DELA CRUZ, REYMEL JOHN P.

BSA V-A

CHAPTER IV. CREATING VALUE AT THE BUSINESS LEVEL

Identify a small enterprise in your neighborhood. Ask the owners to study its premises and
its operations, and interview its proprietors in order to answer the following:

1. Determine whether the business has any unfair advantages. If any, identify what
these are and how the business managed to have access to these advantages.

 None, it does not have any unfair advantages.

2. Prepare a VRIO analysis of the business.

a. What are its strengths or resources of value?

The strengths of the business include the great cooking skills of the owner who makes the
dishes that are being served in the eatery. Also, included in its strength is its location. The
said eatery is near the school making it a more suitable place to eat in the case of students
and faculty members who do not cook for their lunch or dinner. In addition to that, their
prices are affordable which makes it attractive because it is said to be student-friendly
meal. Lastly, its greatest strength is its already established name.

b. Are these resources or capabilities relatively rare?

No, it’s not rare considering there is lot of Filipinos who loves to cook and great on it. In
that case, it is not rare to have someone who is great in cooking especially those dishes
which are common in the Filipino table. It is also easy to establish an eatery near a school
and set prices which are affordable by students. But its already established name is rare.

c. Are these resources or capabilities imitable?

Yes, the dishes and the skills of the cook are both easy to imitate since what have been
mentioned in the previous item, there is a lot of people who are great in cooking especially
Filipino dishes. In that case, it is easy to imitate those dishes since the recipe for those
 have been passed down from different generations already but its brand cannot be easily
imitated.

d. Does the business have the capacity to make the most out of these resources?

Yes, as long as there are only few competitors, they can maximize their existing resources
because it will lessen the value of their resources if there will be a lot of competitors
considering that those resources are not rare and can be easily imitated. In this case, they
should try to improve their current standing by offering more products to customers.

e. In summary, identify the resources that give the enterprise its sources of
value and what your prognosis is regarding the sustainability of these
advantages.

The first one is the skills of the cook, these skills cannot easily sustain its advantages over
the competitors since there will a lot of competitors who will appear and may be better
than the current skills of the cook. Next one is the offering of affordable dishes for students
and other customers. This, also, cannot be easily sustained since the competitors can set
their prices which is the same as the business or maybe even lower. Last is the already
established name of the business. This will surely help the business maintain its standing
in the industry because the advantages from this one can be easily sustained. This is due
to the fact that it has been in the business for already a long time and making their
products known to a wide range of customers.