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28 April 2022
Casa Better World Fashion
Part One
Main Difference between a Penrosian View on Strategy and Porter’s Approach
Porter’s approaches to strategies focus on businesses’ external environments, mainly through conducting the five forces evaluation of the competitors before companies develop appropriate actions. Porter’s model believes in the business’s development of proper competencies to follow the right strategies that promote sustainable development (Andriani et al., 14). The core competencies model focuses on businesses’ most recent competencies that enable them to compete fairly and effectively by assuming leverage organizations that are not easy to change. Practical internal and external analyses are crucial in developing business strategies despite their differences in starting points. Businesses have to choose whether to equip themselves with relevant strategies according to their competencies. The Penrosian View on strategy explains organizations’ development based on the theory of evolution that promotes effective identification of their potential to develop strategies that focus on growth initiatives as the core objectives based on different agents’ abilities. Despite being misinterpreted, Penrose made significant contributions to resource-based thinking initiatives targeting business growth (Andriani et al., 17). Her primary aim was not to provide valuable strategies that managers would develop to create sustainable business income streams in their industries. Instead, her main message focused on business growth initiatives, whereby effective strategic management initiatives focus on all critical aspects of proper management initiatives meant to improve strategic management theories and practices.
Characteristics of the Value Chain and its Significance in Understanding Strategy
The paramount significance of a value chain is increasing businesses’ efficiencies to favor the utilization of minimum costs possible to deliver the best value. Value chains are crucial in describing different activities essential for developing suitable products and services through various production phases from their conception. Businesses focus on effective utilization of the input producer services and relevant physical transformations (Al-Meslemi 92). Businesses’ operational thinking and literature rely on value and supply chains whereby suppliers make significant inputs that determine final products and services’ structures and qualities. Value chains also describe the upstream and downstream activities involved in the numerous reporting companies’ operations.
Part Two
Strategies without Resource-bases are Unlikely to Succeed
Resources are crucial in strategic implementation by enabling companies to set clear visions and goals while allocating enough resources to cater to effective achievement and fulfillment of significant project needs. Resource-based strategies are flexible for different organizations’ sizes, save costs, boost productivity, enhance time management, boost staff morale, predict future projects, influence proper strategic planning, promote better management of teams and eliminate possible risks (Al-Meslemi 94). The tasks involved in large organizations are different from small organizations because their operations influence them to have many projects at a time. Hence, they depend on the availability of adequate resources that have to be allocated effectively to guide project managers’ plans in assigning resources that influence better management strategies. When developing business strategies, proper allocation of resources enables organizations to save on costs because no money gets wasted. Managers have an easy time assessing their workers’ performances and impacts on the projects hence the easy allocation of tasks based on the availability of resources and individuals’ skills (Tiwary & Bhuvan 13). Availability of resources is crucial in enhancing productivity whereby individuals finish projects and tasks before deadlines limiting them from compromising qualities and improving productivity. They do not have to waste a lot of time, effort, and labor by focusing on irrelevant activities that do not contribute to the targeted goals and objectives. Time management is crucial for successful strategic implementation as long as individuals understand the critical requirements of completing designed projects and tasks. Deficiency of resources contributes to time wastage because organizations spend a lot of time planning effective ways of utilizing the limited resources for all activities (Tiwary & Bhuvan 22). Proper allocation of resources also boosts staff morale in identifying the key strategies that would enable businesses to thrive in their investments towards completing projects rather than estimating. Workers’ self-confidence is essential in boosting their understanding of the developed strategies and their impacts on business success.
Significance of Porter’s Generic Strategies for Understanding Strategies
Porter’s generic strategy helps understand business strategies by guiding organizations to focus on the best initiatives that would favor their success outcomes. However, cutting costs is the most critical aspect of formulating business strategies. For instance, applying generic methods to all products and services involves minimum cost utilization but promotes significant competitive advantages towards creating and sustaining quality performance (Tiwary & Bhuvan 30). According to Porter, generic strategies are the same as cost leadership or differentiation initiatives that influence the development of desirable products and services that focus on specialized services in the niche market. Generic strategies enable businesses to gain competitive advantages that favor the growth of edges significant in getting sales from competitors. Companies should focus on; developing the best cost reduction initiatives that would favor their maximization of profits so long as they create average prices according to their industries (Tiwary & Bhuvan 29). Charging lower prices enables companies to increase their market share so long as they make reasonable profits from all sakes due to their reduced costs. Quality leadership influences successful cost leadership because it makes leaders focus on their industry or market prices to become successful while leaving themselves open to fair competition.
Part Three
Significance of Innovation in Strategic Management
Innovation enables the successful management of business strategies by allowing them to utilize appropriate technologies based on innovative concepts that reduce the chances of failure. If businesses cannot thrive in the ever-changing world, they are likely to experience significant challenges sustaining their strategies or developing new structures suitable for better outcomes.
Dynamic Capabilities Cannot be Bought Generally but Built.
Business operations require proper planning by allocating resources and utilizing available techniques and technologies to influence change outcomes. Most resources get scooped and reconfigured. Dynamic capabilities help measure business capacities in aligning and realigning suitable structures that favor growth. They have to be sensing and seizing to effectively explore any requirements involved in establishing sustainable outcomes (Tiwary & Bhuvan 33).
Part Four
Better World Fashion’s Best Products
Clothing products are the best from better world fashion due to their quality and affordability. They offer a wide range of trendy and fashionable clothes suitable for different genders and age groups at the best prices to gain competitive advantages (Ivan & Rana 6). The business also offers high-quality designer clothes, wedding apparel, and dinner outfits that promote individuals’ class and elegance.
How the Clothing Products Could Improve the Competitive Advantage if placed in Circular Economic Contexts
The best way of improving the competitive advantage of items like clothing is by branding them and reducing their costs. Effective branding of clothes involves designing them according to customers’ specifications and availing them of the best quality in their specific industries to boost customers’ loyalty which is a crucial competitive advantage, especially in the modern world with various trendy brands. Individuals like associating with refined products that make them look fashionable and presentable at work and at different events.
Works Cited
Al-Muslim, Yahya, et al. “Modeling Key Characteristics in the Value Chain of Additive Manufacturing.” Procedia CIRP, vol. 70, 2018, pp. 90-95.
Andriani, P., et al. “Unused services of a firm’s resources: A Penrosian view of shadow options.” Academy of Management Proceedings, vol. 2019, no. 1, 2019, p. 18684, doi:10.5465/ambpp.2019.18684abstract.
Ivang, Reimer, and M. B. Rana. “BETTER WORLD FASHION: CIRCULAR ECONOMY AND COMPETITIVE ADVANTAGE.” ResearchGate, 3 June 2019, www.researchgate.net/publication/333579289_BETTER_WORLD_FASHION_CIRCULAR_ECONOMY_AND_COMPETITIVE_ADVANTAGE.
Tiwary, Amit, and Bhuvan Unhelkar. “Business Strategies and Outcome-Driven Business Architecture.” Outcome-Driven Business Architecture, 2018, pp. 3-35.