Strategic Management Resit Report Essay Example | Topics and Well Written Essays - 1000 words

Strategic Management Resit Report - Essay Example Since every organization wants to acquire competitive advantage therefore it was difficult to make strategies based on the external business environment due to homogeneity. However, resources such as reputation, credibility of employees, training and development methods etc. may vary from organization to organization and they are significantly hard to replicate (Gupta et. al., 2007). In the contemporary business environment resources based view of strategic management holds a remarkable position. Ever since it has emerged different critics have argued upon its importance in strategic management while some have defended its importance in attaining business superiority. Whatever the case may be one thing is obvious that resource based view in strategic management has actually strengthened the organization’s core values and integrity while improving the overall ethical conduct (Priem and Butler, 2001). This paper aims to investigate Resource Based View and its relevance with Stra tegic Management. Moreover its role in achieving competitive advantage particularly in an educational institution would be discussed with a case example. Discussion The theory of growth of a firm has actually laid down the foundation of resource based view in strategic management. An individual firm has a number of valuable internal resources which are mostly unique in terms of quality and quantity. For instance, the financial resources including all the monetary reserves, credits, accounts receivables etc., plant resources such as land and equipment, human resource which represents the nature of employees’ intellect, skills and credibility. Moreover the knowledge and expertise of an organization in industry and the overall management structure including planning and reporting are the important internal resources (Harrison, 2012). All of these are then combined with the strategic policies of an organization. The distinguishing nature of resources constitutes an organizationâ €™s core values which play a vital role in its overall success or failure. The accurate utilization of all these resources actually represents profitable long term strategic management which is a significant element of competitive advantage. The relevance of resource based view to strategic management can be substantiated on the basis of the fact that organizational strategies largely focus on increasing revenues while occupying unparalleled market share in the industry. On the other hand the sole purpose of resource based view is to achieve competitive advantage which makes it internally linked with the strategic management (Akio, 2005). Competitive Advantage Resource based view in strategic management plays a significant role in acquiring competitive advantage. For instance, if the Corporate Planning Department of a university requires maintaining distinctiveness in its management policies and customer services then it would need to implement resource based view in the followi ng pattern (Knott, 2009): Initially the organization would have to analyze its fundamental possessions including financial resources, plant resources and human resources. These are then divided on the basis of distinctiveness in the industry and overall participation in carrying out different business