Criticise in 2 paragraph tis statement, true or false? Assignment 2 competitive

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Criticise in 2 paragraph tis statement, true or false?

Assignment 2 competitive advantage and globalization                                                          

Resource-based competitive advantage that drives globalization strategies for the firms in question (Fortune 500 firms) has developed so well due to how well they use the financial resources they have. Mainly, this strategy of fully putting their resources in use makes Fortune 500 firms attain the desired proficiency and good organization. Generally, organizations applies this type of approach to capture the largest share in the entire market having in mind other companies as their competitors are as well present. This permits fortune 500 firms attain their goals (persistent competitive advantage). The Resource-based competitive advantage being utilized by fortune 500 firms creates a strong base in the market avoiding all barriers that can kick these firms out of the market.

Fortune 500 firm’s unvarying competitive advantage is well facilitated by how utilization of these resources lowers the risk taking advantage of all opportunities in the entire market. These firms’ uses different approaches which allow them win the competition in the market. In driving globalization strategies, how competitive the firms are (fortune 500 firms) and all basics needed in developing updated strategies allows organizations maintain their strong stand that is effective in the entire market. Nevertheless, when notifying globalization strategies of the firms our subject being resource-based competitive advantage needs to be realistic. While forming this competitive advantage it requires proper follow up for it to be dependent on the resources the firm has. Thus, it will be able to stand all the difficulties regarding the market achieve its long-term goals.

Fortune 500 firms in their plan to inform their globalization strategy they may be under challenge still while checking on the importance of competitive advantage. These problems when put in contrast with how competitive such firms are, they will assist fortune 500 firms get the best choice of recourses which will give the firm a strong competitive advantage over others. Thus, it will be effortless to attain globalization objectives planned to be achieved.  

Fortune 500 firm’s approach of resource control offers confidence which gives these firms competitive advantage that makes their globalization strategy up to date all times. When it comes to proper plan (project) organization it assists effective growth in development, operations and probable goals creating a prosperous plan. This allows resources to be properly generated through operations which achieve both long and short-term goals. Therefore, fortune 500 firm’s assurance forms a competitive advantage that is so strong to an extent it implement their globalization strategies.

References

Stadler, C. (2011).Enduring success: What we can learn from the history of outstanding corporations. Stanford, CA: Stanford University Press

Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650

Barney, J. B. (1991). Firm   resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

Explanation / Answer

I disagree with the statement with regards to resource based competitive advantage and globalization. In order to be successful organizations to focus more on their intangibles like capabilities, organizational processes, firm attributes, information, and knowledge rather than focusing solely on their tangible resources like assets. Capabilities are quite different from resources. Capabilities are organization specific and non transferable while resources can be purchased by other firms easily.

There is a strong inter-connect between capabilities and resources and so organizations will find it very difficult to pursue expansion and go global without developing capabilities. Capabilities help in the development of core competencies and this truly leads to sustainable competitive advantages. If the focus is solely on tangible resources then the current strategy being pursued by an organization will not be creating value. On the other hand a company will be able to create value if it focuses on its capabilities. The resources and competencies of a company together help to build strategic capabilities of the company. Core competencies will lead to competitive advantage and this will not be easily imitated or duplicated by the competitors.

References:

1. Resource based source of competitive advantage – On Target. https://www.cmawebline.org/ontarget/resource-based-sources-of-competitive-advantage/

2. Resource based view – Strategic management insight. https://www.strategicmanagementinsight.com/topics/resource-based-view.html

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