For the following question, illustrate your answers with industry and company ex

Question

For the following question, illustrate your answers with industry and company examples. You may wish to draw from the popular business press such as the WSJ, etc.

According to the resource-based view of the firm, internal resources can be instrumental in attaining a sustainable competitive advantage. Using company examples, describe the various types of firm resources. Also, describe the specific criteria managers can use to decide which resources/capabilities have the potential to create a sustainable competitive advantage.

Explanation / Answer

A company owns different types of internal resources that can help achieve the sustainable competitive advantage. A case of Apple can be taken for discussion. The first internal resource is the proprietary technology and inventions that are clean, environmental friendly and promote sustainability. It helps the organization to build the market that are less competitive in nature. For example, the iconic products like iPhone and iPad are the ones who have created huge value and still holds competitive advantage in the business environment. The second resource is the human resource that are innovation driven with high propensity towards creativity. It helps the organization to continuously improve upon the existing system. Besides, a focus upon the environment care, leads them to work in a direction to create sustainable competitive advantage. The third resource is the capital base a company owns. It can help in building or modifying an infrastructure that can facilitate the development of sustainable competitive advantage. Besides, the company can also create guidelines and policies to build a value chain that relies on ethical practices. For example, it is done by the different vendors for Apple in the country of China and for Starbucks Coffee, it is the coffee beans supplier from different parts of the world.

Managers have to identify the key sustainable competitive advantages, and the key capabilities required among the resources to achieve these sustainable competitive advantages. For this purpose, the managers set following criteria:

A. The past experience of the resource (HR) for work in the direction to achieve specific sustainable competitive advantages

B. Performance level of the resource (HR) when they work in a challenging environment

C. Presence of additional capabilities in the organization that can be devoted to achieve

D. The suitability of the technology with complete analysis towards its role in sustainability

Above are some of the criteria, a manager can use to select the resource, suitable for sustainable competitive advantages.

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