Resource-based view takes the approach that a firm¡¯s resources are more important than industry structure in getting and keeping competitive advantage. It sees firms as very different collections of assets and capabilities. The internal resources and capabilities are the source of a firm¡¯s profitability, not the external environment. Firms each have unique resources and capabilities. Resources are not necessarily mobile across firms.2 Although the resource-based view focuses on analyzing internal organizational factors, it doesn¡¯t ignore important external factors.
A competitive strategy is the research so as to find a suitable position in the market. The selection of the competitive strategy by a firm is widely dependent on two factors: Firstly the attractiveness of the industry for securing long term profits and secondly on the determinants of relative position within the industry. But it is noticed that none of the factors is most suitable in determining the competitive strategies for any company. A company operating in a very eye-catching industry may also sometimes fail to earn profits because of a poor competitive position but at the same time a better competitive position will help a firm to earn profits even in a not so attractive industry. The choice of competitive strategy becomes more interesting and challenging because both industry attractiveness and competitive position of a firm can change.
Contrary to best fit perspective, resource based view (RBV) pays less attention on HR practices and policies, but values human capital as a vital resources of a company. Internal resources play a key role in productivity and performance of the company. To compete a leadership in industry, company has to manage valuable and rare resources that company owns well. In order to create and sustain competitive advantages, RBV prime action are resources improvement and competencies development. Because theses organization competencies come from internal, they are exclusive and immobile which opponents can hardly copy.
Bid Data and Organizational Value Today’s businesses are challenged by competition and the ability to maintained sustainability. As a result, leaders are must find new innovative ways to leverage performance and increase organization values. Business analytics in the form or big data is one of the approach leaders are using to leverage performance and value. The study by LaValle, Lesser, Shockley, Hopkins, & Kruschwitz, (2011) aim to take an in depth look at the relationship between information in the form of big data and organizational value. The Theory of the Research The theory of the research is that organization’s competitiveness and value is link to information data analytics.
The explanation for this failure is attributed to the fact that these firms were as well-run as a firm could expect to be, but there is something in the way that the decisions within the firm are made that lead to their failure. The Innovator’s Dilemma states that because firms listened to their customers, invested aggressively in technologies that would provide their customers with more and better products of the type they wanted, and because they studied market trends very intently and allocated capital toward innovations that promised the best returns, they lost their positions as leaders within their industry. The book declares that there are times at which its better to not listen to customers, to invest in developing lower-performance products that promise ... ... middle of paper ... ...asis of competition. The third strategic option for dealing with these dynamics is to use marketing initiatives to steepen the slopes of the market trajectories so that customers demand the performance improvements that the technologists provide.” (154). The ideas and theories presented in this book relate to this course because they can directly affect the way a company develops its supply chain.
This will allow the company to see which departments are the most beneficial and require the most funding. One of the difficulties in making this model is deciding the importance of departments that do not directly produce or distribute products or services for the company. One example is the Technology Department. Although this department does not appear to directly make money for the company they contribute a considerable amount to those departments that do. Each company must therefore decide where the Technology Department lies in the value chain model.
“Intense competitive pressures have forced companies to re-examine their approach to managing suppliers and their supply base. An increasing focus on core competencies, and the concomitant increase in outsourcing of components and services, has also placed greater emphasis on supplier management. In addition, much of the traditional in-house development activities have been pushed onto suppliers. Purchasing is thus increasingly regarded as a strategic weapon, centered on its ability to create collaborative relationships for firm advantage” (Handfield, et al, 2005, p.1). Although they work hand in hand, there is a distinct difference between supply chain strategy and the overall business strategy.
Social Scientist Schumpeter and Porter attempted to move the comprehension of the environment from a static model to one that examines the interdependence of forces as being dynamic. This dynamism, they postulated is often driven by innovation. To this end, the competitiveness has often given rise to the classification of the environment as ever changing, as time elapses. In such an environment, businesses can’t compete solely on the basis of product alone anymore, there must be some defining criteria that distinguish the businesses at varying levels. As such, this environment is the basis for the knowledge worker.
It mainly focuses on the creating a good value proposition. • This strategic model helps a company to investigate the cost structure of the company. Furthermore, managers also find the opportunities for specialization of their products. Porter basically focuses on analyzing the activities that creates a competitive advantage and then the necessary steps to implement those. • This model demonstrates that the company need to analyze only direct competitors, not all companies competing in the sector.
I Abstract This paper discusses the how the finance function will drive business excellence in a global environment with emerging challenges in the areas of regulation technology, risk, globalization, talent capability. The CFO's will have to operate in a global economy which is significantly volatile giving the future CFO's and the finance function new challenges and opportunities. The CFO's will need to work in collaboration with the business process owners and help in create sustainable growth. Business excellence is about achieving excellence in what an organization does including strategy, leadership, customer focus, information management ,people and process which will help in achieving superior business results. The key to maintain