Critical Essay

Read Complete Research Material

CRITICAL ESSAY

Comparison and Contrast of Resource Based View with School of Thought (Planning)

Introduction2

Discussion3

Planning3

Historical Development of Planning4

RBV and Planning Approaches5

Role of 'Planning' in Devising and Implementation of Business Strategies under RBV6

Strengths and Weaknesses of RBV through corporate and business strategies when compared with Schools of Thought (Planning)9

Roles of Power, Culture and Government Policy in devising and implementing effective and business strategies10

References12

Comparison and Contrast of Resource Based View with School of Thought (Planning)

Introduction

The purpose of this study is to compare and contrast the competitive advantage of resource based view with that of strategy development and formulation. The strengths and weaknesses of the Resource Based Views with planning are also discussed.

Resources are grouped in tangible and intangible components, and are present in any kind of Organisation. Tangible components include physical assets like plant, property and equipment, and intangible components include human capital, patents, trademarks, goodwill and the skills related to technology (Grant, 1991, pp. 114). Capabilities are defined as the ability of the Organisation to use its resources to meet the desired end effectively (Amit & Schoemaker, 1993, pp. 33-46). Capabilities are assets that are not seen, developed by an Organisation over a span of time which cannot be easily bought or captured; they must be made (Teece, Pisano & Shuen, 1997, pp. 509). Resource Based View argues that Organisations will have different nature of resources and distinct levels of capabilities. The survival of Organisation depends upon its capacity to induce new resources into the firm, building platforms for opportunities, and make the opportunities as its reason to excel (Peteraf, 1993, pp. 179).

Strategic management researchers have used Research Based View to understand the inter-Organisation difference in performance (Peteraf, 1993, pp. 179). In addition, it suggests that variedness in Organisation performance is due to ownership of assets that have differential productivity. Since, an Organisation's capability is explained as its ability to set up its factors of production (inputs) available to achieve its preferred outputs. In the purpose of certainty, the effectivity of the resources that an Organisation uses is measured by its growth which through it best possible information, strives to move ahead.

Discussion

Planning

It is an introductory step and an efficient action which figures out when a particular work is to perform, how it is going to be done and who is set to perform it (Urwick, 1945, pp. 132). In a wider sense, planning domain is an ability to look out for the best possible variables for an Organisation to adapt, analyze and carryout changes if necessary.

Organisational planning is outlined as all components that exist inside the Organisation which incorporates all the variables that are to be aligned with the Organisational external variables, i.e. environment. Environment refers to everything that is outside the border of the Organisation' jurisdictions and have the possibility to influence all or part of it. Urwick, (1945) disregarded a vital part of its area when the environment of the bookselling altered. The company was slow to exploit new engineering for e-trade, permitting the ...
Related Ads