Part I: Please answer in 1 page. Use APA style for referencing.
“Describe how strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time.” Include specific examples in your discussion; be sure to reference your sources.
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Part II: Please give your opinion or feedback on the following 3. 2 paragraphs for each
1). Strategic resources are defined by Anon (2015) as assets or resources which are strategic to the extent that they are valuable, rare, difficult to imitate, and non-substitutable. Resources which do not have all four of these qualities are unlikely to lend themselves to long term advantage; however, the whole of the business is greater than the sum of its parts.
As exemplified in the text, Southwest Airlines corporate culture of encouraging all employees to do their best and succeed for the customer is complemented by other approaches which combined cannot be copied by competitors. A resource is valuable to the extent that it helps a. firm create strategies that capitalize on opportunities and ward off threats.
Anon (2015) also states “The inability of competitors to imitate a strategic resource is a key to leveraging the resource to achieve long-term competitive advantages. Resources that involve intellectual property reduce or even eliminate this risk”. Examples of intellectual property include: inventions, artistic products, symbols, patents, trademarks, copyrights, and trade secrets.
Capabilities arise over time as a firm builds on its strategic resources. Capabilities are needed to bundle, manage, and otherwise exploit resources in a manner that provides value to customers and creates competitive advantage.
A useful example of how strategic resources assist firms in developing capabilities for long term performance is Apple Inc. Apple’s strategic resources include but are not limited to: an expertly skilled workforce, a powerful brand and image, customer database, unique design capability, and innovation capability. Each of these characteristics alone could be copied by competitors; however, Apple’s unique business model incorporating all of these factors gives the firm differentiated capabilities for long term competitive advantage.
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2). On page 123 of Mastering Strategic Management, strategic resources can be items as simple as cash or modes of transportation. These resources are broken into the following categories; valuable, rare, difficult to imitate and no substitutable. Strategic resources can create a competitive advantage for a company in the market. Having the access to resources that are vital to the type of business can grant the company a big advantage in delivering their product or service to the market.
To develop superior performance over the long term, employees or human capital, could be viewed as a valuable resource. In an article by Victoria Duff, the author states that human capital is important due the fact that a skilled, loyal workforce will make the company more efficient and stable. If a company is constantly training workers, they lose that advantage of efficiency. This will also affect production.
Regarding rare resources, Mastering Strategic Management points to Southwest Airlines as an example with employee relations. The text points to how the management – employee is better than any other in the industry. This leads to the creation of a valuable resource, human capital, which was cited in the previous section.
Apple can be used as an example of no substitutable. They have a proprietary operating system that cannot be used on non-Apple products. Other companies use Google or Android systems. However, if the consumer only wants the Apple system, they must purchase the Apple product. This means there is no substitute for the Apple product.
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3). Tabasco Sauce is in just about everyone’s refrigerator. As a brand it is well recognized. In America Tabasco Sauce has been a premium product. The Tabasco Peppers may be viewed as a strategic resource; moreover, over time the Mcllhenny company has driven their product to be superior within their market.
The Mcllhenny family did not invent the Tabasco Pepper, nor were they able to corner the market. One could argue it is not a true strategic resource. But in Mastering Strategic Management ( 2016), “A strategic resource is an asset that is valuable, rare, difficult to imitate, and nonsubstitutable ( cited in Barney, 1991; Chi, 1994). It’s what the Mcllhenny made with the pepper that made their product unique.
Stradley (2001) states, Tabasco Sauce was invented in the 1860’s on Avery Island. The sauce to some extent was regionally available for the first few decades. By the early part of the 1900’s Tabasco became a house hold product. Arguably there are other pepper sauces on the market. It was the Tabasco brand that reached national recognition first. The Mcllhenny family tapped into an undeveloped market and reached iconic status. To further support Tabasco Sauce’s superior performance; According to Mastering Strategic Management ( 2016), “A resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats (p.111).” It appears Tabasco Sauce’s performance might have been solidified for decades.
Over time Tabasco sauce was the only national pepper sauce. Using a strategic resource as it’s foundation, the Mcllhenny developed their sauce into an American classic for one hundred and sixty years. Although over the past twenty-five years there has been a plethora of peppers sauces that have come to market. So far Tabasco still maintains its front runner status. With many other substitutes and competitors trying to chip away at Tabasco Sauce’s dominance.
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Part III: – internal resources
- Describe the value chain for Samsung
- Using the power point found in Module 2, create the vrio Table found here
| Resources Does the Organization have | Value Y or N | Rarity Y or N | Unable to Imitate Y or N | Organized Properly Y or N | Type of Competitive Advantage |
| 1. A Strong Financial foundation | |||||
| 2. Valuable Facilities | |||||
| 3. Unique and Innovative Products | |||||
| 4. Effective Management | |||||
| 5. Experienced and Capable Employees | |||||
| 6. A Strong Relationships with its Customers | |||||
| 7. A Strong Relationships with its Suppliers | |||||
| 8. A Strong Relationships with its Channels | |||||
| 9. A Strong Brand Reputation | |||||
| 10. Efficient Operations | |||||
| 11. Social Responsibility |
- Create a stakeholder analysis
| STAKEHOLDERS | KEY INTERESTS | IMPORTANCE TO STRATEGY (HIGH OR LOW) | INFLUENCE ON STRATEGY (HIGH OR LOW) | PARTICIPATION -1 Keep Informed -2 Keep Satisfied -3 Manage Closely -4 two way communication |
- Describe the Impact of Globalization on each stakeholder relationship
| STAKEHOLDERS | Impact of Globalization on each relationship |
