Coursework Header Sheet 239077-25 Course BUSI1410
Coursework Header Sheet
239077-25
Course BUSI1410: Strategy & Transformation(MBA) Course School/Level B/PG
Coursework Portfolio Assessment Weight 40.00%
Tutor Y Kim Submission Deadline 05/03/2018
Coursework is receipted on the understanding that it is the student’s own work and that it has not,
in whole or part, been presented elsewhere for assessment. Where material has been used from
other sources it has been properly acknowledged in accordance with the University’s Regulations
regarding Cheating and Plagiarism.
001003122
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Resource based view strategy- Negative impact on Sony
Introduction
The assessment under consideration will be entailed on the discussion of the negative impacts
of the resource -based view strategy on the organization of Sony. This assessment will be
based on the identification of the causes and effects of the resource based view strategy on
the organization as well. In accordance to that, the assessment will be finding evidence along
with examples for supporting generalisation. Afterwards, the assessment will be making
contrasts , comparison and connection. In addition to that, distinction between the inferences
and facts will be provided further for clear comprehension of the reasons. Lastly, the
summary will be provided in the form of conclusion which will be summarising the crux of
the matter.
Resource based view strategy
Resource based view strategy is regarded as the management device for utilising the access of
the available amount of the strategic assets of the business. A dditionally, the RBV is based
over the idea that the efficient and effective implications of all th e significant resources which
the organization could assemble will be help in determining the organization’s competitive
advantage. (Barney,2007)
Discussion of the negative impacts of resource- based view strategy on Sony
The resource -based view strategy in the organization had been nearly for 20 years throughout
that time it had been subjected and taken up for considerate critiques (Yu, Chavez, Jacobs,
and Feng, 2017) . The organization undertaking the same strategy is reviewed and assessed
the principle criticism evident by the literature support as well therefore claimed from the
study of Yang, Colvin, and Wong, (2016) , they fall in to 8 categories. It can be noticed from
the analysis of the organization of Sony that the core message of res ource based view could
be capable of withstanding the critique from the five of the quite provided variables of
resource based view related when applicability and boundaries are specified adequately . In
addition to that, rest 3 critiques which could not be readily dismissed call towards the further
research and theorizing arise from the indeterminate nature of two of th e basic concepts of
RBV which value and resource are along with the narrow conception of the Sony’s
competitive advantage .
The industry of consumer electronics is changing rapidly and the competition is increased
effici ency factually goes concurrently with the innovation and creativity. Nonetheless, Sony
is found to be struggling for finding the balance among the drive for staying innovative as
well as cooperate, require not falling behind the competitive advantages within the core
markets. After implementing this strategy Sony must take strong stand whether it wants to
lead, follow or just stay still. For example; Sony faced recall of 9.6 mil lion Sony laptop
batteries which had been responsible for overheating and probably bursting in flames also
there are complaints with regards to consumers of Japan regarding PS3’s new system .
Identification of causes and effects of resource based view strat egy on Sony
and become intense since the product lines are moving closer altogether. In addition to that,
with the complacency setting in the firm of Sony, resources had been stretched too sparingly
and the creativity was made over complicated along with t hat managers are become less
demanding. Additionally, the case of Sony also questions either the productivity and
The resource base view’s lack of clarity in Sony with regards their core premise as well as its
lack of distinct boundaries impedes considerable debate. Provided by the theory’s lack of
particularity the hypothesis based and definition based logic can be i nvoked any time. In the
organization of Sony it can be argued from the perspective of Weishäupl, Yasasin, and
Schryen, (2015), resources are one of the key source of the competitive diversity .
Nevertheless, competitive diversity is reckoned to durable and systematic differences in
performance among the competitors ( Freiling, 2017). For example; the failure of Sony for
efficiently implementing the Kaizen or sustaining the efficient manufacturing structure for
ensuring that they possess high- end products seems to damage their strong brand along with
the reputation.
The causes of negative impacts of RBV in Sony are significantly due to two aspects. Initially ,
resource based view strategy alone could not deemed capturing the essence of competitive
advantage f or the organization of Sony. Resources based view provides no conceptualization
on how and why the organization of Sony instead of others accumulated the inimitable and
valuable resources, or else certainly what made such resources inimitable and valuable
( Yamazaki, 2016) . Thus, for sake of explaining the competitive advantage in Sony, resource
based view ought to incorporate the evolution on the period of time for the capabilities along
with the resources which form the fundamental competitive advantage.
Secondly, the other cause of the negative impact of RBV is that RBV ignores the external
components as well as deemed focusing on the internal elements only in Sony . It will affect
the long term success of the organization and capability to evaluate the ex ternalities.
Therefore, an inclusive model of strategic advantage ought to be adopted by the firm of Sony.
This model emphasise on adopting both the internal and external dimensions which is based
on the regular assessment for the strength of the organizat ion of Sony’s recent resources
along with the external dimensions which deemed oriented to the appraisal of the resources
provisions of the outsider, as such suppliers, customers and competitors etc.
Distinction between facts and inferences
In the light of the study of Paik, and Chang, (2014) , resource based view is self verifying .
Faturrohman (2018) also defined the competitive advantage as circumstance which adds
value to goods, services or business which is mainly established from the reso urces which has
additional valuable features . This reasoning can be adjudged logical and thus it can be
operationally validated for the organization of S ony. Various resource configurations could
be capable of generating the same value for the organization as well as therefore it can be
considered as competitive advantage; the position of product -oriented market is considered to
be immature within the explanation. The hypothesis also found to possess limited perspective
inferences. Nonetheless, Olson (2018) had provided counter arguments for the provided
points of critics .
Conclusion
So as to keep up a reasonable upper hand, Sony should out -develop the opposition constantly
so it turns into the association that constitutes a definitive recipient. In the lo ng run, firms
dismiss their essential objective their clients’ needs, requirements and qualities in quest for
adva ncements in the resource based view strategy . Moreover, what went before a company’s
mechanical advancements, what have turned out to be progr essively essential are the
company’s administration developments. Administration development is an approach which
enables an organization to embrace c hanges in its reasoning, philosophy, tasks and a way to
increase the worth of after-effect of administration or item used in advantage of the client. It
involves a comprehensive understanding of client’s requirements and the qualities associated
with it to join item and administration contribution (benefit bundle). C onsequently, benefit
advance ment in the asset resource -based view depends in light of a company’s capacity to
utilize this comprehension to advance, work together and enter associations that successfully
satisfy their client’s all -encompassing needs and in addition, along these lines , intensifying
the open door for client dependability.
References
Barney, J.B., ; Clark, D.N. (2007). Resource-based theory: Creating and S ustaining
competitive advantage. Oxford, Oxford University Press
Faturrohman, F., Syah, T.Y.R., Darmansyah, H.S. and Pusaka, S., 2018. Application of RBV
Theory and McKinsey 7’S Model on Start -up Company. Scientific Journal of PPI –
UKM, 5(1), pp.1- 6.
Freiling, J., 2017, July. RBV and the Road to the Control of External Organizations.
In Human Resources, Labour Relations and Organizations (pp. 170-191). Nomos
Verlagsgesellschaft mbH & Co. KG.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management.
Paik, J. and Chang, H.J., 2014. Open innovation strategies of smartphone manufacturers:
External resources and network positions. International Journal of Industrial
Engineering, 21(5), pp.252-270.
Weishäupl, E., Yasasin, E. and Schryen, G., 2015. A Multi -Theoretical Literature Review on
Information Security Investments usin g the Resource-Based View and the Organizational
Learning Theory.
Yu, W., Chavez, R., Jacobs, M.A. and Feng, M., 2017. Data -driven supply chain capabilities
and performance: A resource -based view. Transportation Research Part E: Logistics and
Transportation Review .
Yang, N., Colvin, C. and Wong, Y.Y., 2016. A resource -based view of corporate social
responsibility and DMN es rising from China’s high-tech industry. Academy of Strategic
Management Journal , 15(2), p.106.
Yamazaki, K., 2016. Competiti ve Advantages of a Firm without Fundamental Technology: A
Case Study of Sony, Casio and Nintendo. World Academy of Science, Engineering and
Technology, International Journal of Social, Behavioral, Educational, Economic, Business
and Industrial Engineering, 10(12), pp.3980-3990.
