Strategies That Are Not Resource-Based Are Unlikely to Succeed - Essay Example

Strategies that are not Resource-Based are Unlikely to Succeed”. Discuss. Introduction A business organization is recognized from its developments and establishments in different sectors, including the strategies that are used to address social, economic, political, cultural and religious factors. The ability of a business firm to innovate and integrate new technologies and digitalization determines the position of the organization in the global business world. Additionally, effectiveness and developments in the financial security sectors also help immensely in weighing the potential of the company, and its potential to protect its finances, resources and property from insecurity. Developments in these various organizational sectors are measured by the ability of the department leaders to manage the resources to better standards. The major players in the development of a business organization are the consumers or the targeted groups because the buyer decisions contribute significantly to what they purchase from business organizations. Additionally, the consumers help in determination of how resources within a business organization are utilized, and this follows the fact that organizations invest their resources in attempt to satisfy the needs of the consumers and meet their expectations. Resource-based strategies are considered to be an essential tool to the success of organizations and institutions. It lies principally in the integration of a collection of precious tangible and intangible resources at organizations discarding. For organizations to be able to change short-run competitive advantage to a more flexible and reliable competitive advantage, resource-based strategies are considered to the solution. The resources are integrated with the transformation process need to be heterogeneous in nature, and these resources should not be perfectly mobile. This paper aims at establishing and supporting the argument that strategies that are not resource-based are not likely to succeed. This will be achieved through inclusion of various understanding and analysis connected to resource-based strategies, and the importance of resource-based strategies. In order to build an evidence-based counterargument at the end of the paper, the limitations linked to resource-based strategies to the success of business organization. A concrete conclusion will be drawn regarding the effectiveness and efficiency of resource-based strategies to the success and proficiency of organizations and institutions. Lastly, appropriate recommendations on the applicability of the resource-based strategies will be fostered to enable organizations improve their operational and decision strategies based on the resources available. Resource-Based Strategies Analysis Success and proficiency in business organization are determined by a number of factors, and these are with inclusion of the financial position of the organization, the internal and external environment, and more significantly, the management of the organization. The management integrates various operational organs and professionals who are involved in complex decision-making processes, which had an enormous impact on the performance of the entire organization. The major objective of a for-profit organization is to maximize profit and reduce expenses; increase output at low input (Cox, 2010: 82-84). For this to happen, the management need to devise effective decision strategies and operational strategies, which consequently aid in improving the working within and around the organization, thus enhancing performance. Resource-based operational and decision strategies are also crucial in a determination of the effectiveness and efficiency of the decisions that firms integrate with their operations. This is because they help in appropriate allocation of resources depending on the urgency and availability. The organizations need to identify the organizations potential and reliable key resources. This enables the decision-makers to make operational decisions that are based on the available resources, helping them to reduce costs and increase the outputs. The management also needs to evaluate whether the resources available are valuable, rare, inimitable or non-substitutable. For effectiveness to be attained, organizations need to take care for and defend the resources that are valuable and those that are non-substitutable as a way of improving the performance of the organization (Hand & Plowman, 1992: 25). Most organizations fail to recognize the effects of the strategies that they employ in reducing cost in their operations, and this consequently affects other areas of operations indirectly. Some of other areas affected include the stakeholders like consumers, suppliers, and more importantly, the quality of services and products offered by the organizations. Resource-based strategies integrate approaches, techniques and moves that lower the cost of production. The resource-based strategies maintain high quality of the goods and services offered by the organization, the quantity of production and the rate of production of the products offered by the organization. However, some of these strategies or operational moves have direct negative impacts to the general performance of the organization. Thus, consideration needs to be made in ensuring that the resource-based business strategies do not alter the normal functioning of the organization negatively. Total Quality Management Strategy is one of the core resource-based strategies that determine the performance of an organization. It is understood to be a tool that describes the approach that an organization intends to employ to satisfy the customers needs depending on the available resources. It requires that all members of the organization participate in improvement processes that are directed towards the products, services and the organizational culture that is integrated with the organization. With the understanding of the roles and the functioning of the quality management (Hankes, 1993: 28-33), we notice that in case many efforts are laid upon reducing the costs made. Some of these costs are made while lowering the expenses that are made towards maintenance and sustainability of quality in an organization, thus the outcomes are mostly negative to the organization and the environment affected by the operations, activities and practices of the business. The quality movements and developments in business organization need not to overlook at cost reduction as in case of other aspects and operational tools of an organization. This is with inclusion of reasons such as reduction of the quantities produced, lowering of the quality of the products and services produced, and consequently, help in reduction of the profits attained by an organization (Projogo & McDermott 2005: 1101-1122). According to the theory of culture-specific total quality management by Carlos Noronha, the ability to produce services and products that are of high quality is facilitated by the willingness and potential of an organization to hire employees who are trained. Additionally, it is determined by the ability to include personnel that is knowledgeable and experienced in specific areas of specialization, and purchasing of machines and technologies that are up to date and effective. Such working body and tools require a large amount of operational cost, and any attempt to lower the cost leads to the reduction of quality and rate of performance. Resource-based strategies ensure that organizations hire professionals depending on the available resources in the organization, and the benefits linked to implementation of the operational strategies devised. Therefore, it is the obligation of the management to strategize on specific operational approaches that will sustain high quality to the services and products offered by the organization. The situation is achieved by consideration of quality movements and developments such as the total quality management, and evaluating the appropriate cost management approaches, if any, that will not affect the quality of products or services offered. It is thus, essential to note that organizations needs to employ resource-based strategies, data and effective communications to be at a position of incorporating quality discipline into culture and practices of the respective organizations (Barney, 2001: 41-56). Discussed below are some of the reasons why quality movements, developments and operations in an organization need to have strong focus or concentration on resource-based strategies as a way of improving performance: Customer Focused- The major aim or objective of any organization is to satisfy the needs of the consumers through provision of quality services and products at timely manner. This is supported by the observation that quality movements and developments are customer oriented, in the sense that they understand that for increased sales to be made, and to capture and sustain customers, they need to ensure that the quality of the products and services that they offer is high (Conner, 1991: 121-154). The leaders therefore, strategize on approaches that are resource-based as a way of ensuring they include minimum efforts in attainment of the goal. The customers ultimately determines the standards of quality, and this is to the perception that irrespective of the moves that organizations integrate in their operations such as training employees and upgrading the operational technologies, it is the end consumers who determine whether the efforts are significant or not. Thus, the quality movements and developments aim at reducing operational cost and at capturing and buying customers trust as far as quality of the products and services the organization offers is concerned. It is through integration of resource-based strategies that organizations are able to attain quality that is desired by the consumers. Total Employee Involvement- For success to be obtained in any business organization, there must be total employee involvement and commitment. Human resource management, quality movements and developments take it to be their obligation to ensure that they consider the availability of resources before making decisions. It is also the responsibility of the entire managerial body to ensure that all employees understand the purpose of considering issues related to resource availability and utilization when making decisions of improving quality (Conner & Prahalad, 1996: 477-501). Employees need to comprehend with the moves that directed towards the attainment of the goal. Management needs to consider approaches that reduce the operational cost, and this is possible through integration of resource-based strategies in decision-making. Most of the quality movements and developments integrate techniques that buy employees trust, commitment and dedication in all activities that they engage in, but they achieve this through application of the resource-based strategies. Additionally, all employees need to work with the aim of attaining mutual goals. Process-Centered- Process thinking is considered to be the major focus of production, Processing and total quality management, which is a line of quality movements and developments. Much effort are laid upon on the moves that help in ensuring all parties involved in the improvement of the performance of the organization understand the strategies that are effective in devising and execution of process-centered operational tool. This is only achieved if more concentration is laid on the issues of reducing cost as it is evident in most of the departments in an organization, and it is through the application of resource-based strategies that this is achieved. Integrated Systems- It is of the essence to note that the quality performance is attained through integration of several and differing operational systems in an organization. It is therefore, difficult to consider all aspects that bring about reduction in operational cost, and at the same time produce quality services and products. Organizations need to evaluate the critical parts of management of quality and integrate strategic and systematic approaches that are essential in the attainment of the organizations vision, mission and goals. This incorporates formulation of a strategic plan that values and includes quality as a core and the fundamental component. Organizations and institutions need to consider and apply the resource-based strategies because they help in the determination of the future of the organization after utilization of various resources. Other reasons why resource-based strategies are essential and beneficial in the management of resources and personnel include the need to reduce the operational costs. The need for continual improvement, fact-based decision-making and communication approaches integrated with the normal functioning of organizations also triggers managements to integrate the resource-based strategies in their operations. Resource-based strategies help all departments of an organization, ranging from the production department, the processing department, distribution and marketing and sales department to improve their performance through reduction of costs (Grant, 1991: 114-135). It has been observed that quality management and quality implementation are fundamental aspects to the general performance of the firm, and they are attained through application of resource-based strategies. The resource-based strategies also aid in the establishment of organizational tools that are evaluated and integrated with the operations of firms to maintain and sustain effective sales flow. These resource-based strategies, also leads to improvement of the performance of an organization with minimal consideration on the cost reduction strategies. Irrespective of the benefits that are associated withan application of the resource-based strategies to the performance, there are various issues that are negatively influenced by these strategies {"status":"TOOLBAR_READY","toolbarId":220187224}. Quality of the services and products offered by an organization is affected in situations where the resources available are not valuable and sufficient. The main focus of the resource-based strategies is to reduce the operational cost, but for quality to be attained, resources need to be spent. Sometimes, the operational costs are greatly elevated following the attempt to improve the quality and enhance performance. Thus, although resource-based strategies application in organizations helps in the improvement of performance of the organizations, care and caution needs to be taken when making operational and decision strategies based on resource-based strategies. Conclusion Various issues contribute to the performance of an organization, with the decision and operational strategies taking the most critical and important functions that if not well considered contribute to the failure of an organization. The nature of activities and operations in an organization also differs, and their effectiveness and efficiency is determined by the contribution of the individual workers, their expertise, skills and knowledge. More importantly, the contribution and support that an organization offers to the departments and other sectors in the organization significantly aid in triggering the success on the firm. It should be noted that the major aim of any business organization is to maximize profits and at the same time meet the principles of corporate social responsibility. Such a situation is achieved through integration of strategies and measures that reduce the cost of operation, and consequently maximize the output of the organization. It is the obligation of the management of an organization to consider various elements that are affected by application of the resource-based strategies in the operations of the organization. Resource-based strategies are solutions to the operational and decision challenges that management of organizations encounters in running their operations. These strategies positively aid in the attainment of success within the organizations as decisions are made depending on the available resources, and this reduces costs and debts linked to poor planning. References Barney, J.B. 2001. Is the Resource-Based Theory a Useful Perspective for Strategic Management Research? Yes. Academy of Management Review; 26, (1), pp. 41–56. Conner, K.R. & Prahalad, C.K. 1996. A Resource-Based Theory of the Firm: Knowledge versus Opportunism. Organization Science; 7, (5), pp. 477–501. Conner, K.R. 1991. A Historical Comparison of Resource-Based View and Five Schools of Thought within Industrial Organization Economics: Do We Have a New Theory of the Firm? Journal of Management; 17, (1), pp. 121–154. Cox, B. 2010. The Role of the Management Accountant in Quality Costing. Quality Assurance, pp. 82-84 Grant, R.M. 1991. The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review; 33, (3), pp. 114–135. Hand, M. & Plowman, B. 1992. Quality Management Handbook. London: CIMA Publications , p. 25 Hankes, J. 1993. Great Expectations. Management accounting (UK). 28-33 Projogo, D. I. & McDermott, C. M. 2005. The Relationship Between Total Quality Management Practices and Organizational Culture. International Journal of Operations and Production Management, Vol 25(11): 1101-1122 Read More