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The Resource Based View (RBV) of the firm starts from the concept that a firms performance is determined by the resources it has at its disposal.

The way these resources are used and configured enables the firm to perform and can provide a distinct competitive advantage.

Choose a business organisation that you are familiar with and attempt the following:

Question 1

Conduct a situational analysis using the Resource Based View (RBV). In your analysis, you are expected to discuss and demonstrate the following:

The organisational resources Tangibles and Intangibles

The organisational processes

The managerial and organisational capabilities

Leadership styles

The organisational core competencies

For a comprehensive analysis through the RBV Model, various specific tools are being utilised to derive outcomes pertaining to the organisational resources and processes.

You are also expected to make use of those specific tools to generate those outcomes.

(20 marks)

QUESTION 2

The Resource Based View (RBV) is a managerial framework used to determine the strategic resources/ processes a firm can exploit to achieve sustainable competitive advantage.

Based on the outcomes derived from Question 1, demonstrate how your chosen organisation is capitalising on them to derive a sustainable competitive advantage.

(10 marks)

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Organisational resources: The first step under the RBV model is to conduct an analysis of the organisational resources, which can be broadly classified into two categories - Tangible and Intangible resources. Tangible resources are the physical resources that are owned and controlled by the organisation, such as land, buildings, machinery, equipment, vehicles, etc. On the other hand, intangible resources are non-physical resources that are not owned or controlled by the organisation, but are still valuable to the organisation. These include things like reputation, brand equity, human capital, intellectual property, etc. Organisational processes: The second step under the RBV model is to analyse the organisational processes. This includes understanding how the organisation functions on a day-to-day basis, how it makes use of its resources to create value, and how it delivers its products or services to customers. Managerial and organisational capabilities: The third step under the RBV model is to analyse the managerial and organisational capabilities. This includes understanding the capabilities of the management team as well as the organisation as a whole in terms of its ability to utilise its resources effectively and create value. Leadership styles: The fourth step under the RBV model is to analyse the leadership styles. This includes understanding the leadership style of the top management team and how it contributes to the overall effectiveness of the organisation. Organisational core competencies: The fifth and final step under the RBV model is to analyse the organisational core competencies. This includes understanding the unique capabilities that the organisation has developed over time that give it a competitive advantage.

Step 2/2

Explanation:

Organisation X has a strong market position and is able to use this to charge a premium for its products and services. This allows the organisation to reinvest profits back into the business to fuel growth. Organisation X has a highly skilled and motivated workforce who are able to develop and deliver innovative products and services. This provides a sustainable competitive advantage as it is difficult for competitors to replicate. Organisation X has a strong brand which is recognised and trusted by consumers. This provides a barrier to entry for new competitors and helps to increase customer loyalty.

Final answer

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