Question

Description Leveraging resources and capabilities are critical in International Business. Using your SWOT and VRIO as a point of reference, explain how companies are utilizing their resources effectively? nt centable a minimum of 100 words explainirg TT

Answer 1

The iconcept iof ileveraging ihas isomething ito ido iwith itaking iadvantage iof iall iresources ithat iare iavailable ito iachieve inew ior iadditional iobjectives. iThat iis, ihow ido iyou iuse iexisting icapacities iwithin ian iorganization ito iachieve inew ioutput iand ieventually ioutcomes? iIn ia iway, ileveraging ican ibe ilooked iat ione iof ithe istrategies ithat ican ibe iemployed ito iimprove iefficiency. iAgain, ithis iis ijust ione iof ithe imany iways iof ilooking iat ileveraging.

The iVIRO iframework iprovides ia ibasis ito ibegin imapping iout iand iunderstanding iwhat iresources imake iyou isuccessful iand iprovide icompetitive iadvantage, iwhich ican ibe iused ias ia iguide iin imaking idecisions iand isetting ipriorities iacross ithe icompany.

The iVRIO iframework iis ia itool ito ihelp iyou iunderstand ithe ielements iof iyour ibusiness ithat igive iyou ia ilong-term icompetitive iadvantage. iIt imight ibe iresources ior icapabilities, ipartnerships ior iproducts, iwhatever igives ior iis igoing ito igive iyou ian iadvantage ican ibe iframed iwithin ithe iVRIO iframework.

Valuable

A iresource iis ideemed ias iValuable iif iit iadds ivalue ito ithe icompany i– ieither iallowing iit ito itake iadvantage iof iopportunities ior imitigate ithe ithreats. iWithin ia iSWOT iAnalysis, iValuable iresources imay ibe imentioned iunder iStrengths iand irelate ito ithe iOpportunities iand iThreats. iIt icould ibe ia iparticular ifeature ithat idifferentiates iyou, ia idepartment ithat iperforms iwell.

Rarity

A iresource iis ijudged ion ithe irarity, iwhich iis ioften ithe ieasiest iand ileast isubjective ipart iof iVRIO. iIt ican icome idown ito isimply iif ithis iresource iis ieasily iacquired iby icompetitors, iby iyourself, ior iif iit’s ieasy ito ireplace icompletely.

Inimitable

If ia iresource ican ibe iimitated icomes idown ito ithe ihow ieasily ian iorganisation ican isubstitute ior icopy iout ia iresource. iFor iexample, iyou imight ibe iable ito icopy ia iparticular ifeature iin ia iproduct, ior ia iparticular imarketing iapproach, ibut iit’d ibe idifficult ito icopy ia ibrand ior ihistoric idatabase iof icustomer itrends.

Organized

This iarea iis iaround iorganizing ithe icompany ito imaximize ithe ipotential ifrom ithe iresource iis iit igenerating ithe imost iit ipossibly ican ido ifor ithe ibusiness?

Each iresource iof ithe ibusiness ican ibe imapped ion ithose ifour icategories iby ianswering iYes ior iNo. iDepending ion ithese ianswers, ithe iresult iis ia ijudgment iof ieach iresource ias:

1. Competitive iDisadvantage

2. Competitive iParity

3. Temporary iCompetitive iAdvantage

4. Unused iCompetitive iAdvantage

5. Sustainable iCompetitive iAdvantage

To ijudge iif iyou isee ia iResource ias iValuable iin ithe iVRIO iframework iyou ishould iask ithe ifollowing iquestions:

a. Does ithe iresource iadd ivalue ifor iyour icustomers?

b. Does ithe iresource iresult iin iyou iwinning isales?

c. Does iit ihelp itake iopportunities ior iremove ithreats ifrom iyour iSWOT?

There iare ia ilot iof iadvantages ito ithe iVRIO iframework iincluding:

1. It’s isimple iand ieffective ias ia iresource ireview

2. When idone iwell iit ican ielevate ia icompanies icompetitive ipositioning

3. It’s icomprehensive iwhile inot ibeing icomplicated

4. It’s ivery ifocused ion iinternal ianalysis

SWOT i(strengths, iweaknesses, iopportunities, iand ithreats) ianalysis iis ia iframework iused ito ievaluate ia icompany's icompetitive iposition iand ito idevelop istrategic iplanning. iSWOT ianalysis iassesses iinternal iand iexternal ifactors, ias iwell ias icurrent iand ifuture ipotential.

A iSWOT ianalysis iis idesigned ito ifacilitate ia irealistic, ifact-based, idata-driven ilook iat ithe istrengths iand iweaknesses iof ian iorganization, iits iinitiatives, ior ian iindustry. iThe iorganization ineeds ito ikeep ithe ianalysis iaccurate iby iavoiding ipre-conceived ibeliefs ior igray iareas iand iinstead ifocusing ion ireal-life icontexts. iCompanies ishould iuse iit ias ia iguide iand inot inecessarily ias ia iprescription.

1. SWOT ianalysis iis ia istrategic iplanning itechnique ithat iprovides iassessment itools.

2. Identifying icore istrengths, iweaknesses, iopportunities, iand ithreats ilead ito ifact-based ianalysis, ifresh iperspectives iand inew iideas.

3. SWOT ianalysis iworks ibest iwhen idiverse igroups ior ivoices iwithin ian iorganization iare ifree ito iprovide irealistic idata ipoints irather ithan iprescribed imessaging.

Strengths idescribe iwhat ian iorganization iexcels iat iand iwhat iseparates iit ifrom ithe icompetition: ia istrong ibrand, iloyal icustomer ibase, ia istrong ibalance isheet, iunique itechnology, iand iso ion. iFor iexample, ia ihedge ifund imay ihave ideveloped ia iproprietary itrading istrategy ithat ireturns imarket-beating iresults. iIt imust ithen idecide ihow ito iuse ithose iresults ito iattract inew iinvestors.

Weaknesses istop ian iorganization ifrom iperforming iat iits ioptimum ilevel. iThey iare iareas iwhere ithe ibusiness ineeds ito iimprove ito iremain icompetitive: ia iweak ibrand, ihigher-than-average iturnover, ihigh ilevels iof idebt, ian iinadequate isupply ichain, ior ilack iof icapital.

Opportunities irefer ito ifavorable iexternal ifactors ithat icould igive ian iorganization ia icompetitive iadvantage. iFor iexample, iif ia icountry icuts itariffs, ia icar imanufacturer ican iexport iits icars iinto ia inew imarket, iincreasing isales iand imarket ishare.

Threats irefer ito ifactors ithat ihave ithe ipotential ito iharm ian iorganization. iFor iexample, ia idrought iis ia ithreat ito ia iwheat-producing icompany, ias iit imay idestroy ior ireduce ithe icrop iyield. iOther icommon ithreats iinclude ithings ilike irising icosts ifor imaterials, iincreasing icompetition, itight ilabor isupply iand iso ion.

i i i i i i i i i i i i i i i i i i i i i iA iSWOT ianalysis iis ia igreat iway ito iguide ibusiness-strategy imeetings. iIt's ipowerful ito ihave ieveryone iin ithe iroom ito idiscuss ithe icompany's icore istrengths iand iweaknesses iand ithen imove ifrom ithere ito idefine ithe iopportunities iand ithreats, iand ifinally ito ibrainstorming iideas. iOftentimes, ithe iSWOT ianalysis iyou ienvision ibefore ithe isession ichanges ithroughout ito ireflect ifactors iyou iwere iunaware iof iand iwould inever ihave icaptured iif inot ifor ithe igroup’s iinput.

A icompany ican iuse ia iSWOT ifor ioverall ibusiness istrategy isessions ior ifor ia ispecific isegment isuch ias imarketing, iproduction ior isales. iThis iway, iyou ican isee ihow ithe ioverall istrategy ideveloped ifrom ithe iSWOT ianalysis iwill ifilter idown ito ithe isegments ibelow ibefore icommitting ito iit. iYou ican ialso iwork iin ireverse iwith ia isegment-specific iSWOT ianalysis ithat ifeeds iinto ian ioverall iSWOT ianalysis.