accurately assess a company 's competitive position. While Porter 's Five Forces Model helped strategic managers choose the right industries and, within them, the most attractive competitive positions, it

1) Four test that should be used to measure the competitive power of a company’s resource strengths are:

The resource-based view (RBV) emphasizes the firm’s resources as the fundamental determinants of competitive advantage and performance. It adopts two assumptions in analyzing sources of competitive advantage (

Teece, Pisano, and Shuen (1997) argued that dynamic capabilities permit firms to reconfigure, create, and integrate internal and external resources capabilities to maintain a strategic performance. The successful of strategic performance is by adequately use the company’s recourses to challenge the rapid changing of business competitive environments. A successful firm adopts dynamic capabilities to enable renew of the operational resources to gain the position of competitive advantages. The dynamic capabilities enhance the business of competitive advantages by enabling the creation and modification of firm’s recourse. By the dynamic capabilities, the firm analysis the external opportunities toward achieving the competitive position. Dynamic capabilities utilized organizational resources to enhance growth and adoption of environmental change (Teece et al., 1997). Some company use dynamic capabilities by modifying the current recourse to match the needs of the business competition. As stated by Lin & Wu (2014) the primary goal of the resource-based approach is on is on leveraging current organizational capabilities for gaining and sustaining competitive advantage.

Resources are the source of the firm’s capabilities. Resources are bundled to create organisational capabilities. Some of a firm’s resources are tangible and intangible. Tangible resources are assets that can be seen and quantified. Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Intangible resources are relatively difficult for competitors to analyse and imitate. The four types of tangible resources are financial, organisational, physical and technological. And the three types of intangible resources are human, innovation and reputational (Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E., 2011, pp. 75-78).