Resource-Based View of the Firm:
- Two perspectives
- The internal analysis of phenomena within a company
- An external analysis of the industry and its competitive environment
- Three key types of resources
- Tangible resources
- Intangible resources
- Organizational capabilities
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To further answer the question of how to support a competitive strategy, it’s important to consider the concept of the resource-based view of the firm, and the three key types of resources: tangible resources, intangible resources, and organizational capabilities.
McDonald’s
Q2. Internal Analysis, cont.
McDonald’s has tangible & intangible internal resources:
- Financial – McDonald’s appears to have managed its finances well, currently has adequate cash on hand
- Physical – has significant physical assets in the restaurants
- Technological – has kept up with current technology
- Organizational – franchise model is a weakness unless strong quality controls are in place
- Human – training of staff is critical, could be a problem
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McDonald’s profile might look like this:
McDonald’s
Q2. Internal Analysis, cont.
McDonald’s has other intangible internal resources:
- Innovation – this is a current strength, but needs to be managed in the right direction – choice of innovation is key
- Reputation – McDonald’s brand is its most significant strength – this should be protected at all costs
- Organizational Capabilities – Thompson’s leadership, willingness to extend Cantalupo’s and Skinner’s vision of excitement to all stakeholders is key
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