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Organizational Appraisal
Resource

A resource is an asset, competency, process,
 skill, or knowledge controlled by an organization.
A resource is a strength
if It is superior ability to perform relative to their
 competencies. A weakness if Perform poorly
VRIO Framework

Value – Does it provide competitive advantage
 over competitors?
Rareness- Do other competitors possess it?
Imitability- Is it costly to imitate it ?
Organization- Is the firm organized to exploit the
 resources
If the answer is yes about any resource
      then it is of strategic importance



Value        Does it provide competitive advantage   Yes   No
             over competitors?
Rarenes      Do other competitors possess it?        Yes   No
s
Imitability Is it costly to imitate it ?             Yes   No

Organiza     Is the firm organized to exploit the    Yes   No
tion         resources
stages in organizational appraisal

1. Identify and classify the firms resources in
   terms of strenghts and weaknesses.
2. Combine the firms strengths into specific
   capabilities. Corporate capabilities are the
   things that an organization does exceedingly
   well.
3. Appraise the profit potential of these resources
   and capabilities in terms of their potential for
   sustainable competitive advantage.
4. Select the best strategy that best exploits the
    firm’s resources and capabilities relative to
    external opportunities.
5. Identify resource gaps and invest in upgrading
    weaknesses.

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Organizational appraisal

  • 2. Resource A resource is an asset, competency, process, skill, or knowledge controlled by an organization.
  • 3. A resource is a strength if It is superior ability to perform relative to their competencies. A weakness if Perform poorly
  • 4. VRIO Framework Value – Does it provide competitive advantage over competitors? Rareness- Do other competitors possess it? Imitability- Is it costly to imitate it ? Organization- Is the firm organized to exploit the resources
  • 5. If the answer is yes about any resource then it is of strategic importance Value Does it provide competitive advantage Yes No over competitors? Rarenes Do other competitors possess it? Yes No s Imitability Is it costly to imitate it ? Yes No Organiza Is the firm organized to exploit the Yes No tion resources
  • 6. stages in organizational appraisal 1. Identify and classify the firms resources in terms of strenghts and weaknesses. 2. Combine the firms strengths into specific capabilities. Corporate capabilities are the things that an organization does exceedingly well. 3. Appraise the profit potential of these resources and capabilities in terms of their potential for sustainable competitive advantage.
  • 7. 4. Select the best strategy that best exploits the firm’s resources and capabilities relative to external opportunities. 5. Identify resource gaps and invest in upgrading weaknesses.