Mbv vs Rbv
| Business Strategy | Individual Assignment |
Ashutosh Amol Doijode |
Contents Introduction 3 1. Industry Analysis – Market Based View: 3 a. Porter’s Five Forces Framework 3 2. Resource Based View 5 3. Demonstration of the tools: IKEA 6 a. Analysis using Porter’s Five Forces Framework 7 b. Resource and Capabilities Analysis 7 4. Reflection 8 References 9
Introduction
The 1980’s brought about the process of strategic planning and strategy became a core subject of the business management discipline. More advanced and sophisticated techniques evolved from early methods of strategic planning and this became an integral part of the job of managers. Downsizing of staffs and upsizing of the importance of strategic planning is now a major objective of all organizations.
Stiff competition in this global environment requires a competitive advantage and it is crucial for managers to analyze the environment in a refined manner to stay on top of their game. These tools help managers identify and take decisions in a strategic manner and transform relevant data and knowledge into a form which is suitable for action and decision making. They also help to reduce risk during the process of decision making, determine proprieties and provide guidelines for evaluation of various business portfolios. The two tools analysed in this report are Industry Analysis – Market Based View and Resource Based View. 1. Industry Analysis – Market Based View:
External influences greatly impact the decisions and the performance of a firm. There are numerous external factors and the range of these factors can make it difficult for managers to analyze the market conditions. It is imperative to scan the external environment to understand the market needs and create value for customers. The external factors can be economic, technological, social, and governmental, among others.
The Market Based View tool helps managers understand its customers and how
Ashutosh Amol Doijode |
Contents Introduction 3 1. Industry Analysis – Market Based View: 3 a. Porter’s Five Forces Framework 3 2. Resource Based View 5 3. Demonstration of the tools: IKEA 6 a. Analysis using Porter’s Five Forces Framework 7 b. Resource and Capabilities Analysis 7 4. Reflection 8 References 9
Introduction
The 1980’s brought about the process of strategic planning and strategy became a core subject of the business management discipline. More advanced and sophisticated techniques evolved from early methods of strategic planning and this became an integral part of the job of managers. Downsizing of staffs and upsizing of the importance of strategic planning is now a major objective of all organizations.
Stiff competition in this global environment requires a competitive advantage and it is crucial for managers to analyze the environment in a refined manner to stay on top of their game. These tools help managers identify and take decisions in a strategic manner and transform relevant data and knowledge into a form which is suitable for action and decision making. They also help to reduce risk during the process of decision making, determine proprieties and provide guidelines for evaluation of various business portfolios. The two tools analysed in this report are Industry Analysis – Market Based View and Resource Based View. 1. Industry Analysis – Market Based View:
External influences greatly impact the decisions and the performance of a firm. There are numerous external factors and the range of these factors can make it difficult for managers to analyze the market conditions. It is imperative to scan the external environment to understand the market needs and create value for customers. The external factors can be economic, technological, social, and governmental, among others.
The Market Based View tool helps managers understand its customers and how
References: 1. Grant, R (2010). Contemporary Strategy Analysis, West Sussex: John Wiley & Sons Ltd. 2. Mazzucato, M (2002) Strategy for Business, London, SAGE Publications Ltd. 3. Haberberg, A & Rieple A (2008). Strategic Management: Theory and Application, New York, Oxford University Press Inc. 4. Aldehayyat, J & Anchor, J. (2008). Strategic planning tools and techniques in Jordan: awareness and use. Available: www.interscience.wiley.com. Last accessed 21st May, 2011. 5. Beijerstam, E (2010). A Global Working Place: A Case Study of IKEA. Available at www.lnu.se. Last accessed 20th May, 2011