Discuss about the VRIO Framework Management Research Review.
The report helps in analysis of the key performance indicators of Pascoes Jewellery store along with VRIO and value chain analysis of the respective company as well. Pascoes was established in the year 1906 by James Pascoes who was a fully qualified jeweller wherein they gradually expanded the store from Auckland to more than 38 stores nationwide ("Home - Pascoes The Jewellers", 2018). One of the strengths of the respective organization was to make the entire shopping experience accessible to the customers by providing them the scope of online shopping. The techniques of sales helped in allowing the employees in maximising the sale technique and this helps in increasing the sales of the company as well. Pascoes Jewellers is one of the largest jewellers in New Zealand and they have used the different sales techniques that helped in analysing the strengths and weaknesses of the respective company as this helps the company in reducing the issues effectually.
The tangible resources are defined as the physical kind of assets that can be quantified and the most essential tangible kind of resource of Pascoes Jewellery is the apparatus that is used for assembling and production of the jewellery. Furthermore, the intangible kind of resources are the ones that cannot be touched, however it is helpful in development of the different kind of core competencies that cannot be gained by the different competitors in the entire market. The main intangible kind of resources used by Pascoes Jewellers is the training of the salesperson in their company as this helps in gaining competitive advantage.
Proper capability is essential in nature as these are the resources that is essential in nature to achieve the specific kind of task in an effectual manner. Proper capability is essential in nature as this helps Pascoes in making the jewellery robust in nature and liked by the customers as well. The other capability resources that is required to be gained by Pascoes is the motivation for the different employees and staffs who are working in the organization.
Proper rewards and incentives is required to be provided to employees as this helps the company in improving the different activities performed by the sales employees in the organization as well. Pascoes Jewellery store has to utilize the different kind of knowledge and skills as to make the jewellery items available to the customers that will last longer.
The sales technique has helped Pascoes in gaining competitive advantage over the other jewellers and gained core competency as well. The implementation of the different sales technique was expensive in nature; however, it is the only source for the company to gain more customers base for their company. The other core competency that is required to be adopted by the company is distribution network that is international in nature.
With the implementation of international distribution framework, it is easier for Pascoes to sell their products and services to the customers all over the world that is not available to all the other competitors in the market. They have tried to include the takeover of the other jewellery company that has helped them in exploiting the different kind of opportunities of the other jewellers.
VRIO Framework Analysis
The entire VRIO analysis helps in looking at the bundle of resources that are costly and rare in nature as well. When the resources of the entire bundle help in creating value and they are rare in nature, this will help in gaining sustainable competitive advantage that will be created effectively. The VRIO framework helps in analysing the different questions along with analysis of the competencies.
Value is one of the element of VRIO framework wherein this will help in analysing the question whether the organization helps in providing value to customers? Pascoes Jewellery Store try to manufacture different kind of jewelleries that helps them in gaining sustainable competitive advantage by delivering values to the customers (Lasserre, 2017).
Rarity is wherein it is checked whether the competency possessed by the competitors appropriately. Pascoes do not have any kind of rare capabilities wherein the different resources used by them is valuable but it is common in other retail stores as well that includes quality-oriented staffs along with quality products. The sales technique used by Pascoes is rare in nature and this is the unique feature of Pascoes as well. (Welford, 2016)
Imitation is the other element wherein it is checked whether Pascoes has capability cost to imitate effectively. The adoption of different sales technique has helped Pascoes in competing with the competitors and the competitors are not being able to adopt such strategies effectively (Pearlson, Saunders & Galletta, 2016).
Organization is the last element wherein it is checked whether the organization has organized themselves to exploit the different competencies (Hill, Jones & Schilling 2014). With the implementation of competencies, proper training of the staffs has been done by Pascoes and this helped them in improving their day to day sales. The different departments such as marketing, sales along with human resources systems revolve around the exploitation of the competencies of other companies (Rothaermel, 2015).
The individuals can use the different ideals of VRIO framework on a day to day basis. The framework is used by different individuals and organizations to take the risks and succeed in different kind of tasks that is performed by the organization (Frynas & Mellahi, 2015).
Value Chain Analysis
With the help of the value chain analysis, the inbound and outbound logistics has been analysed in an effectual manner. Proper infrastructure of the firm along with technological developments has helped the company in relating to the margin that has to be achieved by them effectively (Bromiley et al., 2015).
Corporate culture is the ideas along with beliefs of the company that will help in understanding the affect of the culture on the business and the behaviour of the employees as well. There are different kind of layers wherein few are visible to the public and some of them are only visible to the respective organization (Chatzoglou et al., 2017). This kind of analysis can be best described with the help of iceberg analogy wherein the behaviours’ along with symbols of the organization that helps in symbolizing the behaviour that is observable in nature (Slack, 2015).
Both ideas along with beliefs of the company are parts of the respective analogy of Pascoes. The culture of Pascoes is best described as the selling technique of Pascoes that includes the different departments such as recruitment, Information Technology as this helps in maximising the rates of conversion. With the motivational analysis, it has helped the employees of Pascoes in gaining motivation and this has helped in enhancing the sales figure of the company as well (Gereffi & Fernandez-Stark, 2016).
Strategic Issues of Pascoes
There can be different kind of strategic issues that can be faced by the different organizations in different kinds of manner. However, such strategic issues have to be analysed and it is required to be solved with the help of implementation of positive kind of strategies. There were different issues that has been faced by Pascoes that included the following:
The first issues faced by Pascoes is regarding achieving the proper product mix into the correct kind of locations. Furthermore, they are the international company in the entire world, they require to maintain a proper and accurate system that will help them in keeping a track of the different items wherein they are selling and the places can be located and tracked as well. When the right kind of things are not being delivered to the right places, this can cause huge pressure on the company along with the employees of the company as well and this can lead to loss to the entire company as well (Galliers & Leidner, 2014).
The other issue that is faced by the respective company named Pascoes Jewellery Company is relating to the maintaining the strong kind of customer base. The company needs to rely on the different kind of sales technique in an effectual manner or else this will be resulting into gaining fewer number of customers in the entire market as well. The technology that has to be adopted by the company requires to be such that the customers can purchase products in an effectual manner according to their own opinions as this will help the company in resolving the different kind of strategic issues.
Therefore, it can be concluded that with the help of the internal environment analysis of the entire company, proper strategies have been applied to improve the issues and solve them effectually. With the help of the analysis of the weaknesses and strengths, this has helped the company in identifying the issues and solve them in an effectual manner. The importance of the strengths and weaknesses has helped in resolving the different strategic issues and gain competitive advantage in the market as well. The VRIO framework and value chain analysis has helped the company Pascoes Jewellery store in understanding the performance of competitors as this helped them in including strategies that saved them from severe kind of losses as well.
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Chatzoglou, P. D., Chatzoudes, D., Sarigiannidis, L., & Theriou, G. (2017). The role of firm-specific factors in the strategy-performance relationship: revisiting the resource-based view of the firm and the VRIO framework. Management Research Review, (just-accepted), 00-00.
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