To determine whether an organisation gains competitive advantage from its competencies its needs to test them using Barney's VRIO test $($Valuable$,$ Rare, Inimitable and Organisation$).$ Which of the following is the correct way to apply the VRIO test.

a$.$

Test each competency in turn using the the full VRIO test. So is that competency valuable, is it rare, is it inimitable and does the organisation gain the value from that competency. Ensure evidence is provided from the organisation to support your assessment of each element of the test.

b$.$

Look across the competencies and see if there is one that passes the valuable test. Then move to the rare element and determine if there is a competency that is rare. Conduct a similar approach with inimitable and organisation. Back up your assessment with evidence from the organisation or case study.