Question
Assignment Overview: The purpose of this assignment is to use the VRIO (Valuable, Rare, Costly to Imitate, Organized for Value) Analysis tool to determine the
Assignment Overview: The purpose of this assignment is to use the VRIO (Valuable, Rare, Costly to Imitate, Organized for Value) Analysis tool to determine the competitive advantage of a company of your choosing. Be sure to choose a for-profit medium to large size company and conduct research on the companys tangible and intangible assets.
Upon completion of your research, use your judgement to determine the top 6 capabilities of this company. Capabilities must include both tangible and intangible assets. (See your text for further detail on the differences.) Rate each capability on the VRIO Analysis and make a final competitiveness rating. Lastly write an Executive Summary with the following points:
Introduction Overview the purpose of this analysis and briefly what the company does. Be sure to refer to the VRIO Analysis Chart.
Paragraph 1 Overview the VRIO Chart & why the 6 capabilities are the most important ones for this company. Be sure to refer to the chart and discuss whether the capabilities are intangible or tangible assets for the company.
Paragraph 2 - Discuss the overall strengths (if any) for this company from the capabilities that lead to a competitive advantage. (Note: If the company has no strengths, use the space to expand on its weaknesses.)
Paragraph 3 Discuss the overall weaknesses (if any) of this company from the capabilities that lead to a temporary competitive advantage, competitive parity or a competitive disadvantage.
Closing Provide specific recommendations for the company to improve or maintain its current competitive advantage based on your analysis.
Steps to complete this assignment:
Choose a for-profit medium to large size company.
Research the company. Items to look for might include:
Mission/Vision Statement Company Values Products/Services Provided CEO Biography
Patents/Trademarks owned Physical assets that provide a competitive advantage Expertise in processes, such as Marketing, Manufacturing, etc. Thinks about What is this company known for?
Be sure you have a broad enough overview of the company to characterize 6 capabilities that include both tangible & nontangible assets. Think about what makes this company competitive or not competitive in their industry. Be sure to have resources to justify your points.
3. Complete the VRIO Analysis chart characterizing: o Capabilities consider both TANGIBLE & INTANGIBLE company resources.
NOTE: You must have examples of both! Minimum of 6 capabilities in total. Useshortphraseswithactionwords Be succinct with each capability, but meaningful by using adjective qualifiers.
o In relationship to the industry, determine (YES, NO, or ?) are the capabilities:
Valuable
Rare
Costly to imitate
Organized for Value
o In the RESULTS column determine the competitive status of each capability and include a short explanation as to why?
Sustained Competitive Advantage (NOTE: This cannot be achieved if you answered NO to any question on the VRIO!)
Temporary Competitive Advantage
CompetitiveParity
CompetitiveDisadvantage
4. Using your analysis, write an Executive Summary. o Follow the guidelines above for the structure of the Executive Summary. o Length 1 1.5 pages Include an overview of the capabilities.
CHART ONE: VRIO ANALYSIS
CAPABILITY | VALUABLE? | RARE? | COSTLY TO IMITATE? | ORGANIZED FOR VALUE? | RESULT |
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