Comparing Resource Based Theory and Profit Maximization Theory in Morrisons

SIM336 STATEGIC
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY..................................................................................................................................3
Comparing theory and theory......................................................................................................3
Comparing theory and practice...................................................................................................5
Strategies implemented in Morrisons..........................................................................................6
Recovery plan..............................................................................................................................8
A risk management strategy........................................................................................................9
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is mainly defined as the process which results in planning,
analysing and assessing all the activities for achieving the goal of an organization for attaining
the set targets. Forming strategies and its management mainly results in directing the company
by planning and forming the policies with allocating the available resources which helps in
setting the goals as to attain competitiveness while operating in the dynamic environment. This
report provide details about the Morrisons, it is mainly recognized as the multinational retailers
mainly base for serving wide range of food and non-food products to large number of consumers
while operating in the dynamic market. In this report it comparing tow strategic management
models. Also, comparing the theory and practice with using the porter model. Further, giving
example of business with defining its strategy. Lastly making recovery plan and defining the risk
assessment strategy which helps in attaining competitiveness while operating in large
competitive market.
MAIN BODY
Comparing theory and theory
Strategic management is mainly defined as the process and approach which helps in
specifying the goals and objectives for attaining the competitiveness while operating in the
dynamic environment (Chofreh and et.al., 2021). The main aims for forming and managing
strategically in the company as for attaining competitive advantage. With using the resource
based theory and the Profit maximization theory helps in defining an attaining competitiveness
while managing the operations in strategic manner.
The resource based strategic management theory: In the resource based strategic
management theory, it aims in defining about all the internal capabilities as resource which are
valuable, rare, imitable and aid in attaining competitiveness while operating in the dynamic
market. This theory mainly focuses on the development of suitable resource which results in
attaining competitiveness while working with unique capabilities and skill (Strategic
management, 2022). Taking example of Morrisons, using this theory with strategically managing
all the company resource for attaining competitiveness.

Resources Rare Valuable Imitable Organised Competitive
Human
resources
x x ✔ x x
Financial
position
✔ ✔ x ✔ ✔
Global
presence
✔ ✔ x ✔ ✔
Leadership
team
✔ ✔ x ✔ ✔
Satisfaction of
consumers
✔ ✔ x ✔ Moderate
satisfaction
Thus, with the available table it can be analysed that using the resource based theory in
the company helps in attaining competitive advantage by analysing the sustainable the available
resources by strategically managing the firm performance which results in attaining competitive
advantage. As the firm operating and being recognized as globally, also operating with stable
financial position and good leadership team which is valuable and not imitable in nature helps in
attaining and strategically operating by managing its internal resources in dynamic market. Also
the human resources are imitable and not valuable in nature, as the recruiting skilled and
potential employees for working in company, these are imitable in nature which hinders in
attaining competitive advantage in the staff personnels. Thus. With using this theory in the
company enable the firm to implement the strategies as for managing the internal resources
effective and recruiting the staff personnels for improving the effectiveness and efficiency while
working with different resources.
Whereas with using Profit maximization and competition based theory: The profit
maximization theory is used by business as its main aim is to operate in the dynamic
environment as for attaining profits. This strategy is driven by the rose for developing and
attaining competitiveness by maximizing profits in the company as by reducing the cost for
attracting consumer as for retaining and growing its target base. Example: Tesco using the profit