Porter’s 5 Forces

A Strategic Management Tool

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 VRIO Framework
A Strategic Management Tool
 V R I N

J.B Barney
1991 - ‘Firm’s Resources and
Sustained Competitive
Advantage’

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Resources + Capabilities
= Competitive Advantage

V – Value V – Value

R – Rareness R – Rareness

I – Imitability I – Imitability

N – Non-Substitutable O - Organization
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Barney and Hesterly (2006) describe the VRIO framework as a good tool to
examine the internal environment of a firm.
4 Questions
Question of Question of Question of Question of
Value Rarity Imitability Organization
• Does a resource enable a firm to exploit an
environmental opportunity, and/or
neutralize an environmental threat?
• Is a resource currently controlled by only a
small number of competing firms? Are the
resources rare?
• Do firms without a resource face a cost
disadvantage in obtaining or developing it? Is
what a firm is doing difficult to imitate?
• Does a resource enable a firm to exploit an
environmental opportunity, and/or neutralize
an environmental threat?
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What types of resources shall result in competitive advantage?

Tangible resources Intangible resources Organizational capability

• Financial • Human • Optimum Combination of

Tangible and Intangible
resources
• Physical • Innovation and
Creativity
• Production Processes
• Technological
• Reputation

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Large image

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 NEED GAP ANALYSIS

A gap analysis is an examination and assessment of your current

performance for the purpose of identifying the differences
between your current state of business and where you’d like to
be.

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You will answer three questions, while using Need Gap Analysis

• Where are we now?

• Where do we wish we were?

• How are we going to close

the gap?

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 LEVELS OF APPLICATION

• ORGANIZATION LEVEL

• BUSINESS DIRECTION

• BUSINESS PROCESSES

• INFORMATION TECHNOLOGY

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 Steps in the Need Gap Analysis

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 STEP 1: Statement of General Area

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 Step 2: Identify Specific Improvement Areas

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 Step 3: Determine Targets

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 Step 4: Determine Current State

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 Step 5: Determine Action Steps

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Integration of the Video Response App FlipGrid in the Business Writing
Classroom
ByTerrill Reid McLain

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 DEMOGRAPHIC DIVIDEND
The growth in an economy that is the result of a change in the age structure of a
country’s population. The change in age structure is typically brought on by a decline in
fertility and mortality rates.

According to United Nations Population Fund (UNFPA), demographic dividend means,

"the economic growth potential that can result from shifts in a population’s age
structure, mainly when the share of the working-age population (15 to 64) is larger than
the non-working-age share of the population (14 and younger, and 65 and older)".

Demographic Dividend Opportunity in India.

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 What are the demographics factors?

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 Age: Under 12, 12 to 17, 18 to 24, 25 to 34... (these typically go on at 10-
year increments)
Sex (gender): Male, female, other nonbinary identities
Income level: Under $15,000, $15,000 to $24,999, $25,000 to $34,999...
(distribution brackets will vary based on who is being sampled)
Race: Caucasian, African American, American Indian, Latino, Asian,
Pacific islander
Ethnicity: Jewish, Arab, Irish, Dutch, Russian, Swedish
Employment status: Employed, unemployed, self-employed, retired,
disabled
Education level: High school, some college, undergraduate degree,
graduate degree

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Number of children: None, 1 to 2, 3 to 5, 5 or more...
Living status: Own, rent, lease, other
Location (geographical data): Postal code, city, state, country
Political affiliation: Republican, Democrat, independent
Marital status: Single, married, separated, widowed
Religious affiliation: Muslim, Buddhist, Hindi, Catholic, Jewish
Social class: Lower class, middle class, upper class
Nationality: American, Mexican, German, Swiss, Finnish, French

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 What are the benefits of demographic dividend?

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 What are the disadvantages of demographic dividend?

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 Economic Environment

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 Economic System
An economic system is a means by which societies or governments
organize and distribute available resources, services, and goods across a
geographic region or country. Economic systems regulate the factors of
production, including land, capital, labor, and physical resources. An
economic system encompasses many institutions, agencies, entities,
decision-making processes, and patterns of consumption that comprise the
economic structure of a given community.

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 Types of Economic System

Capitalist/Free Market

Socialist/Command

Mixed

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Command/Planned Economy

• Resources are allocated by the command mechanism (i.e. the

government).
• All decisions about what and how much and who should produce
goods/services are taken by government.
• Only exist in a dictatorship government.
• Consumers had to queue to buy goods, whose prices were fixed
by governments, resulting in shortages and poor quality goods.
• Command economies broke down.
• Still exist: China, North Korea, Cuba.

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 Market Economy

• Resources are allocated by the price mechanism and market

forces.
• Allocates scarce resources among competing uses.
• Market could be anything from a street market, to buying goods
and services online, to markets such as eBay!
• One example would be labour, exchanged for cash, as different
prices.

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 Autarky
Autarky is the term used to describe a country or economy that
operates independently. Autarky, in its most basic sense, means
“self-sufficient,” though it’s almost always used in correlation
with a political or economic system, meaning that the entity –
whatever it is – can operate and exist free of outside influence,
support, or trade.

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 New Economic Policy 1991

• Liberalisation

• Globalization

• Privatization

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