Q1: Write (from 200 to 250 words) with references:
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).
- Identify three key resources and/or capabilities of the company.
a. Vet each of the three against the VRIO (Valuable, Rare, Imitable, Organization) Framework.
b. 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.
c. 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?
d. 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. - 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.
Q2: Discuss the Idea not the writing skills below from 2 to 4 lines is good (this answer from students (Fahad ALI) to the Q1):
Herfy Food organization, based in Saudi Arabia, utilizes the available resources to attain a competitive advantage. The organization ensures effective utilization of the following vital resources, reputation, technology, and qualified employees to achieve competitive advantage in the fast-food production sector. Hence, it is an example of a Saudi-based organization that utilizes a resource-based view approach to attain a competitive advantage. A resource-based view is an approach that encourages organizations to gain a competitive advantage by using available resources. Conducting a VRIO analysis on Herfy organization is critical in determining the organization's resources and capabilities.
The organization's top resource and capability is in its reputation. Herfy has developed a strong reputation in the Saudi market for its great provision of quality, fast food products, and services similar to its competitors at relatively low prices. This uses the price differentiation strategy, which helps the organization achieve a significant amount of profits in the Saudi market. This resource is valuable as it can enhance the value of food products and services the company offers. Hence, it enhances the organization's competitive advantage.
Investments in technology are yet another vital resource that enhances the organization's competitive advantage. This has helped the organization offer quick quality services and products by utilizing the latest fast-food technology in the market. Only a few organizations in the region have the capability of incorporating technology into their operations. Thus, technology is a rare resource in the Saudi Arabian fast food industry.
Herfy organization also utilizes its highly qualified employees to enhance its competitive strategy in the region. Eligible employees enable the organization to offer high-quality products and services at quick speeds. This improves customer loyalty and experience, delivering a temporary competitive advantage as other significant organizations can afford to hire qualified staff.
VRIO framework
Resource/ Capability Valuable Rare Inimitability Organized
Reputation yes yes Yes Yes
Technology yes yes Yes Yes
Qualified employees yes yes No Yes
Herfy the organization management board should increase its investment in technology and hire more qualified workers to enhance their quality. Additionally, this will boost the speed of production and delivery of their products and services to consumers.
References
Álvarez-Melgarejo, M., & Torres-Barreto, M. (2018). Can resources act ascapabilities foundations? A bibliometric analysis. UIS Ingenierías, 17(2), 185–200.
Q3: Discuss the Idea not the writing skills below from 2 to 4 lines is good (this answer from students (Mohammed Aloraini) to the Q1):
Almarai is a united group cutting across its foods and beverages goods from dairy farms to marketing outlets. The other products are branded as SMOOTHY, ALYOUM, ALMARAT, and ZADY (Fabbe, Al-Amin, Cekin, & Kindred, 2018). Almarai is a limited corporation, a dairy business, supplying healthy food and drinks in Saudi Arabia. It delivers daily liquids, comprising flavored milk, desserts, yogurts, lactose-free milk, food brands, butter, cheese slices, cheese spreads, ghee, fruit juice, mozzarella, bakery products comprising biscuits, readymade pastries, and poultry products.
The VRIO framework is a strategic assessment tool developed to support organizations unearth and protect the resources and abilities that provide them a permanent competitive edge. However, the framework should be put into practice after the conception of a mission statement before the strategic planning process. It is apparent Almarai is Saudi Arabia’s leading dairy manufacturer, supplier, and vender, with an elaborate portfolio of trademarked dairy products, bakery products, juices, and baby formula and a sales company all over the Gulf region, Egypt, and Jordan and its achievement possibly emanate from a continued competitive edge in human capital management. If we were to narrow down Almarai’s VRIO framework from the human resource standpoint, it might appear something like this:
Value: The exploitation of human capital management data to recruit and sustain creative, productive staff. These staff progressively design some of the most common customer products and services around the globe. Almarai hired more than 42,000 individuals across its processes, from its substantial dairy farms to its manufacturing plants to its total sales and supply operation that hit more than 100,000 shops (Sadi, & Henderson, 2007). Nevertheless, its varied portfolio, the center of Almarai's company, was sales registered chilled/fresh products in Saudi Arabia. It was supplied through the traditional marketing system that constituted many small zone outlets known as bakalas.
Rarity: No other corporations are applying data-based worker management so broadly. The accomplishment of a corporation is not only its advanced farmhouses, its well-developed supply system all over the Gulf States and Central Manufacturing industries but is as well the result of sustained focus on consumer satisfaction, to supply high standard goods daily to their customers and to meet the demands of their shareholders. From that time, the company has become one of the leading food corporations in the Gulf and starting from the food distribution chain from dairy farms and arable farms through to marketing in shops in six Gulf nations.
Imitability: Almarai’s exploitation of data-based human capital management is both expensive and complex to copy or imitate, at least for the coming future. Companies have to design the software and commit more resources to train their HR employees on the novel innovation and approach. Additionally, has a unique price control. This part is very problematic, given that the business does not transfer increased production costs over to the consumers. There is a high probability of losing clients if this is not controlled. Consumers will divert to those products in the market which have fair and manageable prices.
Organization: Almarai is systematized to outline value from this competence. The marketing department can amass and store the data. At the same time, Huma Resource and group leaders are equipped to apply the data to recruit, market, control, and enhance staff productivity. Moreover, there is a strong consumer association. This is a situation in which the consumer can get services or products without difficulty. The product or service is accessible to the consumer at the appropriate time and place without relenting on the quality. Relationships may be ended if consumers change from the manufacturing area. This makes the business minimize its production. Another possible way of affecting the association is where the consumer does not need the services or products any longer.
Having a VRIO framework in operation enabled Almarai to take a distinct strategy to human capital management and make policies using vast amounts of objective information. For instance, Almarai’s people operations group strived to establish which qualities make an excellent manager. The data used to show this comprised performance assessments, surveys, appropriate manager nominations. By defining what characteristics as an excellent manager, Almarai reinforces its internal group and the basis of its continued competitive edge.
References
Fabbe, K., Al-Amin, S., Cekin, E., & Kindred, N. (2018). Almarai Company: Milk and Modernization in the Kingdom of Saudi Arabia.
Sadi, M. A., & Henderson, J. C. (2007). In search of greener pastures: Al-Marai and dairy food business in Saudi Arabia. British Food Journal, 109(8), 637-647.
Singh, A., & Hagahmoodi, S. O. (2016). Performance Measurement of Almarai Products and Customer Satisfaction. International Journal of Management Science, 4(1), 1-12.
Grant, R. M. (2019). Contemporary strategy analysis (10th ed.) Hoboken, NJ: John Wiley & Sons. ISBN: 9781119495727
Sample Solution