Running Head: WEEK 3 TEAM SUMMARY

Week 3 Team Summary

STR/581

WEEK 3 TEAM SUMMARY

SWOT

VCA / RBV Value chain is a chain of business activities that transforms inputs into outputs that customers value. Value Chain Analysis (VCA) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value. The value chain frame work consists of two elements: Primary activities and support activities. Primary: Those that are involved in the creation, sale, transfer of products including but not limited to after sales services Support: Those that support the primary activities Detailed approach: Primary activities include inbound logistics, operations, outbound logistics, marketing,sales, and service. Support activities within the value chain can be company infrastructure, HR management, technology development and procurement. Conducting a VCA consists of identifying activities, identifying cost allocations within the business. VCA utilizes a three circle analysis to compare: company's offering customer needs competitors offerings Resource Based View (RBV) attempts to analyze and identify a firmsstartegic advantage by examining a combination of skills and capabilities. RBV provides four fundamental guidelines: analysis of critical resources analysis of scarce resources profit driven analysis analysis of resource sustainability

WEEK 3 TEAM SUMMARY

Financial and Ratio Comparisons as an Internal Analysis tool

Analyzing and Researching Organizational Strengths and weaknesses

VRIO VRIO Analysis was developed by Jay B. Barney to evaluate resources of an organization and can be categorized as follows; financial, human, material and nonmaterial resources. VRIO Analysis is an analytical technique, which considers the following questions for each of the above mentioned resources; evaluation dimension for the organization as well as for competitors. The VRIO abbreviation stands for the following dimensions:

Value; how expensive is the resource and the ease of obtain it in the market whether its a purchase, lease or rent.

Rareness; how rare is the resource; respectively limited. Imitable; how difficult is it to imitate the resource. Organization; respective arrangement, does it support existing arrangement and resource usability.

In organizations VRIO is used to assess the situation of the company, its resources and possible competitive potential/potential for improvement in a given area, for a given resource. The assessment is then used for the strategic management of developing various areas and making

WEEK 3 TEAM SUMMARY

decisions for the advantage of the external, internal process and service securing when making outsourcing decisions. In practice, VRIO analysis can be used in combination with analytical techniques to help organizational management in evaluating business resources in a detailed view. However, in financial resources, many detailed financial indicators can evaluate the financial condition and/or performance of the business from a different perspective. Similarly, human resources, property or information are other detailed indicators of their efficiency, performance and quality. Hence, VRIO analysiss advantage is its clarity and simplicity.