Provide a definition of the business of the company in the first paragraph succinctly. Be sure to name the business of the company, major business segments, and geography.
(b) VRIO Analysis. (three paragraphs)
Second, use Barney’s VRIO framework to uncover a firm’s key weaknesses, strengths, distinctive competencies, and sustainable distinctive competencies. Again the critical part is not to identify but to analyze and synthesize. As you write this section, think of top three key strengths, weaknesses, distinctive competencies or sustainable distinctive competencies (S/W/DC/SDC).

Write one paragraph on each of them, clearly revealing whether the selected resource/capability is valuable, rare, and inimitable and WHY? Be sure to give the rationale in the text (not in the exhibit). Also, address whether the firm has the organization (structure) and complementary resources to take advantage of the resource/capability being discussed in the paragraph. Also be sure to mention whether the resource/capability is a weakness, strength, distinctive competence, or sustainable distinctive competence.

In the past, we have seen some students name three S/W/DC/SDCs in one paragraph. Then, in the second paragraph, they evaluate whether or not each of them is valuable. After that, in the third paragraph, they go on to analyze whether they are rare. Over the years, we have found that the “bunched up” format is more confusing for the reader. Therefore, it is better to focus on one S/W/DC/SDC in each paragraph.

A special note about weaknesses. Students often ask whether they should bring up a weakness or not. Our response is: Bring it up if it is a strategic weakness that you think is important for the top management to address for their strategy to be successful in the next five years. If you do bring it up, keep it mind that you should analyze whether or not it can become strength, distinctive competency, or sustainable distinctive competency, if the company invests in it. Also, be sure to come up with ways to make up the weakness as part of your strategy when you are building the strategic alternatives!

In the text, you will raise the top three items for strengths, weaknesses, distinctive competencies, and sustainable distinctive competencies. Therefore, look at an Appendix given in the course package after the Barney’s article on Looking Inside for Competitive Advantage. Before writing the text for internal assessment, prepare an exhibit (similar to the one given for the Crown Cork and Seal Company) that shows all relevant areas (not just the top three items) of the value-chain and whether or not they are valuable, rare, and inimitable (see a blank Exhibit A in this document). We are not expecting you to provide rationale for each of the items in the exhibit. When you are examining the value chain, you may add an activity that is relevant for the case under study or delete an activity that is not relevant. For example, for a service firm, you may use “Operations” rather than “Manufacturing” given in the value chain. Remember to refer to your exhibit in your internal analysis write-up.