Why is it important to study the internal resources, capabilities, and activities of organizations? What insights can be gained?
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BUS 510: Discussion Question 3
Q1. Why is it important to study the internal resources, capabilities, and activities of organizations? What insights can be gained?
An internal analysis of an organization’s resources, capabilities, and activities is important because it examines its strengths and weaknesses to establish its competitive viability in the market. A firm’s internal analysis integrates measures that provide practical information necessary for strategic planning to facilitate business sustainability and growth (Rothaermel, 2016). Determining a company’s strength and competency is an essential measure in the internal analysis. For instance, a strong and capable organization utilizes the latest technology and equipment in all its activities and operations, and it achieves financial objectives and strategic planning goals. Furthermore, an enterprise with strong competency has a strong brand identity that has been progressively built upon professionalism, capabilities, and effective organizational resources (David & David, 2016). In this regard, strategic managers can use this information to continue building on the organizational competencies and improve their weak areas to gain a competitive edge in the market. Besides, other organizations can use this information to learn from the company’s shortcomings and strengths for their benefit.
Q2. Domino’s Pizza was 50 years old in 2010. Does the firm focus on the economic, accounting, or shareholder perspective in the describing its competitive advantage in the profile. Defend/explain your answer.
Dominos focuses on the shareholder perspective in reporting its competitive advantage. According to the company’s profile, Dominos gives dividends to its shareholders every year (“Investor Relations | Domino’s Pizza”, 2020). This information is on their profile because the management team knows that their shareholders prefer to buy shares using returns on their dividends. Furthermore, the Dominos management team understands that only a few pizza companies count their customers as key stakeholders because most of them are privately owned. Therefore, Dominos uses shareholder perspective to differentiate itself from its competitors, hence gaining a competitive edge in the market (“Investor Relations | Domino’s Pizza”, 2020). Furthermore, the company’s profile indicates that it is the largest pizza company in the world based on the number of sales it makes compared to other pizza companies (“Investor Relations | Domino’s Pizza”, 2020). This makes Dominos the most dominating company in the industry; therefore, investors are more likely to invest in the company because of its revenue, which increases its potential to make them more money.
References
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach, concepts and cases. Florence: Pearson–Prentice Hall.
Investor Relations | Domino’s Pizza. Domino’s Pizza. (2020). Retrieved 4 November 2020, from https://ir.dominos.com/.
Rothaermel, F. T. (2016). Strategic management: Concepts and cases. Place of publication not identified: Mcgraw-Hill Inc, Us.
| Pages: 1, Double Spaced Sources: 3 | Order type: Essay Subject: Business and Management Academic level: Master Style: APA Language: English (U.S.) |
Order Description
Answer each question individually. Example: Question 1 followed by the answer then Question 2 followed by the answer. Each question should be 150-200 words. Q1. Why is it important to study the internal resources, capabilities, and activities of organizations? What insights can be gained? Q2. Domino’s Pizza was 50 years old in 2010. Visit the company’s business-related website (www.dominosbiz.com) and read the company profile under the “Investors” tab. Does the firm focus on the economic, accounting, or shareholder perspective in the describing its competitive advantage in the profile. Defend/explain your answer.
