Answer: 4

From the article “Competing on Resources” we can see that Collins and
Montgomery state how the assets of a company is the key driving factor
when operating in a dynamic business arrangement. Furthermore, they
have suggested a business framework which has described the entire
strategic planning process in 2 ways. One of this ways helps to
determine if the company resources have a value that can serve as a
basis for executing the strategies. The other is the location where a
company decides to start operating is the one that decides the
effectiveness of it as much as the available resources do.1
The resources-based view (RBV) is a framework that is used to
determine the strategic resources required by a firm which have the
ability to create a distinguishing edge i.e. competitive advantage for
the firm. It also helps to explain why certain competitors are more
profitable than the rest and how to implement the core practices into
business operations and how to enhance the diversification strategies
so that they can be easily understood by the mass.2
The statement “No two companies are alike because no two companies
have had the same set of experiences; acquire the same assets and
skills, or built the same organizational cultures.”3 This is rather a
very realistic assumption that is based on the fact that no matter
what the resource, if utilized properly has the ability to be valuable
to any organization. For instance, when a company decides to enter a
new industry as a part of its strategy, it uses its skills to
transform its existing resources in order to fulfill the needs of the
new customer group innovatively.
However, both the effectiveness of both these assumptions can be
questioned as to whether they are effective or not. Reality based is
when an assumption is made that the implemented ideas are put forward
and they have worked as per the plan. Value based is when statistics
and facts are used to determine the future of a company with high
degree of accuracy, and maximize its profit. Hence, for a business to
truly succeed, both these assumptions have to complement and balance
each other.
ADD BIBLIOGRAPHY
Answer: 5
The article ‘The Balanced Scorecard: Measures that Drive Performance’
written by Kaplan and Norton states how managers don’t prefer a
tradeoff between operational and financial measures.1
The authors devised what we call the “Balanced Scorecard” that
encompasses 4 divisions: Financial Perspective, Customer Perspective