The Resource Based View Of A Company Essay

This paper will discuss some of the primary components of a strategic management process, while also explain why the process is crucial for a company success. This paper in addition will evaluate one organization that uses the strategic management process to accomplish their short-term, long-term goals, and objectives of the firm’s (University of Phoenix. (2015).

Today, Strategic Management is something really important for companies in order to remain competitive. It is also important to know the definition of this term in order to well understand it. According to the Contemporary Strategic Management 2nd edition book (Grant, Robert, Bella Butler, Stuart Orr and Peter Murray – 2013), “Strategic Management is the process of thinking strategically, setting objectives for the organisation, planning and implementing the necessary changes, and measuring the outcomes.” By knowing it we can see that strategy management is very important for a company. Indeed, strategy is essential for the surviving of the company but also essential to know how the company allocates its resources and how it will achieve its

the internal analysis of the firm and the external analysis of the industry and competitive environment

Strategic Evaluation is the efficiency and effectiveness of the comprehensive plans achieving the desired results.

Strategic planning is designed to leverage the strengths of a firm while minimizing the effects of its weaknesses.  It is difficult to know the potential advantage a firm may have unless external analysis is done well.  For example, a company may have a talented marketing department or an efficient production system.  However, the organization cannot determine whether these internal characteristics are sources of competitive advantage until it knows something about how well the competitors stack up in these areas.

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

Strategic Management is the theory and practice of making decisions that shape the future of the firm. This course looks at the content and process of strategic decision making from the perspective of managers who are responsible for an entire business unit. These may be individuals who are acting in the capacity of a Chief Executive of a company, divisional General Managers, or departmental heads. It is also the perspective most

The First aspect to consider the Objectives and Goal-Setting that help to clarify the vision of the business. Important facts to consider in this step is to define the short and long objectives, set the actions that help to accomplish the objectives and last distribute the task among employees. In addition is necessary for this step to write the mission statement and communicate the goal with shareholders and staff. The second aspects were Analysis which consists in gathering the necessary information and data that will allow to accomplish the vision and help the business to grow. In addition, at this stage is important to identify the strength and weakness of the company. The third aspects were Strategy Formulation which is the process where information is a review, and business resources are identified. The Fourth aspect is Strategy Implementation, this stage is critical to the business because it is the action stage so if the strategy implemented did not work new structure installed at the beginning of this stage will overcome the issue. Employees within the organization also must be aware of their responsibilities, duties, and goals. Evaluation and Control are the last aspects to take into account and consist of review the internal and external issues and set corrective issues. A good evaluation begins by defining the parameters to be measured, monitoring internal and external take corrective actions that will move the company forward. Indeed, “the success of monitoring depends on the initial quantitative objective used in the plan’s development” (Berkowitz 2017, page

By analysing those elements stated above, it is likely that the higher authority could evaluate the organisations in terms of its strategic performance level which would definitely lead to a better overall understanding on consequently may assist in decision making. The analyses of those elements are as following.

Even though companies have almost similar external conditions, some companies enjoy huge success for years, while other fail miserably, that depends on the sound of strategic management which is a high level plan to achieve one or more goals under uncertain condition. Mintzberg and Waters (1985) stated it is necessary to analyse the strategic formulation and management for the following tasks:

Verizon is motivated and determined to find the most innovative and effective way for its customers to connect and communicate. Its strategy for continued growth and profitability is to deliver great wireless and wireline services.

Doucet, G., 2010. TOOLS FOR STRATEGIC EVALUATION: TOOLS AND METHODS THE COHERENCY ARCHITECT SHOULD APPLY. [Online] Available at: http://coherencyarchitect.com/2010/03/15/tools-for-strategic-evaluation-tools-and-methods-the-coherency-architect-should-app

A company’s resources include two types: tangible and intangible. The former is asset that can be observed and counted, such as, office furniture, production equipment, computer, and warehouse, etc. Unlikely, the intangible resources are assets that are rooted deeply in the company’s history, accumulate over time, and are relatively difficult for competitors to learn and copy, such as brand, intellectual property and reputation, etc.

Diageo is interested in growing their people and business as well as improving financial returns and shareholder value to avoid situations of competitive parity. These views emphasize asset valuation using accounting and economic measures over effectiveness measures and lack a holistic approach to understanding value as an internally driven strategic effort (Barney 2001; Hawawini et al 2000). The RBV performed here on Diageo showcases how Diageo creates value and profits from their internal resources and focuses

Every organization uses multiple resources for the achievement of their goals. Organization seeks most of the resources from the environment like people, money, technology, equipment etc. Barney (1991) says that firm resources include all assets, capabilities, organizational processes, firm's attributes, information and knowledge controlled by a firm that enables the firm to conceive and implement strategies to improve its efficiency and effectiveness. Resource can be defined by approach that is more technical. Popular approach of resource-based review is followed to identify the resources of the firm. Many theorists are of the view that resources are something, which gives the firm competitive advantage over the other firm which can enhance the performance of the firm. According to this approach, resource normally fulfills the following criteria.