Sample Management Essays on VRINO Framework

Companies and organizations rely on short and long-term strategies to outperform their competitors. These organizations use organizational resources to create value and address needs of its clients. Modern businesses apply VRINO framework to evaluate the capability of an enterprise to utilize its resources to create value and gain competitive advantage.

VRINO framework is applicable to non-profit entities like Shelby Land Bank, a department of the Shelby County involved in acquiring, leasing and disposing property. As such, Barreto (2010) reveals that any profit or non-profit organization need to operate on bundled resources comprising processes, capabilities, assets, and product characteristics. Using a VRINO framework, these resources are often essential in helping a company or department to execute critical activities to gain a competitive edge. As shown by Lin & Tsai (2016), all resources may not be required to enhance productivity and create value. As a result, organizations utilize frameworks to identify the single resource that possesses the qualities of Value, Rareness, Imitability, Non- substitutable, and Organized (VRINO).

The single resource in at Shelby County Land Bank is urban lands and spaces. Hence, Value is created by the ability of the department to lease or sell the property to investors capable of redeveloping neighborhoods. The competitive advantage is created when the department finds suitable buyers. Regarding Rareness, the Land Bank department provides property that is rare to find. Some of the properties are regained through demolitions and maintenance. The department then rehabilitates spaces to create green gardens ready for leasing. Consequently, it is difficult to Imitate the properties offered for leasing or sale by department. It is because the redevelopment decisions made after consulting the local communities. Per Cardeal & António (2012), an entity creates value if it provides highly customized products and services to its customers. In this case, the department provided customized land for development. Moreover, urban lands offered by the department are Non-substitutable. The clients cannot find similar highly modified public land spaces elsewhere. The lands provided are also Organized into portions for housing development, green spaces, community gardens, and parks. The clients have the privilege to select from a wide variety of property.

Indeed, strategies distinguish a company from another. Hence, the ability to achieve competitive advantage largely depends on the appropriate use of a rare resource within a company. Overall, the department has been able to exploit the valuable, rare, imitable, non- substitutable and organized features of land resource to enhance sustainable land use.

 

References

Barreto, I. (2010). Dynamic capabilities: A review of past research and an agenda for the future.

Journal of Management, 36(1), 256-280.

Cardeal, N. & António, N. (2012). Valuable, rare, inimitable, resources and organization (VRIO)

resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to competitive advantage? African Journal of Business Management, 6, 10159-10170.

Lin, C. &Tsai, H. (2016). Achieving a firm’s competitive advantage through dynamic capability.

Baltic Journal of Management, 11, 260-285.