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Information for RVB Analysis - EVA, resources, capabilities
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In this SLP, you will be researching sources of information required to complete an RVB analysis. This is similar to the exercise in the last module, where you learned where to go to find information about an industry`s external environment. We will complet this exercise in steps, and in the end, you should have a list of potential resources ready to use when you conduct your internal analysis in this module`s case.
Step One: RBV is based on the concept of the creation of economic rent thought distinctive capabilities. Thus, the first step is to find a way to value a firm`s economic rent or Economic Value Added (EVA). A firm`s EVA is the amount of capital it generates above and beyond the cost of doing business. Find out how EVA is measured and how you can determine a company`s ecomomic rent.
According to RBV, a firm`s competitive advantage is driven by its ability to manage its unique capabilities and resources to achieve above average returns.
Step Two: Resources are the inputs into a production process. They can be capital, equipment, patents, skill sets of individual employees and/or managers, financial resources, etc. Resources can be tangible or intangible. Individually, they may not necessarily lead to a competitive advantage, it is how they are used and the synergies they create that make them strategically valuable. Research web and library sources that would give you data on a company`s unique resources. Find a minimum of 2 different sources for data and information concerning the following:
Tangible Resources
Physical Resources
Financial Resources
Human Resources
Intangible Resources
Technical Resources
Intellectual Resources
Goodwill
Step Three: Distinctive capabilities are those competencies possessed by a firm that can not be copied or copied only with great difficulty. Research web and library sources that would give you data on a company`s unique resources. Find a minimum of 2 different sources for data and information concerning the following:
Architecture
Reputation
Innovation
Step Four: In a paper, list your resources from steps 1-3 above. For each source, provide a paragraph explaining what information is available, how it would be useful in an internal analysis, and critiquing the source (for example, What are the limitations of the source? Is one better than the other? Why?)
You may be concise in your presentation of this SLP. It does not have to follow the conventions of a written case paper. Tables or bulleted lists may help you present the information concisely and make it easy for the reader to quickly grasp the information. Be sure to provide complete references for each source on a separate reference page.