5-3. What is the relevance of the resource-based view of the firm to strategic management in a global environment?
According to Wheelen, Hunger, Hoffman, and Bamford (2015), “resources are an organization’s assets and are thus the basic building blocks of the organization” (Wheelen et al., 2015). The resource-based view is one of the ways that an organization can scan its own internal environment to determine its strengths and weaknesses (Wheelen et al., 2015). This view looks at an organization’s assets, both tangible and intangible in order to make that determination. Our text outlines a strategy analysis by Grant which has five steps involved in developing a thorough resources analysis (Wheelen et al., 2015). Specifically the steps are, …show more content…
This process can be useful in identifying a company’s strengths and weaknesses because it is so thorough. The analyst can look for specific things, for example how long it took to get the product packaged. If it took longer than it takes their competitors, then that can be identified as a weakness and something to work on improving. Conversely, if they find that they are getting the product packaged in record time, they can put that on the strength list. No matter which list each step in the process goes on, there will still be opportunities for improvement or change that will make the company as a whole more efficient. An industry value-chain examines each step for the entire industry, not just one specific organization (Wheelen et al., 2015). This information can also be helpful for an organization when identifying areas that they could focus …show more content…
Employee norms and attitudes make up the culture and an organization should really work hard to foster a strong corporate culture. Wheelen, Hunger, Hoffman, and Bamford (2015) have a great example in their text Strategic Manamgnet and Business Policy about how company culture can be internal strengths and weaknesses. Their example was Circuit City, the now out of business electronic store. The competitive advantage was the expertise of staff but the CEO chose to fire 3,400 employees (Wheelen et al., 2015). The employees that were fired were the ones making the most money. He hired low wage replacements to cut costs. This spelled disaster because the organizations culture did not support this type of decision and it caused employee morale to plummet. Customer service suffered and people stopped shopping at Circuit City (Wheelen et al., 2015). This is a good example of how a decision that does not fit with the corporate culture can lead to ruin. On the other hand, if an organization has a very strong corporate culture, it can “convey a sense of identity for employees, generate employee commitment to something greater than themselves, add to the stability of the organization as a social system, and serve as a frame of reference for employees to use to make sense of organizational activities and to use as a guide for appropriate behavior” (Wheelen et al., 2015). The organization that I work for does
According to Wheelen, Hunger, Hoffman, and Bamford (2015), “resources are an organization’s assets and are thus the basic building blocks of the organization” (Wheelen et al., 2015). The resource-based view is one of the ways that an organization can scan its own internal environment to determine its strengths and weaknesses (Wheelen et al., 2015). This view looks at an organization’s assets, both tangible and intangible in order to make that determination. Our text outlines a strategy analysis by Grant which has five steps involved in developing a thorough resources analysis (Wheelen et al., 2015). Specifically the steps are, …show more content…
This process can be useful in identifying a company’s strengths and weaknesses because it is so thorough. The analyst can look for specific things, for example how long it took to get the product packaged. If it took longer than it takes their competitors, then that can be identified as a weakness and something to work on improving. Conversely, if they find that they are getting the product packaged in record time, they can put that on the strength list. No matter which list each step in the process goes on, there will still be opportunities for improvement or change that will make the company as a whole more efficient. An industry value-chain examines each step for the entire industry, not just one specific organization (Wheelen et al., 2015). This information can also be helpful for an organization when identifying areas that they could focus …show more content…
Employee norms and attitudes make up the culture and an organization should really work hard to foster a strong corporate culture. Wheelen, Hunger, Hoffman, and Bamford (2015) have a great example in their text Strategic Manamgnet and Business Policy about how company culture can be internal strengths and weaknesses. Their example was Circuit City, the now out of business electronic store. The competitive advantage was the expertise of staff but the CEO chose to fire 3,400 employees (Wheelen et al., 2015). The employees that were fired were the ones making the most money. He hired low wage replacements to cut costs. This spelled disaster because the organizations culture did not support this type of decision and it caused employee morale to plummet. Customer service suffered and people stopped shopping at Circuit City (Wheelen et al., 2015). This is a good example of how a decision that does not fit with the corporate culture can lead to ruin. On the other hand, if an organization has a very strong corporate culture, it can “convey a sense of identity for employees, generate employee commitment to something greater than themselves, add to the stability of the organization as a social system, and serve as a frame of reference for employees to use to make sense of organizational activities and to use as a guide for appropriate behavior” (Wheelen et al., 2015). The organization that I work for does