Contents

Question1. 2

Question2. 3

Question3. 3

Question4. 5

References

What is value chain? Explain components of value chain and discuss ZARA’s value chain activities

Answer:

• Value Chain Activity: The functional activities within the company which create value in the generated goods and services. Also, it is mean the occupational movement within the organization that generate profit in the appurtenances and services conferred.

Components of Value Chain Activities: There are two components of the value chain which are as follows

·         Primary Activities

·         Support Activities

Primary Activities Are directly involved in the production, manufacture and distribution of goods and services.

Also, this component mean the précised with the advancement, fabrication and dissemination of belongings and relevance.

Support Activities Assist in the accomplishment and helps in completing of primary activities.

Zara’s Value Chain Activities:

Zara’s value chain activity consists of raw material in which they source their material from china and Hong Kong to increase the quality of fabric while forcing the prices to stay low.

Another value chain activity of Zara’s is Intermediate goods in which fashion-sensitive items were fabricated internally, and price-sensitive components are utilized.

Third value chain activity of Zara’s is outbound logistics in which Zara can keep its cost lower by having the minimum amount of stockpile that is necessary. The value chain analysis helps us to get idea about what actually needed to be done and what things are going to get the betterments in the working of the organization.

Fourth value of Zara’s chain activity is marketing and sales. It is based around delivering products that match customer choice and desires and exceed their expectancy in the term of quality, design and services. (Hernandez & Pedersen, 2017).

The logistics are there that helps to maintain the working of the organization in an organized and effective way that helps to deal in the best working way for the organization.

Question2

Answer:

Scale and Non Based Scale Advantages:

Scale based market entry signify accelerated entry and offers the first nomad advantages, such as demand procuration, scale economics, and swap costs. These are going to highlight the things in a way that one must be able to enter and can get advantage effectively.

Scale based entries is also a presentation of critical responsibility to specific markets, which both encourage local consumers and suppliers and daunt probable competitor. The competitors are going to work on it in a way that it makes those worthy and this helps them to study.

Non-Scale based entries influenced when an entry is disastrous and management learns through their experience in Non-Scale based entries in moderator countries. There are different entries are there that do not need to manage by their own and which are going to work differently in management.

Non-scale-based entries allow organizations to frame themselves up slowly and steadily while enhancing abreast with the market and inhibit liability to the market. (Holtz-Eakin & Lovely, 2017)

Question3

Answer:

Oman’s definition of Micro, Small and Medium-size Enterprise (MSME):

According to Oman’s definition of MSME, Microenterprise is the formulation of fewer than five workers and an annual turnover of below than 25000 OMR. While Small enterprise is a formulation of five to nine workers with an annual turnover of 25000 OMR to 250000 OMR.

A medium enterprise is those who formulated by ten to ninety workers with an annual turnover ranging between OMR25000 to OMR1.5 million.

Five Strategies that characterize a growing entrepreneurial firm: 

One of the primary strategy involved in the growing entrepreneurial organization is growing.

When the organization is more significant, then higher is the chances of survival. Growing organization fascinate many entities to become entrepreneurs. The growing organization pays much attention in actions and less on inquires

The second strategy, which involves the growth of the entrepreneurial organization is innovation.

Innovation strategy is a form of discriminant strategy. The relationship between innovation and profitability is very positive. An innovative strategy helps an entrepreneurial organization to do business in a very new technological way, and it also conceives a more viable advantage. The innovative strategy makes employees of an entrepreneurial organization more ingenious and hazards taking than those at a larger organization.

The third strategy that symbolizes in the growing entrepreneurial organization is Network.

Network strategy is calculated development and knocking into a relationship, and bind among employees and firms. There are two types of Networks:

One is Personal and second one is Organizational. Network strategy produces valuable assets and freedom that lead to strong entrepreneurial performance.

Financing and governance is the fourth strategy that makes an entrepreneurial organization more reliable and more significant. In this strategy, entrepreneurs must build a relationship with foreign stockholders, even those with weak relationships. But in this strategy, financing must along with governance strategy. The organization becomes more extensive and thriving, more partnerships disbanded and more confront joint governance becomes.

The fifth strategy is Harvest and Exit, which plays an essential role in the growth of an entrepreneurial organization. In Harvest and Exit strategy entrepreneur achieved maximum profit from their labour and must go for the exit plan in business. Entrepreneur makes routes in Harvest and Exit strategy in selling a share, selling the business, consolidate with another organization, and asserts destitute. (Gupta, et al., 2018)

Question4

Answer:

VROI Framework:   

VROI Framework is the analysis of the viscous nature of reserve and efficiency of an organization and the adversity of their reproduction elsewhere. VROI Framework is the addition of Barney, who is considered with the articulation of the resource-based theory. (Song & Sung, 2015)

VROI Framework stands for Valuable, rare, inimitable and organized for usage. These terms are shortly characterized below:

Valuable: The legislative effectiveness possessed by the organization that helps it to develop revenues by taking advantage of opportunities or to reduce costs by counterbalancing threats.

For Example, the competency to achieve a cordial relationship with the authority or to give high quality after sale-service to consumers.

Rare:  The organizational competency that can only be acquired by the exclusive organization or just by some other organizations in the industry. Example of rare capabilities is The presentation of highly motivated and satisfied employees.

Inimitable: The competency acquired by the organization, which is impossible, very difficult or not beneficial to duplicate or counterfeited by the challenger. Example of unique resources is The potency to generate and accommodate new business.

Organized for usage: The organizational competency acquired by the firm that could be used through disburse commanding structure, employment processes, that are present in the organization. Example of the organization formed for usage is the availability of competent R & D personnel and research laboratories to establish new and enhanced commodity regularly.

Conclusion: To epitomize the use of VROI Framework for internal analysis, we note that viable critical choice results through the use of Valuable, rare, inimitable, and for which the department is organized for use. VROI Framework can help to complete the strategic implication of organizational competencies. Competencies that are not valuable, rare, or that can be aped should not accentuate by the firm.

VRIO is that method which is helpful to idealize the aspect in terms of making the accurate view of what resources are doing in the organization and what resources are providing the aspects that they are accurate and important as well. To attain competitive advantage an organization must gather the information about its resources as to whether they are going accurate or not. The VRIO chart will help them to idealize this successfully. Here is the chart for VRIO that helps the idealization of resources usage:

Resources must be valuable and hence they manage to become more productive. In the organizational behaviour, some theories need to be considered properly so that the cause of real success can be fulfilled and the organization grows well. First one is self-determination theory which deals with the self-development and self-control of the leader itself. The Valuable resources are very much important to be considered as this theory motivates the employee to develop a self-confident in them and show good performance in work. The reinforcement theory is the identification of the attitude or behaviour that is essential to be shown in the organization by the leader and from the employees as well (ukessays.com, 2019).

Your Resources must be rare otherwise it not gives you happening and strong results. Human behaviour is an important aspect to be considered efficiently in an organization if any organization has no focus on the behaviour of human then they cannot be able to get success. The human behaviour is that with which they act in an organization properly and efficiently with other employees in the organization.

The personality of every person is different among all the employees working in that organization. In organizations, human behave differently like sometimes employees in an organization focused on the behaviour of the boss if the boss behaves well then employees behave good and work with great efficiency as well. The cost effects the organizations working very much as it should be controlled and evaluated as well. These approaches are very much important to consider keenly in order making the working atmosphere of the organization positive and efficient in terms of getting success. The evidence-based performance of the leader is that he or she will follow the overall principles of the organization that are set by the higher management in terms of maintaining high goals for the organization as well as to make their team to follow that principle too.

Organizations have to face many of the problems in terms of achieving goals and managing the work with great efficiency and with accuracy. Some problems may be related to employee’s behaviour, that must be managed properly and the leader must resolve all the problems with great efficiency by listening to all the issues of the employees. Some issues can become in terms of dealing with the staff but that can be resolved by dealing with the staff efficiently after understanding the nature of work of the staff (Banfi, 2018).

References of ZARA a well-known fashion brand has its outlets at premium locations worldwide and in Oman as well

Banfi, M., 2018. Zara case study. [Online]
Available at: https://www.academia.edu/9244740/Zara_case_study

Carter, T. J., 2019. What is VRIO? The 4-Step Framework for Continuous Business Success. [Online]
Available at: https://www.process.st/vrio/

Gupta, Saini & Chaddha, 2018. MSME Financing: Growth and Challenges., s.l.: s.n.

Hernandez & Pedersen, 2017. Global value chain configuration: A review and research agenda. BRQ Business Research Quarterly, pp. 137-150.

Holtz-Eakin & Lovely, 2017. Scale economies, returns to variety, and the productivity of public infrastructure. international economic integration and domestic performance, pp. 73-91.

Song & Sung, 2015. A study on relation between strategic attributes of technological resources and competitive advantage: Empirical analysis of VRIO framework by using technology evaluation results of technology based SMEs.. Journal of Korea Technology Innovation Society, 18(3), pp. 416-443.

ukessays.com, 2019. Problems With The Global Strategy. [Online]
Available at: https://www.ukessays.com/essays/business/issues-problems-with-the-global-strategy-business-essay.php