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Essay On The Resourced-Based View and Institution-Based View, Compare and Contrast.

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Objective of this essay is to enhance your understanding of the three underpinning theoretical perspectives upon which the Global Strategy builds, i.e.industry competition, resource-based view and institution-based view. You need to choose either two of the three theories, and examine how they differ as well as supplement each other in assisting firms with forming strategies. Note that in the essay your focus is on ‘compare and contrast’ the two chosen theories, as well as the linkages between them, from which an integrated viewpoint can be developed. Importantly, you should put fo...

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Question Preview:

Objective of this essay is to enhance your understanding of the three underpinning theoretical perspectives upon which the Global Strategy builds, i.e.industry competition, resource-based view and institution-based view. You need to choose either two of the three theories, and examine how they differ as well as supplement each other in assisting firms with forming strategies. Note that in the essay your focus is on ‘compare and contrast’ the two chosen theories, as well as the linkages between them, from which an integrated viewpoint can be developed. Importantly, you should put forward logical, not intuitive arguments, and use scholarly work to support them.The essay is individual work and has a word limit up to 2,000 (excluding references). To complete the essay not only do you need to familiarize yourself with the textbook (particularly the first four chapters) but also search for additional materials from other sources such as books and academic journals. To achieve an A grade and above, a great depth of understanding of the theories is essential.

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Resource-based view depicts the capabilities, especially internal ones of a particular company. RBV also analyze some strategies, which help to sustain the company in a competitive market. On the other hand, institution-based view demonstrates the strategic performance of a company. The advantages must be discovered by this differential analysis, which will help to sustain the company in market. Company’s competitive strength helps to achieve specific advantages by a proper implementation of strategy. The following essay determines the contrast and compare between resource-based view and institution based view.Fundamental concepts, arguments and propositionsResource-based view concepts: There are two basic assumptions, which are involved with resource-based view of a company. Resource immobility and diversity of resource; resource immobility depicts that kind of resource that is not easy to exploit by other competitors. On the other hand, diversity of resource indicates that there are different resources those are possessed by the companies. Resourced-based view is something which is gained by the company’s internal facts. Evaluating strategic analysis of a company is also meant by resource-based view. A company is consisted of its various resources as well as capabilities (Kraaijenbrink, Spender and Groen, 2010). Arguments and propositions: Resources of a company are its internal factors, strategic analysis towards external environment of the market, information and knowledge, whereas capabilities are some value initiating factors achieved by the specific company. Strategists of a company evaluate the resources and competitive position of a company that is termed as resources. Capabilities of a company cannot be exploited by competitors because there are some specific values initiating methods gained by the company. Competitive advantage is on the other hand, that depicts the competitive position of a company by its resources and capabilities (Nath, Nachiappan and Ramanathan, 2010). There is another factor which is important to describe in case of resource-based view that is VRIO analysis. The acronym, VRIO, is consisted of value, rare, in-imitable and organization. Value stands for the valuable resources or strategies of a 

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