Abstract
One important thing to know about your competition is by knowing how an organization is using their human resources. An organization must have the edge over its competitors to keep the competitive advantage. This report reviews how human resources can become a competitive advantage for any organization. One of the most important features of an organization is organization, organizations team and its employees and these can be defined as HR strategy and Human Capital. Human Capital is a sustainable gain; different forms of strategic human capital play different roles in different human resources systems interacting with the competitive strategy on sustained competitive advantage.
Introduction
Competitive advantage was always gained through factors such as production capacities, research labs, distribution channels, financial resources and economies of scale. Despite the fact that these variables are still relevant but not sufficient for success in today’s business world. It is normally acknowledged that people are the key resources in the new world market. And all every single other assets are nothing more than commodities that can be acquired at market prices, but only the human asset has potential to learn, grow, develop and contribute. People are the most valuable asset of any company, because all successful management plans are carried out by people. Competitive advantage is usually achieved through technology, strategies like – cost reduction, cost
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
, What differentiates the organization from its competitors in the eyes of customers and other stakeholders? and Which skills and resources should be developed within the
It can be said that by means of organisation’s competitive strategy, it can achieve an upper hand in the business market over its rivals. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal,
Introduction Strategic human resource management is an approach to the development and implementation of Human Resource strategies. The best way to understand strategic human resource mamagement is by comparing it to human resource management.strategic human resorce management is seen as a partner in organizational succes. It utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective. Strategic human resource management is the practice of attracting,developing,rewarding, and retaining employees for the benefit of both the employees as individuals and the organizations as a whole. Hr departments interact with the other departments within an organization in order to understand their goals and then create strategies that align with those objectives, as well as those of the organization.
The human resource management is vital in safeguarding that the people employed by an organization live up to their capabilities. This can be done by creating a strategy plan that aligns with the organizational goals. Their actions are designed to move that plan forward. The HR function should focus on value-adding activities to support the execution of the business strategy and objectives. By implementing the strategic plan organizations achieve results.
Based on four attributes, first one is Factor endowments that focus on basic factors natural resources, climate, location, demographics second one is advanced factors such as communication infrastructure, sophisticated and skilled labour, research facilities, and technological know-how. Third one will be advanced factors are a product of investment by individuals, companies, and governments. Porter argues that advanced factors are the most significant for competitive advantage. Lastly demand conditions that look at customer need or the demand on which is being produced, companies will have to produce innovative, high quality products early, which lead to competitive advantage. Relating and supporting industries, if suppliers or related industries exist in the home countries that are themselves internationally competitive, this can result in competitive advantage in the new industry, firm strategy, structure, and rivalry.
There are many things that make some countries consistently seek for improvements and capable of consistent innovation, Innovation is important for companies in order to achieve competitive advantage and to sustain this competitive advantage it needs to be followed with consistent improvements. Porter had made a framework to understand the competitiveness of nations and address why certain companies are always looking for more sophisticated source of competitive advantage. As porter stated a nation gain competitive advantage if its firms are competitive, a company become competitive through innovation and improvements. The Framework consist of four attributes that, they together form porter diamond of national advantage model, these attributes are: Factor condition, Demand condition, Related and supporting industries, and Strategy, structure and rivalry. These factors create the national environment where organizations compete.
INTRODUCTION Human resource management is the strategic approach to the management of an organization 's most valued assets - the people working there who individually and collectively contribute to the achievement of the goals of the business (Armstrong, M., 2006). In other words, human resource management is a to work with employees, and for the employees, to help them solve their problems. Therefore, human resource is a complicate department, as they deal with people who already work there, they also deal with several issues which happen among new employees, such as recruitment, selection and so on. Nowadays, employee retention becomes one of the most significant issue in the organizations, and managers are aiming to find the best employees
5.3 Country position and attractiveness According to Porter (1990), the level of competitiveness on a country depends on the capacity of the industry and the skills to upgrade and innovate. The competitive advantage is produced and sustained on the differences in values, economics structures, culture, institutions, history, and other factors that contribute to competitive success. Therefore, companies as well as nations have to fight for a position on the market as centers of production or industrialization of products.
COST STRUCTURE OF SAMSUNG Low cost structure of Samsung and high responsiveness to economic events has made Samsung more competitive. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm.
From the course Marketing Management, I acquired fundamental understanding in strategic management and key analytical skills in evaluating clients’ needs, leading on to my further consideration on the dynamic between internal and external needs, as well as decision-making. I still remember how Michael Porter’s Five Forces was used to analyze the cases of Nike and Adidas in Introduction to Management Strategy. I begin to realize that although strategic management in finance and marketing is vital for companies ‘development in the long term, human resources management is a lever, offering the most flexible way to maximize the productivity and increase profits by allocating existing resources. I would like to explore the complexities and acquire advanced skills in this
Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.
1. Market Penetration requires increasing the existing product sales in the existing market. The main strategic objective is to obtain more market shares or get the position of market leader. As an example: Aldi followed the market penetration strategy by opening thousands of stores across UK offering the same products. 2.
For example, a global style has been created across borders and cultures fashion as images in social media and internet are instantly distributed around the world. The company cannot longer rely on the traditional factors of production to provide a sustainable competitive advantage, but must look how they can exploit its knowledge acquired through the years in order to gain competitive advantage
CHAPTER 1 INTRODUCTION: 1.1 Industry Profile: The health care industry is also called as medical industry or health sector. The health care industries are one of the fast-developing industries in the world. It is one of the economical segment, which offers medicines, drugs and various other services for treating the patients. This sector is considered as the social sector and is monitored by the State and Central Government.