International Business Report: Strategic Management Analysis

This report provides a detailed analysis of strategic management theories, specifically focusing on the Resource Based View (RBV) theory within the context of family businesses. The paper begins by explaining the RBV theory, emphasizing how internal resources contribute to sustainable competitive advantage. The analysis then shifts to a comparative study of Tata Motors and Reliance Group, applying the RBV theory to evaluate their strategic actions, resources, and competitive advantages. The comparison highlights the valuable, rare, imitable, and organized resources of each company. Finally, the report identifies potential future scenarios for both businesses based on the RBV theory and offers strategic recommendations to enhance their competitive positions in the international market. The report concludes with a summary of findings and a discussion of the implications of strategic management in the context of family businesses.

Running Head: International Business
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International Business
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Contents
Introduction................................................................................................................................2
Strategic Management Theory...................................................................................................2
Resource Based View Theory................................................................................................2
Comparison of Tata and Reliance Strategy-Making Actions....................................................5
Recommendation and Future Scenario....................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
The purpose of this paper is to enlighten the reader with the detailed analysis of strategic
management theories prevailing in the environment. Every business nowadays perform
differential functions that make them unique and competitive in the business environment.
These companies makes use of strategic management and decision making theory for the
success and growth of business. Strategic management theories are important for the business
because it helps the organizations in identifying the right path and working on it effectively
(Pee, and Kankanhalli 2016). Further, the below mentioned paper is segregated in three
different parts, that are analysis of strategic management theory present in the field of family
business. Secondly, comparative analysis of two family businesses in regards to the theory
mentioned in part one and thirdly, analysis of future outcomes and recommendations for the
organization to initiate effective success for the business in the target environment. More
details about the paper are mentioned below:
Strategic Management Theory
Resource Based View Theory
The Resource Based View theory forms a part of the strategic management segment of family
business. It is a managerial framework that is used to analyze the strategic resources that an
organization holds in the business environment in order to achieve sustainable competitive
advantage in the environment. This strategy was introduced in the environment through the
article given by Barney in the year 1991. The article “Firm Resources and Sustained
Competitive Advantage” explained the emergence of resource based view concept in the
worldwide environment (Hitt, Carnes, and Xu 2016).

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This type of strategy lays major focus on the managerial attention of the organization’s
internal resources in helping the business to attain competencies in the environment and
delivering support to the business to attain competitive advantage as well. This theory works
on the concept of providing sustainable growth advantage to the organizations in the
environment. Companies cannot attain sustainable business advantage in the market by
innovating the managerial functions once and or regularly, however, sustainable competitive
advantage is achieved by the organizations when they provide sustainable services to the
customers regularly by making efficient use of resources available to the business (Ferlie, et.
al., 2016).
Use of this model helps the business to analyze the resource available with the organization
and making full use of it as well. Resource based view helped in analyzing that not all
resources hold similar value in the business environment, also, one single resource do not
hold the potential to help the organization achieve its decision objectives in the environment.
The sustainable competitive advantage of the organization depends on the factor that to what
extend the resources can be substituted or imitated in the business environment. If the
business works with the resources that are easily imitable in the market, then they would not
be able to manage differentiation for a long time-period in the business (Hoskisson, et. al.,
2018).
Thus, it should be noted that it is important for the business to participate in analyzing the
type of resources that they hold and the resources that the business need to change or attain
from the external environment as these resources nurture competencies of business. This
model majorly focuses on the network of organization to attain resources and become
competitive in the worldwide community (Bromiley, and Rau 2016). This model explain the
resources on the basis of four segments that are:

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Valuable: the VRIO analysis form a part of resource based view theory of the organization.
The first segment of this process explains about valuable features of the resources of the
organization. It should be noted that the organization need to make use of valuable resources
in the environment so as to give valuable facilities to the customers in the society. If the
resources are not valuable that other companies would be able to easily access the resources
in the environment and reduce the rarity of the products and services of the organization. This
aspect also helps the business to work on actions that supports the company in improving
effectiveness and efficiency of the business (Kull, Mena, and Korschun 2016).
Rare: rarity refers to the features present in the products and services or the resources of the
company that are not available to each and every person in the business environment. Rarity
makes the organization different in the environment as it is not available to each and every
person. These are features that are not available to the competitors of the organization. In
order to grow effectiveness in the market, it is important for the organization to make use of
resources that are not available to every other organization in the market (Post, and Leavell
2019).
Imitable: rare and imitable are the two features of the resources of the organization that goes
hand in hand as if the resources are rare then it will not be imitable while if the resources are
not rare then it can be easily imitable by the competitors in the environment. Many times
while competing in the market, the competitors start to imitate the business strategies of the
organization for which they imitate the resources available with the organization. Therefore,
imitable resources could eliminate the sustainable competitive advantage of the organization
(Solesvik 2018).
Organization: organization means the products are non-substitutable in the environment.
Organization refers to the stage where the resources of the business are organized and used in

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an effective manner and there is no need to replace such products in the environment. Thus, it
should be noted that if the resources of the organization and managed appropriately, then the
company would not face the need to substitute them with non-rare resources from the
environment (Tate, and Bals 2018).
Thus, it should be noted that this analysis evaluate potential resources present with family
organization and then organize them in such a way that protect the interest of the organization
and make the products and services competitive in the business environment. Resources are
important part of the organization that helps the business in eventually achieving its
objectives in the market. If the resources of the organization are not effective, then it would
subsequently appear in the products and services and it would eventually affect the
sustainable competitive advantage of the company (Popli, Ladkani, and Gaur 2017).
It should be noted that it is extremely important for the business to analyze the resources
because it could deplete the position of the organization. With the use of this type of theory,
the organization gets to win against competitors in the environment because the company
knows about its resources and how to use them whereas competitors does not know enough
about it. Thus, it should be noted that in this way resources could modify the structure of the
company and make them achieve sustainable competitive advantage as well.
Comparison of Tata and Reliance Strategy-Making
Actions
Tata Motors and Reliance are the two organization used for the competitive analysis for the
given paper. It should be noted that both the company are successful in the business
environment which means that they know their resources and capabilities from the core and
use it effectively. Below mentioned is the resources based view analysis of both the
organization in order to analyze the effectiveness and competitive of both the organizations.

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Tata Motors Group
Resources Valuabl
e
Rare Imitable Organization Advantage
Legal
Requirements of
Business
Yes No Imitable by
rivals
Yes Less Critical
Factor
Use of
technology in
business
Yes No Non-
imitable by
rivals
Yes Has potential
Availability of
Financial
Resources
Yes No Imitable by
competitors
Yes, it has an
effective financial
position
Temporary
Diversification Yes Yes No Yes Permanent
Digital
Marketing
Strategy
Yes Yes No Yes Has potential
Cost
effectiveness
Yes Yes Yes Yes Permanent
Supply Chain
Integration
Yes No Yes Yes Permanent
Leadership and
Organizational
Yes Yes No Yes Strong
Competitive

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Structure advantage
Intellectual
Property Rights
Yes Yes No No, as so far the
company has not
utilized the full
extent of IPR and
other properties
Permanent
competitive
advantage
Valuable: it is an undeniable fact that the resources of the organization are valuable in the
society. It should be stated that business is moving with a fast pace in the international
environment with the help of such valuable resources. These resources provide optimum
opportunity to the organization to use it in the most significant manner to provide efficient
services to the customers. Three most valuable resources of the company are diversification,
cost effectiveness and leadership structure. By making use of these resources in the business
environment, the organization is able to drive satisfaction from the customers.
Rare: the resources of the company Tata Motors are rare to some extent. It should be noted
that rare refers to the resources that can be adopted by only a few organizations present in the
global environment. However, the company does not rank high in this factor as there is scope
for Tata to utilize the value of their resource and make it rare as well (Dutt 2016).
Imitable: as only a few resources available with the organization are rare in the environment,
therefore, imitable features explains that yes such resources of the company can be easily
imitated by the competitors in the market. The organizations present in automobile industry
use high technology in the community that helps them to imitate the resources and drive
competence for the business.

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Organized: it refers to the process in which the business makes use of given resources
effectively. Thus, it can be said that the resources available with Tata Group are resources
and they are used efficiently. However, in order to maintain sustainable competitive position
in the international environment, the company needs to organize the resources in a better way
(Snehvrat, and Dutta 2018).
Reliance Group
Resources Valuabl
e
Rare Imitable Organization Advantage
Relationship
with
partners
Yes No Easily
Imitable by
competitors
Yes Not a Critical
Factor
Use of
technology in
business
Yes Yes Non-imitable
by
competitors
Yes Permanent
Use of
Financial
Resources
Yes Yes Imitable by
competitors
Yes, it rare for
business but
competitors can use
their resources wisely
to achieve their
position
Temporary
Brand
Reputation
Yes Yes No Yes Permanent
Innovation Yes Yes No Yes Highly

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sales mix Beneficial
Cost
effectiveness
Yes Yes Yes Yes Permanent
Supply Chain
Integration
Yes No Yes Yes Has Potential
Human
Resource
Yes Yes No Yes Strong
Competitive
advantage
Intellectual
Property
Rights
Yes Yes No Optimum utilization
of IPR.
Permanent
competitive
advantage
Valuable: yes, the resources obtained by the company Reliance are valuable in the market
and the company has successfully derived such value in the business as well. It should be
noted that it not important to attain highly valuable resources for growth, similarly, the
company had average value products in the market which they organized and used efficiently
that subsequently helped them in growth prospects (Satyanarayana, Rao, and Naidu 2017).
Rare: the resources available with the company are rare and help the business in achieving its
desired objective in the market. Rare in the given case means that Tata used the valuable
resources in such a way that it became rare in the market because not all competitors were
available to attain this much revenue using the given resources. Thus, it can be said that
organization facility of business made the resources rare in the environment.

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Imitable: the resources of Reliance can be imitable to some extent in the business
environment. It should be noted that the resource available with the organization are not
extremely rare but they are made rare through the ways in which it is used. Therefore, it
should be noted that the competitors can imitate the resource but they need to imitate the
strategies as well but they are incapable of inducing them in the business (Mazumdar 2017).
Organized: lastly, it should be noted that the resource of Reliance Group are highly organized
in the environment. It is one of the most important feature with the help of which the
company has successfully grown in the market even when there were average resources
available for them. Therefore, organization of resources is important because it helps the
business in making use of the resources in its full capacity.
Recommendation and Future Scenario
In terms of functioning, it can be said that the company Reliance makes better use of the
given resources in the environment that helps the organization to attain sustainable
competitive advantage in the given market. Although, Tata is present in the global
environment, however, Reliance has worked on its niche and captured it in a better way as
compared to Tata. Therefore, despite of strong global presence of Tata, there is still some
scope growth for the organization by making effective of their resources in the value chain
and internal environment.
Initially talking about the growth and future scenario of the company Tata Motors, it should
be noted that the company has high ended products in the environment that could make the
organization one the most profitable companies present in the worldwide environment.
However, the company does not make use of given resources wisely. There is presence of
value, rarity and non-imitable features in the resources of Tata but lack of organization
facility makes it difficult for the organization to subsequently achieve the desired position in

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the market (Dutta 2018). Now, taking all the things constant in the future environment, the
fact is clear that the company would not be able to attain sustainable competitive advantage
in the market; even it would lose the given competence as well. It is important for the
organization to attract more results from less resources in the environment (Garg 2020).
Hence, it is recommended to Tata Group to utilize the resources wisely so as to sustain their
competitiveness in the future as well. The company should analyze the resources available to
them and the organize them on the basis of their usage in the business. The company should
not find ways that how other organizations organize their resources and use them; instead
they need to find it themselves by testing the resources in various ways (Breuer, and Lüdeke-
Freund 2019).
Thus, it should be noted that once the resources are organized and the company knows how
to use it, then the business would not be able to face any problem in the competitive
environment. Thus, it should be noted that Tata Group is comparatively more expanded in the
international market, but the organization does not know enough about the internal structure
and capabilities of the business. Therefore, this model will help the organization to look
inside the structure of the company and find out the issues present in the business.
Competence of the business in the external environment can only be sustained if the core
environment of the business is robust and capable of withholding it. Therefore, Tata Motors
need to make the internal structure of the business strong and positive in order to reciprocate
the sales attain satisfaction from the customers in the internal environment (Crawford 2016).
Considering the future scenario for the company Reliance, it should be noted that the future is
extremely profitable for the organization because the company already knows it internal
competency and is actively using it achieve satisfaction of the customers present in the
market. With average resources in the environment, Reliance is able to capture the interest of

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the customer because the company knows about the extent to which they can use the
resources to drive satisfaction in the environment (Caussat 2017).
However, through this analysis, it was seen that the resource available with Reliance are
limited due to which the organization has been successful in capturing the niche but it can
never compete globally. Therefore, in order to attain better level of profitability in the
environment, it is important for Reliance to expand the scope of their resources and welcome
other resources to achieve competitiveness in the environment (Kulkarni, and Vel 2019).
If the organization would attain better resources that are more valuable and rare in the
environment, then Reliance would be able to use them to initiate internationalization strategy
in the environment. For the purpose of internationalization, the business require large
bandwidth of resources because the business needs to be prepared for the approaching
demand of the customers in the environment. Therefore, expansion in resources facility help
the organization to increase its competitiveness in the given market and take it to other
markets and achieve growth as well. Lastly, it should be noted that the company Reliance
need to find resources that hold more value and are rare (Shujahat, et., al., 2017).
Until the time Reliance was efficiently working in the niche market, the organization was
able to gain satisfaction because low competition and efficient use of strategies as well.
However, entry in international market increase the scope of competition for the business. In
this type of market, the company would acknowledge several successful organizations with
highly valuable resources which would make it difficult for Reliance to fight back. Therefore,
the company need to invest more in attaining valuable resources in the environment so that
they could win against cut throat competition present in the international environment
(Kellermanns, et. al., 2016).

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Conclusion
Thus, considering the explanation of above mentioned concepts, it should be concluded that
the report highlighted details about the analysis of the companies Tata Group and Reliance
Group in the business environment. The paper evaluated importance of resource based view
theory for the organizations. Through the analysis, it has been evaluated that even when the
business has extremely rare resources but they do not know how to use it, then they would
fail subsequently. Reliance has better hold on the market as compared to Tata because the
company uses the resources wisely. Thus, it should be noted that the resources could
eventually become rare in the market if the companies start organizing it and making use of it
effectively. Lastly, given recommendations would help the organization to get closer to their
desired position in the competitive environment.

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