...3103 GROUP C TOPIC: LEVERAGING RESOURCES AND CAPABILITIES: CASES OF ASIA MULTINATIONAL FIRMS Lecturer in charge: Prof. Dr. Mohamad Hanapi bin Mohamad Prepared by Resources and capabilities and organization structure Resource is an input to the production’s process. It may be tangible, as in the assets of the company that can be seen or quantified. Human resources, funds and physical plant and equipment are examples of these tangible assets. Resources may also be intangible, such as reputation or a stock of patents and copyrights Capabilities on the other hand refer to a company’s ability to make use of its resources in a highly productive manner. Both resources and capabilities are sources of competitive advantage and can be imitated. An organizational capability is a company's ability to manage resources, such as employees, effectively to gain an advantage over competitors. The company's organizational capabilities must focus on the business's ability to meet customer demand. In addition, organizational capabilities must be unique to the organization to prevent replication by competitors. Organizational capabilities are anything a company does well that improves business and differentiates the business in the market. Developing and cultivating organizational capabilities can help small business owners gain an advantage in a competitive environment by focusing on the areas where they excel. Resources, Competences and Capabilities By evaluating core competences...
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...MBA 591 – Summer 2011 Faculty of Business Administration Bilkent University July 5, 2011 Resources and Capabilities of Wal-Mart Wal-Mart had enough financial resources to make capital investments to improve its operations and labor productivity. Most important investments were technological investments such as the UPC (Uniform Product Code) infrastructure, the computerized system within stores and the satellite network that enabled almost real-time communication among the stores, the distribution centers and vendors. These technological resources can also be classified as equipment related resources. As a result of these resources, Wal-Mart had strengthened capabilities in financial management, purchasing, administration, inventory management, labor productivity and store management. The computerized system within the stores enabled Wal-Mart to wire the merchandise requests of the stores directly to the central computer at the related headquarter, which functioned as a distribution center. In case the stock levels were lower than the critical levels, the merchandise could be reordered directly from the related vendors thanks to this computerized system. This system not only enabled to track inventory, sales and accounting functions but also strengthened the bargaining power in purchasing of Wal-Mart. Each vendor could supply...
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...Prepared by AE-2011 Resources and Capabilities 1.1 Financial Resources & Capabilities During the period from 2007 to 2009 total sales went up 8.13% which is a strong performance. Most contribution is driving from domestic sales (i.e. German operations). 2007 Turnover (€m) Total turnover growth (%) Grocery Sales Density (euro/sqm/wk) Number of Stores Sales Area (‘000 sqm) 41,818 +3.9 2008 45,183 +8.0 2009 45,221 +0.1 121 121 116 8,515 6,645 9,065 7,153 9,430 7,499 ALDI financial resources seem to be strong since that the group is operating without loans from banks and long-term liabilities over years. Increased sales in 2010 lead to the conclusion that ALDI’s financial position will continue to be strong. The ALDI-brothers are the richest Germans in 2008 (each owning a fortune of @ 17 billion € {Welt Online, 2008}). 1.2 Human Resources & Capabilities ALDI operates a highly developed system of decentralization allowing flat hierarchies and fast promotion prospects. A high level of authority for managers is encouraging to e more entrepreneurs increases motivation. A minimum number of staff is working at high speed in stores. Store managers have to be hands. The few number of staff (about 4 persons per store), allows above-average salaries (regional managers: monthly salary of 6000 € and company car) {Meffert. C. 2002}. Managers are only appointed out of own ranks, making sure the expertise they’ve won over years stays in-house and company’s pbjectives are...
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...REFERENCES Keegan W & Green M, 6th ed (2012), Global Marketing, Prentice Hall Foster, G., 2005. Managing Expropriation Risks in the Energy Sector: Steps for Foreign Investors to Minimise their Exposure and Maximise Prospects for Recovery when Takings Occur. Journal of Energy \& Natural Resources Law, 23(1) e.V., T., 2014. How corrupt is your country?. [online] Cpi.transparency.org. Available at: <http://cpi.transparency.org/cpi2013/results/> [Accessed 18 Apr. 2014] Hollensen, S (2012), Essentials of Global Marketing, 2nd ed, Pearson Kotler, P & Keller, K (2012), Marketing Management, 14th Ed, Prentice Hall. Chee H & Harris R (1998), Global Marketing Strategy, Pitman Golea, V., 2009. THE IMPACT OF THE GOVERNMENTAL POLICY ON THE TRANSNATIONAL COMPANIES'ACTIVITIES. Review of Management \& Economic Engineering, 8(1) pkward.com - global customer experience - Ideas & Observations - Wal-Mart: Why Did It Fail in Germany?. 2014. [online] Pkward.com. Available at: <http://pkward.com/ideas-observations/2012/10/30/wal-mart-why-did-it-fail-in-germany.html> [Accessed 18 Apr. 2014] Jobber, D (2009), Principles and Practice of Marketing, 6th Ed, Maidenhead, McGraw Hill Pranee, C. 2010. Marketing Ethical Implication & Social Responsibility. International Journal of Organizational Innovation, 2 (3) Torelli, C. J., \"Ozsomer, A., Carvalho, S. W., Keh, H. T. and Maehle, N. 2012. Brand concepts as representations of human values:...
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...Identify the Resources, Capabilities and Distinctive Competencies of Starbucks. The resource and capabilities of Starbucks can be identify and separate to tangible and intangible resource. 2 kinds of tangible resource can be analysis as below : A ) Manpower : Base on the rapidly expanded since 1990s until now, Starbucks was accumulated thousands of well-trained employee. From level of direct counter service staff, baristas until managerial level, they are a very strong resource team owned by Starbucks. Especially their existing CEO Howard Schultz, he is one of the most successful CEO in the worldwide, was create a new coffeehouse format and implement for whole Starbucks retail store, and finally got a astounding performance and rapidly expanding for Starbucks retail store in United States and worldwide. B) Retail Store : Since 1990s , Starbucks was rapidly expanding and built up a enormous amount of retail store in the worldwide. In the same time, base on their sophisticated location strategy, many premium locations was occupied by their retail stores. The location strategic for retail store become their another main asset and resource to continue expanding, or at least maintain a leading position in coffeehouse market. For intangible resource and capabilities portion, the continuous growth for brand equity is Starbucks’s one of the most valuable resource and capabilities while facing many imitators appear in the coffeehouse market. The unique Starbucks Experience concept...
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...The resource and capabilities of Starbucks can be identify and separate to tangible and intangible resource. 2 kinds of tangible resource can be analysis as below : A ) Manpower : Base on the rapidly expanded since 1990s until now, Starbucks was accumulated thousands of well-trained employee. From level of direct counter service staff, baristas until managerial level, they are a very strong resource team owned by Starbucks. Especially their existing CEO Howard Schultz, he is one of the most successful CEO in the worldwide, was create a new coffeehouse format and implement for whole Starbucks retail store, and finally got a astounding performance and rapidly expanding for Starbucks retail store in United States and worldwide. B) Retail Store : Since 1990s , Starbucks was rapidly expanding and built up a enormous amount of retail store in the worldwide. In the same time, base on their sophisticated location strategy, many premium locations was occupied by their retail stores. The location strategic for retail store become their another main asset and resource to continue expanding, or at least maintain a leading position in coffeehouse market. For intangible resource and capabilities portion, the continuous growth for brand equity is Starbucks’s one of the most valuable resource and capabilities while facing many imitators appear in the coffeehouse market. The unique Starbucks Experience concept, with an innovative product display and cozy atmosphere, free Wi-fi service...
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...Mohamed Kaba 15/01/2013 THE IMPACT OF CRISIS IN EUROPE ON BUSINESS ORGANISATIONS A crisis could be defined as anything that knows a decline during a long or short period. In here we are meaning a decrease in the economic and financial activity of a country. An economic crisis could be first caused by subprime banking. For example, in authors view, the financial crisis (2008) was primarily driven by two factors. First, investor‘s and financial institutions generally did not expect that real estate prices would fall dramatically. This dramatic fall in real estate prices led to large defaults on sub-prime mortgages and large falls in value in securitizations of subprime mortgages. The second factor is that many financial institutions were operating with extremely high levels of leverage and held large investments in subprime securitization, so that significant unexpected losses on these investments could quickly lead market participants to question their solvency, which led to cash hoarding by these institutions, to fire sales of assets to bring about decrease in leverage and to a contraction in their willingness to lend which has affected the economic growth then. Political reasons are also factor of crisis. For example the rejection...
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...This research essay is to discuss the theoretical concepts of Resources and Capabilities of Coca-Cola Company. The purpose of this essay is to analyse how Coca-Cola generates sustainable competitive advantage by drawing on the resources and capabilities literature. The discussion of the theoretical concepts will be focusing on resource-based view, tangible and intangible resources, and strategic capabilities. Overview of Coca-Cola Company The Coca-Cola Company, founded in year 1886, is the world’s largest beverage company. It is a manufacturer and distributor of nonalcoholic beverage brands, concentrates and syrups. The company own or license and market more than 500 nonalcoholic beverage brands and also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Its own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. The finished beverage products are now sold in more than 200 countries. The company headquarter is in Atlanta, Georgia and have 146,200 workforce globally as of December 2011. The company’s revenue was $46,542 million in the financial year ended December 2011. (Coca-Cola Company, 2011) Theoretical concepts The theoretical concept for Resources and Capabilities is based on the resource-based view. Resource-based view is a way of viewing a company, primarily application of the bundle...
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...an organization’s marketing information skills and resources contribute to its distinctive capabilities Information gives the company ways to identify opportunities, develop strengths and spot weaknesses so they can be worked on. “Capabilities concerned with the processes of marketing strategy development and execution… are valuable non-substitutable sources of advantage that can lead to superior performance, which may be difficult for competitors to replicate” (Luxton, Reid, & Mavondo, 2015). Through marketing information skills and resources, the company can identify the market and provide to the community. “The independent performance impacts of marketing resources and marketing capabilities… suggests that a firm may obtain performance advantage from the complementarity of both marketing resources and marketing capabilities” (Ngo & O’Cass, 2012). For example, SWOT analysis information can be used by a company to identify and use its strengths, address their weaknesses and take advantage of opportunities presented. A company can use their distinctive capabilities when it analysis the information it has found and identifies the market it can successfully enter. Without information the company is blind and it will fail to accurately define its distinctive capabilities and gain a portion of the market. Market sensing capabilities and knowledge generation may directly create competitive advantage. Useful and effective resources, such as information, will allow the company to accomplish...
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...NETWORK CAPABILITY – EMERGING AS PART OF AN INDUSTRIAL FIRMS COMPETENCE CONFIGURATION Jukka Vesalainen, University of Vaasa, Department of Management jukka.vesalainen@uva.fi Henri Hakala, University of Vaasa, Department of Management henri.hakala@uva.fi Abstract: The network capability refers to the firm’s ability to build, handle and exploit relationships. These capabilities are interwoven in the complex configuration with other capabilities and competencies of the firm and are, in practice, very difficult to separate from them. Rather than assuming that firms inherently possess network capability, our aim is to discover if this actually naturally occurs in the discourse of the top management teams. In order to understand how managers perceive, process and interpret network capability, the management teams of six industrial subcontractors were guided through a five-step process of introducing, identifying, critical screening, challenging and verifying the capabilities of the firm. The paper introduces strategic capability architecture and investigates how network capability emerges within the configuration of other capabilities in these firms. We found that in customer oriented capability sets, network capabilities are central to the formation this kind of capabilities. In other types of capability sets, networking capabilities play an important role as assets in the formation of the capability sets. Furthermore, we identified that the networking capabilities act in unison with...
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...Resources and Capabilities of McDonald Introduction As one of the leading companies in the world and invading every country, there is no doubt that McDonald is the leader in fast food industry. This fact has been proven for so many years and this will not happen if the company did not apply any strategies with their resources and calculating their capabilities. The strategy may come in planning in the business setting. The process of developing and maintaining the goals and capabilities is reflected to its changing marketing opportunities. The corporate strategy lays in their institutional mission, supporting goals and objectives, an appropriate implementation (2007). Resources and Capabilities of McDonald For the company, the strategy is concerned with matching a firm’s resources and capabilities to the opportunities that arise in the external environment. The resources and capabilities of a company are considered as a strategy. The increasing emphasis on the role of resources and capabilities as the basis for strategy may come in to two factors. First, the industry where the firm belongs became unstable and so the internal resources and capabilities of the firm are given more focus in formulating strategies. And second, the combination of the resources and capabilities of the firm became the superior competitive advantage and profitability (2007). The connection between the resource and capabilities of a firm in the area of business makes a competitive advantage. It is...
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...advantage from the Resources and Internal activities of the Organisation! ! Introduction! Organisations have been subject to a vast majority of strategic frameworks over the past few decades, most notably so the research-based view (RBV), which aims to understand organisational activities and their competitive strategies (Kraaijenbrink et al 2010). The focus of this report is to state how organisations achieve competitive advantage from the use of their resources and internal activities. The report will give a brief summary of the RBV paradigm, followed, the main base of the report will focus on how firms use their recourses, capabilities and competencies to achieve competitive advantage. Concluding comments will then be made further discussing the concept of RBV.! ! The RBV summary! The Ricardian1 perspective of the heterogeneity and immobility of competitive capability producing and rent earning resources flows through the core of the RBV (Barney, 1991; Kraaijenbrink et al 2010). Organisations are seen to strive for above normal profit generation, in unmediated competition with other firms within the same market. It further views organisations as profit maximising entities, guided by rational managers operating in such markets that, to a point are predictable and moving towards equilibrium (Leiblein, 2003; Kraaijenbrink et al 2010). From this the RBV takes an inside-out approach to dealing with the competitive environment, focusing on the firms resources and internal capabilities...
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...firm’s capabilities • what are the firm’s strengths? • what are the firm’s weaknesses? • how do these strengths & weaknesses compare to competitors? Why Does Internal Analysis Matter? Internal analysis helps a firm: • determine if its resources and capabilities are likely sources of competitive advantage • establish strategies that will exploit any sources of competitive advantage Traditional research on firm strengths and weaknesses • Theories of distinctive competence – General managers as distinctive competencies – Institutional leadership as a distinctive competence • Ricardian economics • Penrose’s theory of firm growth Research on the skills of general managers, institutional leaders, economic rents and firm growth have been brought together to develop a rigorous model to analyze a firm’s strengths and weaknesses: the resource-based view of the firm The Theory Behind Internal Analysis The Resource-Based View • developed to answer the question: Why do some firms achieve better economic performance than others? • used to help firms achieve competitive advantage and superior economic performance • assumes that a firm’s resources and capabilities are the primary drivers of competitive advantage and economic performance The Resource-Based View Resources and Capabilities Resources: • tangible and intangible assets of a firm » tangible: factories, products ; intangible: reputation • used to conceive of and implement strategies Capabilities: • a subset of resources that...
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...marketplace they operate in. VRIO falls into the internal analysis step of these procedures, but is used as a framework in evaluating just about all resources and capabilities of a firm, regardless of what phase of the strategic model it falls under. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability). * The Question of Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" * The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?" * The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?" * The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?" Question of Value The basic question asked by the V in the VRIO framework for internal analysis is “Is this resource or capability valuable to the focal firm?” In this case, the definition of value is whether or not the resource or capability works to exploit an opportunity...
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...123 5 Analyzing Resources and Capabilities Analysts have tended to define assets too narrowly, identifying only those that can be measured, such as plant and equipment. Yet the intangible assets, such as a particular technology, accumulated consumer information, brand name, reputation, and corporate culture, are invaluable to the firm’s competitive power. In fact, these invisible assets are often the only real source of competitive edge that can be sustained over time. —HIROYUKI ITAMI, MOBILIZING INVISIBLE ASSETS You’ve gotta do what you do well. —LUCINO NOTO, FORMER VICE CHAIRMAN, EXXON MOBIL OUTLINE l Introduction and Objectives l The Role of Resources and l Organizational Capabilities Classifying Capabilities The Architecture of Capability l Appraising Resources and Capabilities Establishing Competitive Advantage Sustaining Competitive Advantage Appropriating the Returns to Competitive Advantage l Putting Resource and Capability Capabilities in Strategy Formulation Basing Strategy on Resources and Capabilities Resources and Capabilities as Sources of Profit l The Resources of the Firm Tangible Resources Intangible Resources Human Resources Analysis to Work: A Practical Guide Step 1 Identify the Key Resources and Capabilities 123 CSAC05 1/13/07 9:21 Page 124 124 PART II THE TOOLS OF STRATEGY ANALYSIS Step 2 Appraising Resources and Capabilities Step 3 Developing Strategy Implications l Developing Resources and Capabilities The Relationship...
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