Reply to Resources and Capabilities Discussion 1
Q – Please read the discussio
Reply to Resources and Capabilities Discussion 1
Q – Please read the discussion below and prepare a Reply to this discussion post with comments that further and advance the discussion topic.
Please provide the references you used.
Ensure zero plagiarism.
Word limit: 250 words
Discussion
Resources and Capabilities
In my opinion, neither the external market nor the internal resource and capabilities should be the sole basis for formulating a strategy, both should be considered to formulate a realistic strategy and tackle the challenges that faces the company. One of the best tools for establishing a strategy is the strength, weaknesses, opportunities, and threats (SWOT) analysis that we touch on in our previous discussions. The strength and weaknesses is an internal analysis to determine the resources and capabilities of the company, while the opportunities and threats looks at the external markets and how to gain an advantage of the market (Gurl, 2017). a successful strategy considers both internal and external factors, striking a balance between leveraging your strengths and adapting to market opportunities and challenges.
An example of a Saudi company that based their strategy on the SWOT analysis is the National Company for Mechanical Systems (NCMS) in the defence sector. Prior to establishing their strategy, the company wants to link their goals to Saudi Vision 2030, which states that 50% of all defence spending has to be done locally (VRO, n.d.). From there, the company performed the SWOT analysis starting with strength, their strength is that most of the staff was Saudi and is gaining a unique experience in the defence sector, as well as advanced manufacturing capabilities, while their weakensses are lack of ventren experienced personnel in the field and a lack of proper supply chains. Looking externally, there is an major opportunity to establish the company as a for front of the Saudi defence sector and gain major manufacturing contracts with the armed forces, while the threats are fierce competition from internaltional players with decades of experience.
Given the SWOT analysis above NCMS has set forth in developing stronger supply chains with key raw material supplier and hiring the top fresh graduates from the top universities to work in a unique sector in Saudi Arabia. In the same time, NCMS has worked on focusing their resources in high tech vision systems and precision machining to gain a competative advantage in the field. The advantages of this approach is it gives a clear insight on what is the company is good at, which is precision machining and few local players in the field. However, the disadvatages are weaknesses mentioned above are not handled properly in their strategy, the company is not looking to hire vetren experienced staff which leaders to diminishing gains in training the new staff.
All in all, a good strategy starts from its base, using a good analysis tool can go along way in building a strong, flexible strategy and it is important to be ablle to reevaluate the strategy in a set intervals and shift directions if needed. A good strategy is not a static document; it’s a living framework that guides your actions and evolves with your needs and the changing landscape (Jenčo & Lysá, 2018). References
Gurl, E. (2017). SWOT analysis: A theoretical review.
Vision Realization Office (n.d.). https://www.vision2030.gov.sa/media/rc0b5oy1/saudi_vision203.pdf
Jenčo, M., & Lysá, Ľ. (2018). Evaluation of a work team strategy by using the SWOT analysis. Calitatea, 19(165), 39-42.