The primary value of your business plan is to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects. A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we make it easy for you by providing a format to build your plan as you progress through this course. Business plans can vary enormously.
Internal analysis helps us understand the organizational capability which influence the evolution of successful strategies. Many of the issues of strategic development are concerned with changing strategic capability better to fit a changing environment.
However, looking at strategic development from a different perspective i. Internal capabilities and process execution at times allow firms to gain competitive edge over competitors even with relatively lesser resources and lesser advantageous position.
Strategic thinkers explaining the RBV suggest that the organizations are collections of tangible and intangible assets combined with capabilities to use those assets. The factors of production used by firms in providing its customers with valuable goods and services are called assets.
These assets are of two types- tangible assets and intangible assets. Any physical means a firm uses to provide value to its customers form its tangible assets. Similarly, intangible assets are equally valuable for firms but their physical presence cannot be felt or seen.
For example, a brand name is a very important resource for any organization even though it is intangible. Few examples of Tangible and Intangible Assets: In order to take full advantage of its assets the organization needs to develop skills, as experience suggests that with similar assets two different firms may add value of different amount for themselves.
This difference can only be explained by the differences these organizations carry their capabilities in utilizing these assets.
For example, in a sector like management education, in a typical segment you will find institutions more or less with similar resources and infrastructure, however, the quality of their output in terms of new professionals for business may be starkly different for different institutions.
This is greatly reflected in the type of organizations that pick them up for employment and the kind of job responsibilities they are offered.
This difference in output can be explained on account of the skills which these institutions carry with themselves. This position has been found true in case of many Indian companies as well as the multinational corporations.
Competencies Most simply put, it refers to the ability to perform. However, in order to have a better understanding of the concept, you need to understand first the resources, which are available to an organization and how they differentiate themselves as competencies or core competencies.
Strategic Importance of Resources: Few examples may be buildings, machinery or operational capacity.
However, the specific condition and capability of each resource determines their usefulness. Knowledge and skill of people together prove to be a great asset.
Financial Resources of an organization may lie in capital, cash, debtors and creditors and providers of money. Intangible resources include the knowledge that has been captured in patents, brands, business systems and relationships with associates. In knowledge economy intellectual capital is considered as a major asset of many organizations.
Figure-I Shows a relationship between the resources, competencies and the competitive advantage: This becomes inevitable because of the competitors and sometimes the new entrants.
We can think of many industries in India like automobile, durable goods, telecom etc.
Just think of a big music stores like Planet M or the ones from RPG group, the scale and range of collection of music provides uniqueness to these stores as compared to any of the traditional music shop.
Some organizations have patented products or services that give them advantage for some service organizations, unique resources may be particularly the people working in that organization. The difference in performance between organisations in the same market is rarely explainable by differences in their resource base, since resources can usually be imitated or traded.
An organization needs to achieve a threshold level of competence in all of the activities and processes. They create and sustain ability to meet the critical success factors of particular customer groups better than other provides ways that are difficult to imitate.
Again as put forward by the resource based view, a series of guidelines are discussed below, which you can use to asses what constitutes a valuable asset capability or competence.
This is a very basic test to understand its resource value. A resource that is easy to imitate is of little competitive advantage because it will be widely available from a variety of sources. Inimitability however does not last for long and at some point competition matches or even betters any offering.
Physical uniqueness, causal ambiguity or scale deterrence are few ways how organizations attempt doing this. Hyper competitive market conditions have a tendency to make competitive advantage less and less sustainable.
Durability in such situations become a more stringent test for valuing resources, capabilities and competencies. Competencies are valuable only if they manifest themselves as competitive advantages and this means that they are superior to those held by rivals.
Being good is not enough and a firm must be better than its competitor.The factors of production used by firms in providing its customers with valuable goods and services are called grupobittia.com assets are of two types- tangible assets and intangible assets.
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A participatory approach was adopted involving a series of stakeholder consultation, validation, and recalibration workshops participated in by representatives from the private sector, local government units (LGUs), national.
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Business: Mushroom Farming Industry: Agriculture (Mushroom Farm Business plan in Nigeria) PATILAD mushroom farm is a standard mushroom farm that makes use of modern technology solution to produce healthy, fresh, and high yielding mushrooms.