Strategy Contemporary Business Examples Benefitting from RBV Analysis

Strategy: Contemporary Business Examples Benefitting from “RBV” Analysis Wayne Smith, Ph. D. wayne. smith@csun. edu Department of Management 1

RBV – Tangible and Intangible Resources • In general, the Resource-Based View (RBV) helps with understanding the internal organizational landscape. • Chief Assumption: An organization’s managers drive success in the marketplace. • This is sometimes referred to as “intrapreneurship”. • Organizational Example. . . • Tangible – – Financial Physical Technological Organizational • Intangible – Human – Innovation and Creativity – Reputation

RBV Analysis (compare as-is to desired-future) Tangible Marketable Products and Operational Fin Phy Tech Intangible Org Human Innov Rep Processes … … … 3

RBV – The Art and Science of Strategic Execution 1. Building an organization with the capabilities, people, and structure needed to execute the strategy successfully. 2. Allocating ample resources to strategy-critical activities. 3. Ensuring that policies and procedures facilitate rather than impede effective strategy execution. 4. Adopting process management programs that drive continuous improvement in how strategy execution activities are performed. 5. Installing information and operating systems that enable company personnel to perform essential activities. 6. Tying rewards directly to the achievement of performance objectives. 7. Fostering a corporate culture that promotes good strategy execution. 8. Exerting the internal leadership needed to propel implementation forward.