Module 04: Resources and Capabilities

 

This week, our discussion thread is centered on the resource-based view (RBV) of the firm and clarifying capabilities. Select a Saudi Arabian company with which you are familiar and reinforce the approach to resource and capability analysis by appraising the strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare, Imitable, Organization) Framework (See Strategy Capsule 5.6).

1. Identify three key resources and/or capabilities of the company.

   Vet each of the three against the VRIO (Valuable, Rare, Imitable, Organization) Framework.
   Explain each resource/capability’s score given the VRIO rubric. For instance, does the resource/capability impart sufficient value, is the resource/capability rare, etc.
   What is the likely competitive outcome for each resource/capability? That is, given its VRIO score is it likely to impart a sustainable competitive advantage, a temporary competitive advantage, competitive parity, or competitive disadvantage?
   Make recommendations to the firm’s management as to which of the resources/capabilities you have identified should be invested (built up), divested and/or which additional resources should be acquired to supplement/leverage existing resources/capabilities.

2. In your response to student posts, focus on the viability of the suggestions made by other students: To which degree do these suggestions make sense regarding the possibility of gaining a sustainable competitive advantage?

Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references. Use Saudi Electronic University academic writing standards and APA style guidelines.

You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.