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Improvement Project of Science Construction CS

Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
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How to gain resource based competitive advantage?



The Resource based view (RBV) is a model that sees resources as key to superior firm performance. If a resource exhibits VRIO (Valuable, Rare, Inimitable, and Organized) attributes, the resource enables the firm to gain and sustain competitive advantage (Jurevicius, 2013). It analyzes and interprets internal resources of the organizations and emphasizes resources and capabilities in formulating strategy to achieve sustainable competitive advantages. Resources may be considered as inputs that enable firms to carry out its activities. Internal resources and capabilities determine strategic choices made by firms while competing in its external business environment (Madhani, 2009).
The Resource Based View (RBV) takes an ‘inside-out’ view or firm-specific perspective on why organizations succeed or fail in the market place. According to RBV, firm’s abilities also allow some firms to add value in customer value chain, develop new products or expand in new marketplace. The RBV draws upon the resources and capabilities that reside within the organization in order to develop sustainable competitive advantages. However, not all the resources of firm will be strategic and hence, sources of competitive advantage. Competitive advantage occurs only when there is a situation of resource heterogeneity (different resources across firms) and resource immobility (the inability of competing firms to obtain resources from other firms) (Madhani, 2010).

The revolution of information is sweeping through the economy. No company can escape its effects. Dramatic reductions in the cost of obtaining, processing, and transmitting information are changing the way business is done. Information technology is more than just computers, it must be conceived of broadly to encompass the information that businesses create and use as well as a wide spectrum of increasingly convergent and linked technologies that process the information. In addition to computers, then, data recognition equipment, communications technologies, factory automation, and other hardware and services are involved. The information revolution is affecting competition in three vital ways (Porter, & Miller, n.d.):
-          It changes industry structure and, in so doing, alters the rules of competition.
-          It creates competitive advantage by giving companies new ways to outperform their rivals.
-          It spawns whole new businesses, often from within a company’s existing operations.

·         Briefly comment on Carr’s ‘IT Doesn’t Matter’ argument, offer your thoughts.
Harvard Business Review published an article called “IT Doesn’t Matter.” Its author, the magazine’s executive editor Nicholas G. Carr, argued that information technology no longer gives businesses a competitive edge. Carr called information technology managers impatient, wasteful, passive, and lured by the chorus of hype about the so-called strategic value of IT. I might don’t agree with “IT doesn’t Matter.”. In my opinion, if IT was not important to gives businesses a competitive edge, then the global investment in information technology (including telecommunications) wasn’t to reach a total of $1.9 trillion in 2003 (Metcalfe, 2004).



References:
-          Jurevicius, O. (2013). Resource based view. Retrieved from: https://www.strategicmanagementinsight.com/topics/resource-based-view.html.

-          Madhani, P. (2009). Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1504379.

-          Madhani, P. (2010). Resource Based View (RBV) of Competitive Advantage: An Overview. Retrieved from: https://www.researchgate.net/publication/45072518_Resource_Based_View_RBV_of_Competitive_Advantage_An_Overview.
-          Metcalfe, R. (2004). Why I.T. matters. Retrieved from: https://www.technologyreview.com/s/402800/why-it-matters/.

-          Porter, M. & Miller, V. (n.d.). How information gives you competitive advantage. Retrieved from: https://hbr.org/1985/07/how-information-gives-you-competitive-advantage.
 

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