Concept of Resource Based View - PDF
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Added on 2020-10-22
Concept of Resource Based View - PDF
Added on 2020-10-22
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THE BROAD THEORIESAND PROCESSESRELATED TO HRM AS ASTRATEGIC ACTIVITY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Q1 Explain resource based view..................................................................................................1Q2 Threats the organizations are facing in labor market of UK..................................................4CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
INTRODUCTIONResource based view is a technique through which company can evaluate its performanceregarding the usage of resources that permit them to stand in a competitive marketplace. Further,this report will highlight the concept of resource based view and its importance (Quinn andDavis, 2015.). Further, the project will outline how resource base view help the company to gainthe competitive advantage over its rivals with the help of VRIN framework that consists of fourcomponents i.e value, rare, imitable, non-sustainability, on the flip side, the project will outlinehow the resource based view helps the company to accomplish their goals and objectives andachieve success. Moreover, the assignment will outline the threats and challenges that anorganization faces in the labor market of UK which encompasses of rise of gig economy,unemployment, automation etc. TASK 1Q1 Explain resource based viewThe resource-based view is a method through which we can view an organization andaccordingly forming a strategy. Basically, this concept explicate the firm to be a collection ofassets. However, it's far those sources and the manner that they're blended, which makecorporations different from each other. Further, it is taken into consideration as an inner-outapproach even as analyzing the company which means that beginning of the evaluation is theinternal surroundings of the enterprise. Moreover, This method is primarily based at the idea that firms include diverse kinds oftangible and intangible sources which is inclusive of property, techniques, competencies, data,understanding, and many others. However, when these assets are mixed, they create enterprisecompetencies some of which create a combination of center competencies that offer competitiveadvantage to the company (Vernon, Hocking and Tyler, 2016). Further, resource based view isbased on two principles namely; sourcing decisions and corporations architecture wherein, thesourcing decisions says that the if the company do not any their competencies then it won't bepossible to build the strategies in order to cope up with competitive market, on the other hand,the corporations' architecture says that the company should develop such architecture thatrecognize competencies and different technologies that they need to develop to remaincompetitive. 1
Further, in the resource based review structure, assets are given the important role ofhelping corporations in accomplishing higher organizational performance and aggressive gain.Therefore, the concept has been evolved and determined via research and the information thathelps it. Further, resource based review impose that companies achieve success based on theirassets and talents in preference to their products and services. Thus, in resource based theory, theimportant terms include tangible assets, intangible sources, and skills wherein, tangible assets areincredibly apparent for instance homes, plant, device, one of a kind license, land, borrowers,personnel, patents, stocks etc, which may be touched and sensed and further, they have aphysical structure. Moreover, intangible sources are more difficult to realize which includescompetencies, experience and information of personnel, advisers, dealers and provider.Moreover, skills, expertise and experience can be incorporated within the organizations in-residence databases, non-public and organizational networks, manufacturers and popularity.Further, a corporations' lifestyle and values are very crucial for the resources particularly, forinstance, the winning attitudes to consumers, quality and exchange (Bromiley and Rau, D.,2016).Resource Based View For Competitive AdvantageA competence is a capacity to do something, wherein, the competence in context of organizationmeans that a company has a power or an excessive competence interest if it leads over itscompetitors on a competitive issue that customers prefer, on the other hand, a business enterprisehas a weak spot or a low competence if it performs lower than their competitor on an aggressivecomponent that customers' cost. Thus, competence is a manner of describing how successfullythe company carry out its vital activities. Further, competitive advantage is a reward that acompany has over its competitors that enable them to generate income or margins or keep morepatrons than the rivalry. Thus, a company's competitive gain develop from the assets that thecompany possess. However, the resource based view of the company follow VRIN frameworkwhich includes four factors namely; value, rare, inimitable, non-sustainable (Kull, Mena andKorschun,2016).Valuable: assets of the companies are more valuable if it provides strategic advantage tothe organization. Moreover, resources develops value as it assist companies in accomplishing themarket opportunities or enables in decreasing marketplace threats. Thus, the resource based view2
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