BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -1. Identifying Resources. For the first stage of procedure for strategy formulation in figure 1, Grant distinguishes “six major categories of resource have been suggested: financial resources, physical resources, human resources, technological resources, reputation, and organizational resources” (Grant, 1991, p.

Detailed explanation-2: -What does the resource-based model suggest a firm should do to earn above-average returns? . Above-average returns are earned when the firm uses its valuable, rare, costly-to imitate, and non substitutable resources and capabilities to compete against its rivals in one or more industries.

Detailed explanation-3: -What is the first step in a strategy making process? The first step in strategy making is determining whether a strategy needs to be changed to sustain a competitive advantage.

Detailed explanation-4: -The three main key terms of the resource-based theory are tangible resources, intangible resources, and capabilities. Tangible resources are those that have a physical form and can be touched. They are used to produce other goods and services and include things like buildings, machinery, and equipment.