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Introduction
Strategic management theory
Comparison of strategic theory among two family
businesses
A future scenario about strategic management theory
Conclusion
Every
company has its specifications and understandings about the business and
implements different strategies according to new requirements. And when the
theories involve the management strategies then the concept and purpose of the
business clearly explain in better terms. Bestway is one of the best family
businesses that include a lot of opportunities, inventions and ambitious
according to business strategies because it is going to represent the top-level
businesses expressing the personality of one person
Bestway
organization is taking start from a single store in 1963. It develops a
specific place in the market because it starts providing halal meat to all the Muslim
community and gives them according to their requirement and makes its place in
the market. Bestway follows the successful strategy that helps in its
development and now it becomes one of the biggest companies in the world. This
company has huge businesses for export. Put their money in more investment
opportunities and most important point is that it drives more opportunities for
bringing innovation in the organization. The strategic management theory is
very helpful in this regard. It explains all the terms and basic purpose of
business in the most effective way. It enhances the requirement of the business
and explains what is the style of performing the business in the market and how
they capture the attention of market because when an organization successfully
running its all operations then they must implement a most effective strategy
which acts as helping tool and provide lots of success to the organization.
Strategic
management theory:
Strategic
management theory helps to explain origin, principles, applications and
evolution of business most effectively. strategic management theory of Bestway
organization help to explain that what is the methodology of doing business in
the market and how to perform all the duties most effectively because it
provides the working criteria of the business and explains how business become
successful and what strategies they have to use for performing the business
operations. There are lots of strategies management theories according to different
business requirements
The
basic purpose behind the competitive advantages is the strategic management
theory according to business requirements. By sustaining the competitive
advantages, the company have to understand in a better way it's all the
resources and also how to manage its all resources by generating maximum
outcomes. Resources based theory explain a strong part of strategic management that
help in explaining the competitive advantage of the company, maximize its
performance and also explain the fundamental resources according to their
attributes and abilities that is the cost to copy and most valuable for the
business and its development. There is s strong link between the resources of
the firm and its competitive advantages and this link stable over time
according to new requirements
To
generate the competitive advantages by utilizing the resources of the
organization, four indicators are explained in better terms that provide the
firm basic need which include non-substitutability, inimitability, rareness and
value of the business. firm assets are huge according to its requirements and
function that include its knowledge, information, attributes of the firm,
organizational processes, capabilities and processes that help in improving the
efficiency and effectiveness to conceive and implement strategies in the
organization
It
provides maximum competitive advantages when by implementing value-creating
strategy, the competitors never copy that strategy and company become different
and successful in the more competitive environment. So for providing more competitive
advantages in the organization, the resources of the firm utilize in four
different ways according to consider the requirement of the company and manage
all the ways according to the performance of the company. These ways include no
any strategically equivalent substitute is preset for resources, it should be
imperfectly imitable, it should be rare from multiple potential and current
competition and it should be valuable for the organization as it explains the
opportunities and threats according to the environment of the organization. In
the strategic management theory, competitive advantages are the most common
term used in the development of the organization. Bestway utilizing its
competitive advantage techniques and provide lots of benefit to the
organization because the performance of the organization has a very strong link
with the competitive advantages and it makes the company more strong and
performs very well among multiple competitors
It can easily understand that for superior
performance competitive advantage is the most important factor. The general
manager of the organization has a responsibility to survive and success the
company with long term strategies by considering the anatomy of competitive
advantages. To examine a different aspect of the competitive advantages, the
general manager utilizes the framework named SELECT for managing all the factors
systematically. The manager also considers the time-span, its causes, effects,
locale, and substance and is the expression on the organization. So it is
beneficial for the organization to take the competitive advantages and obtain
lots of benefits for making the organization more successful. All effects of
competitive advantages enhance the efforts of the competitive advantages and
company get a better advantage for enhancing its potential and maintain in sustainable
position for long term
Resources
based view theory is helpful to consider all the competitive advantages for the
organization. It also determines that the theory of resource-based view theory
is just like competitive advantages theory that explains all the beneficial
parts of the organization. Company obtains sustainable competitive advantages
after the management efforts for generating the required output. When a company
able to obtain sustainable competitive advantages then it can also earn return
beyond its limitations. So it gives more attention to how the firm utilizes its
resources most effectively and sustains advantages in better way. Resource
based theory is helpful in this regard when the resources of the organization
are not duplicated and facing barrier and having some value characteristics
This
theory help in explains the basic resources and its effective utilization in
better way because when organization run in the market with multiple
competitors, then they have to manage such strategies that give them long term
benefit and also utilize its all the resources in such a way that company
obtain competitive advantages in the market. Models and principles are
established to follow the strategic according to competitive advantages and
determine that company has to understand its basic requirement and limit of
resources so that the management set all the targets and standards according to
consider all the resources and enhance the performance of the organization in
most effective way. When the company can able to meet all the requirements of
customers on right time then it shows that company is able to obtain
successfully its significant strategies and sustainable competitive advantage
and using that tools are improving the training of the organization
Bestway
is the major family business and its follow the resource based theory most
effectively. But with this the Nisbets is also another organization that
utilizing the same theory of resource-based theory according to its
requirements. Both the companies consider that competitive environment in most
effective way and able to generate competitive advantages according to its
performance. The resource-based theory help the organization to maximum utilize
their all resources most effectively and generate an environment of competitive
advantages because no one can copy the resources of the company and how it work
effectively
Organization
has to consider that what kind and limit of resources we have and how to
utilize all the resources most potentially because the return of the company
enhance when its resources give more benefit. the organization have to manage
its competitive advantage by utilizing its all resources in such a way that it
can beat the market target and generate high level results according to new
requirements and demands. Every organization used different type of resources
according to their requirement and performance
Comparison of companies
according to resource based theory:
|
|
Bestway |
Nisbets |
|
Heterogeneous |
The
Bestway organization has specific resources as compare to other competitors
and obtains maximum benefit by using its skills and resources. its effective
management strategies are very helpful to utilize its all resources to
maximum level and generate high returns according to new requirements. By
utilizing its resources in most effective way the company can beat its
competitors in most effective way and also enhance its level of return
according to new requirements and manage in accurate way. |
Nisbets
has also unique resources as compare to its competitors. Its performance is
very much different because its provide services to its all customers and
maintain a strong position in the market so the company focus on utilizing
its personal skills and all the traits that company learn to its employees.
Company can obtain better understanding about the market condition and
understand that how to utilize its all resources and generate more results in
the market because when it utilize its skills and resources in most effective
way then it can give long term benefit without taking outside resources . |
|
Immobile |
Company
has resources which are immobile. it
means that company never easily copy the other resources and focus on its own
utilization according to its requirement. The resources must be unique and
different from others according to new market requirement and no one can see
the resources moving from one organization to another because this is not
easily possible to generate the value of business. |
This
company more focus on its skills because its provide services and different
product to its all customers and make a position in the market from many
years. So it depends on the organization that how to use its own resources
because duplicating the resources of others is not easy and consider very
difficult for the management of organization. So it is consider a beneficial
aspect that immobile resources enhance the competitive advantages in the
market and company utilizes at their best level. |
|
Valuable
framework |
For
determine the resource of the organization , the management of the
organization use VRIO framework to determine the performance of all resources
and consider that is the resources completely provide benefit to the
organization or not. So it helpful in explain the different variable to
determine the performance and utilization of resources in most effective way
and provide positive result in all aspects. |
Valuable
framework must be utilize by the company and its management because they have
to consider all the dimension of resources that give lots of benefit for the
profit generation and enhance the level of performance for taking competitive
advantage. The framework of resources include four dimension; valuable, rare,
imitability and organized to capture value. So these dimension help to
explain the resources and its utilization in most effective way and provide
lots of benefit. |
|
Consider
the value of resources |
When
the organization has ability to utilize its all resources then the
organization can better understand all the tactics to generate more profit.
Bestway organization has ability to understand what they have resources and
how to utilize them in most effective way according to market requirement and
improve its performance to generate more revenue. |
Nisbets
organization is one of the best organizations that utilize its all resources
in most effective manner and they generate maximum results by enhancing level
of performance. Company has to consider that what is the worth of resources
they have, and how to utilize them in most effective way to get competitive
advantages in the market? So it depends on the organization and its
management that utilizes its valuable resources in most effective manner and generates
more outcomes. |
Strategic
management theory is very important for every organization like Bestway or
Nisbets. But for using the resource based value theory organization has top
concern many issues. Many circumstances present behind the selection of
resource based theory and organizations may use any competitive positions to
handle in the market. These positioning involve benefits positioning, services
positioning, innovation positioning, quality positioning and price positioning.
So the companies have to consider any positioning to determine the resource
based theory.
There
are also many problems face by the companies who using resource based theory
only to obtain the competitive advantages by utilizing the internal resources
of the organization. It may affect the market competition, regulatory policy,
strategic planning and industrial organization view and many others. All the
internal and external resources are necessary for the development of
organization but its internal resources enhance the performance of the
organization and also provide competitive advantages. The RBV framework tells
that management of the organization that improves the internal resources by
using these frameworks but how to improve it never inform in details. So the
management of company never understand that how to enhance the internal
resources by using this framework. A lack also appear in the performance of
resource based value theory that is, it eliminate the role and responsibilities
of managers and leaders of the organization that improve the performance of
system and processes and at the results high value resources generated for the
organization.
It
must include the role of leaders and managers that perform active participation
in the processes and system and improve the performance and working in most
effective way. There are also many factors that disturb the market and create
unpredictable conditions like new inventions, innovations and advancement in
technology industry. These factors affect the performance of internal resources
and the resource of company is considered outdated. So all the theories belong
to utilization of resources is going to fail and company has to bring new and
innovative resources to perform its operations.
In
the stable competitive environment, the resource based value theory may work to
some extent. Another conception is also present according to RBV theory that it
is more effective in short term strategies and companies have to maintain their
performance in long term scenario. The framework given in the RBV theory is
also specific for the organizations and they have to consider only internal
resources but not properly use remaining resources according to overall
requirement of the organization. RBV in single terms not effective at large
scale. Because it only deal with limitations and handle only resources of
organization of internal level. Resource
based value is very much effective for the competitive advantages but only
competitive advantages are not basic requirement of the organization. Many type
of strategies and theories are useful for developing the operations of
organization in most effective manner. RBV theories have to work with multiple
theories and manage in the organization according to its basic goals and
targets.
Company
has to consider all the basic requirements about the theories and their end results
according to final production. Companies have to manage all the activities
according to its functional requirements and all the resources and facilities
used for the organizations. Companies have to consider the usage and
implementation of RBV according to their competitive advantages and maximum
utilize its own resources without any external involvement.
RBV
with the porter’s competitive positioning is very strong weapon for the
organization at large scale. The strategy of firm must align with the
environment according to Porter’s views. Customer preferences also change the
utilization of resources of the organization and organization give more focus
on the preference of customers. Together with the lower prices, it focuses on
more customization and more responsiveness and develops the better product
performance for the organizations. Porter explain the company strategy in two
different dimensions; one is cost which must be lower as compare to competitors
and the second is maintains the reasonable quality and price simultaneously.
Demand of customer effect the performance of the organization in many ways and
it will consider very important for the organization and its long term
development
All
the resources and capabilities of the organization are difficult to imitate and
consider dynamic in the RBV of the organization. The capabilities of the firm
are establish according to the efforts and experience of the organization and
these develop in the long period after some performance. Company has to
understand its basic requirements and consider processes and its routines
performance. The role of RBV is very impressive in performing and utilization
of organization’ resources in the most effective manner. RBV is very effective according to
competitive advantage and the competitors never obtain the resources of the
organization because the internal resources of the organization are not capture
by other competitors and they never get benefit that enjoys the company. When
the company actively works with the RBV theories according to remaining
strategies then the company able to obtain long term competitive advantages in
all type of scenarios.
At the end of discussion, we can conclude that every
company is utilizing more effective strategies for its business and try to
implement such strategies that give them more benefits as compare to its
competitors and beat the competitors in many ways. The internal resources of
every organization are different from other companies and they have ability to
manage its all resources in most effective way. By utilizing the internal
resources the company can get maximum benefits and these resources are unique
and different from others. For this purpose, the company is utilizing the
Resource based value theory which is major part of strategic management theory.
This strategy help the organization to maximum utilize their all internal
resources without the support of external resources and obtain the competitive
advantages. This theory focuses on effective utilization of internal resources
of the organization and generates the outcome different from others. A major
benefit is obtain in this regard that company never rely on external resources
and try to enhance the utilization of internal resources because these internal
resources are only authority of company and no any competitors can get these
resources. Resource based value theory give more focus on the utilization of
resources and develop a strong image in the market through its effective
performance and its results. RBV theory give more effective result when its
actively work with other theories and provide best outcomes that attract
maximum customers and consider the market demand in most effective way.
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