Resource Based View of the Firm to Strategic Management in a Global Essay

Resource Based View of the Firm to Strategic Management in a Global Environment - Essay Example Organization refers to systems and procedures that lie outside hard assets yet add value to profitability. Globalization requires that we expand the definition of resource to include intangible assets that are not easy to measure in terms of dollars. According to Wheelen and Hungary, globalization is increasingly dependent on regional trade organizations such as NAFTA. The ability of a firm to lobby for successful legislation and work with regional trade partners is imperative for success. Regional trade groups in Asia, Europe, and North America are a step towards international standards and a firm's ability to position itself within this framework, though of great importance to profitability, is difficult to measure in terms of asset allocation. A firm's existing culture and its ability to adapt is another aspect of a firm that can be measured as a strength or weakness in globalization. A firm's ability to understand and implement business across borders is dependent on the staff's orientation towards the host country's laws, traditions, and accepted business practices. Other intangibles such as brand recognition, respect for intellectual property, and social capital can all contribute to a firm's ability to compete (Rycroft,2002) . ... nformation necessary to plan and move in a timely and profitable fashion (Yeniyurt et al, 2005) Competitor intelligence, as well as customer knowledge, can be used to measure standards or indicate the need to innovate or change strategies. Information of the global setting has the ability to turn this intangible asset into profitability. Moving into the global arena demands that we alter our traditional measures of resources and implement a strategy to quantify what has until recently been considered intangible assets. Resource allocation and the core competencies of a product or service should not be abandoned. Resources such as uniqueness, rareness, desirability, and distribution channels are as important to profitability as ever. However, the need to measure other resources that include culture, diversity, ability to network globally, and the flexibility to adapt to changing global needs are the ingredients necessary to adequately form a firm's global strategy as it relates to the resource based view. The ability to measure these seemingly elusive characteristics of a firm is imperative as we move forward from multi-national to globalization. Works Cited Fahy, J., Alan Smithee. (1999). Strategic Marketing and the Resource Based View of the Firm. Academy of marketing science review, -. Retrieved 12 Jan. 2006, from http://www.vancouver.wsu.edu/amsrev/theory/fahy10-99.html#return Rycroft, R. (2002). Technology-Based Globalization Indicators: The Centrality of Innovation Network Data. Occasional paper series. Retrieved 12 Jan. 2006, from http://www.gwu.edu/cistp/PAGES/Tech-BasedGlobIndic_RWR_10.7.02.pdf Wheelen, T. L., & Hunger D. J. (2006). Strategic Management and Business Policy. (10th ed.). Upper Saddle River, New Jersey: Pearson Education