The strategic management process is of utmost importance for any organization, considering that it allows the company to adjust to changes in the market or tackle pressing issues. Luckily, managers can opt for employing many tools designed to analyze different sides of business running and find solutions for any problems in the operations if they are present. That is why it seems that the most critical tool to use at first for evaluating the strategy of Sun City Boards is VRIO analysis. As a matter of fact, this examination gives a lot of information to work with when further investigating the setbacks in other company operations.
To begin with, VRIO analysis is mainly designed to evaluate the organization’s competitive advantage. In other words, it assesses the resource or capability of the company and analyzes using four criteria (Jurevicius para 2; Opinaldo para 3). In this examination, V stands for the value of the assets, while R stands for their rarity (Usmani para 9). In fact, the letter I is short for the inimitability of the resource and O – for its organization (Usmani para 9). Sun City Boards can effectively draw conclusions on the competitive advantage of their asset or capability using this tool.
The results of the VRIO analysis give information for further research of the company’s strategy for determining its strengths, threats, and opportunities for advancement. Naturally, since the VRIO examination focuses on the evaluation of assets only, it cannot determine the weaknesses of Sun City Boards in the market in terms of its operational strategy. Nor can it assess the bargaining power of buyers or suppliers due to its narrow scope of analysis. Still, the VRIO framework is beneficial for any organization, including Cun City Boards, since it defines the quality of its resources or capabilities.
Jurevicius, Ovidijus. “VRIO Framework Explained.” Strategic Management Insight, Web.
Opinaldo, Norlyn. VRIO Analysis: Framework, Definition, and Templates.
Usmani, Fahad. “VRIO framework: Examples, pros and cons.” Parsadi.