VRIO ANALYSIS

BMGT2299 MINI-Case Guidelines – 1
MINI CASE – VRIO ANALYSIS
BMGT2299 Cases in Strategic Management
Assignment Overview: The purpose of this assignment is to use the VRIO (Valuable, Rare, Costly to
Imitate, Organized for Value) Analysis tool to determine the competitive advantage of a company of
your choosing. Be sure to choose a for-profit medium to large size company and conduct research on
the company’s tangible and intangible assets.
Upon completion of your research, use your judgement to determine the top 6 capabilities of this
company. Capabilities must include both tangible and intangible assets. (See your text for further detail
on the differences.) Rate each capability on the VRIO Analysis and make a final competitiveness rating.
Lastly write an Executive Summary with the following points:
• Introduction – Overview the purpose of this analysis and briefly what the company does. Be
sure to refer to the VRIO Analysis Chart.
• Paragraph 1 – Overview the VRIO Chart & why the 6 capabilities are the most important ones
for this company. Be sure to refer to the chart and discuss whether the capabilities are
intangible or tangible assets for the company.
• Paragraph 2 – Discuss the overall strengths (if any) for this company from the capabilities that
lead to a competitive advantage. (Note: If the company has no strengths, use the space to
expand on its weaknesses.)
• Paragraph 3 – Discuss the overall weaknesses (if any) of this company from the capabilities
that lead to a temporary competitive advantage, competitive parity or a competitive
disadvantage.
• Closing – Provide specific recommendations for the company to improve or maintain its
current competitive advantage based on your analysis.
Steps to complete this assignment:
1. Choose a for-profit medium to large size company.
2. Research the company. Items to look for might include:
▪ Mission/Vision Statement
▪ Company Values
▪ Products/Services Provided
▪ CEO Biography
▪ Patents/Trademarks owned
▪ Physical assets that provide competitive advantage
▪ Expertise in processes, such as Marketing, Manufacturing, etc.
Thinks about – “What is this company known for?”
• Be sure you have a broad enough overview of the company to characterize 6 capabilities that
include both tangible & nontangible assets. Think about what makes this company competitive
or not competitive in their industry. Be sure to have resources to justify your points.
3. Complete the VRIO Analysis chart characterizing:
o Capabilities – consider both TANGIBLE & INTANGIBLE company resources.
NOTE: You must have examples of both!
▪ Minimum of 6 capabilities in total.
▪ Use short phrases with action words
▪ Be succinct with each capability, but meaningful by using adjective qualifiers.
BMGT2299 MINI-Case Guidelines – 2
o In relationship to the industry, determine (YES, NO, or ?) are the capabilities:
▪ Valuable
▪ Rare
▪ Costly to imitate
▪ Organized for Value
o In the RESULTS column determine the competitive status of each capability and include
a short explanation as to why?
▪ Sustained Competitive Advantage (NOTE: This cannot be achieved if you
answered NO to any question on the VRIO!)
▪ Temporary Competitive Advantage
▪ Competitive Parity
▪ Competitive Disadvantage
4. Using your analysis, write an Executive Summary.
o Follow the guidelines above for the structure of the Executive Summary.
o Length – 1 – 1.5 pages Include an overview of the capabilities.
Format Guidelines
• Submit to Bb in one professionally prepared Microsoft Word document (2-3 pages)
• Business Writing format – Do NOT use “I” statements!
• 11 point font – Times New Roman or Calibri
• Spell check and grammatically correct
• Citations of resources in APA format
Grading RUBRIC
Graded Content Area POINTS PERCENT
VRIO Chart – (Minimum 6 capabilities – 5 points
each)
• Thoroughly and distinctly described
• Both Tangible & Intangible Capabilities are
represented.
• All 5 questions of VRIO answered
• Results listed in terms of competitive
advantage and briefly why.
30 30%
Executive Summary –
• Introductory Paragraph (4 points)
• Overview of 6 Company Capabilities (6 points)
• Discussion of Strengths (if any) & Weaknesses
(Approximately 2 paragraphs) (20 points)
• Closing with strategic recommendations (10
points)
40 40%
Professionalism of Assignment
• Well written supporting main points
• References VRIO Chart in writing narrative
• Limited spelling grammatical errors
• Strong use of business writing style
20 20%
Citations
• Includes APA sources listing 10 10%
TOTAL POINTS POSSIBLE 100 100%