Read the following scenario and answer the questions.

OrgFields $($Pty$)$ Ltd $($OF$)$ was established in $2006$ and is one of the leading agricultural companies specialising in organic crop production. It implemented sustainable farming practices in $2006$ when it started. OF is a global brand and uses innovative farming techniques. Located on a $5000-$hectare farm in South Africa, its motto is optimising crop yields whilst minimising environmental impact.

OF invests in research and development with a robust supply chain and a skilled work force. It also invested heavily in technology, cutting$-$edge farming tools, and automated irrigation systems. This assisted OG in staying ahead of competitors and adjusting quickly to changes in market demands.

Challenges and opportunities experienced by OF:

Globally there is an increase in the demand for organic food products. Consumers are more aware of environmental sustainability and the impact of food on their health. There are strict regulations that OF needs to comply with locally and internationally.

There are established companies in organic agricultural production.

New entrants are also a factor because businesses are seeing this opportunity.

The South African government supports sustainable and organic farming with favourable. policies that OF benefits from.

South Africa has water scarcity.

Socio$-$economic inequalities.

There is also the impact of climate change in South Africa.

OF has strategic capabilities like a strong brand reputation, a good relationship with the community, and its unique organic farming techniques. Their dynamic capabilities allow for continuous innovation and response to environmental changes. The company needs to protect its unique crop strains and propriety technology from its competitors.

The value chain includes research and development, production, marketing, and sales at a competitive price. The integration of its value chain with its suppliers and customers enhances efficiency and profitability.

Required

$4\mathrm{.}1$ Explain the resource$-$based view $($RBV$).$ Outline how OF's distinctive resources and capabilities contribute to its competitive advantage.

$4\mathrm{.}2$ Critically analyse the strategic capabilities of OF in the context of the South African environment and produce strategic initiatives of how OF can address challenges like water scarcity and socio$-$economic inequalities.