On the other hand, strategic response involves the organization’s actions that are undertaken to maintain productivity in an operating environment that is highly competitive. This paper presents a critique of the proposition that firms succeed because of the resources under their control rather than because of their strategic response to the competitive environment.
A firm that has success to sufficient resources is capable of maintaining a competitive advantage. For example, the availability of skilled workers helps a business to remain competent. If it is able to maintain a satisfied workforce, than competing companies, the firm’s productivity is maintained. On the other hand, skilled workers need to be provided with the necessary resources for them to perform effectively (Housden, 2006 p 56). Many organizations fail as a result of their failure to facilitate employees to utilize their talents and skills and exploit their potential to the fullest. For example, employees with a potential for research and development can not be useful to the organization if they are not facilitated with the appropriate resources. A business with sufficient resources is likely to succeed in the long run especially due to the fact that it is able to utilize emerging opportunities. Such a business is likely to be competitive because they are capable of adopting emerging inventions in the market before competitors with meager resources. For example, if a new technology for production is realized, an organization with ample space and finances can set up a pilot project to run concurrently with the existing production system. This allows the firm to have sufficient time to test the applicability of emerging inventions; hence it can not incur heavy losses.
On the contrary, a firm that operates with meager resources either replaces the existing technology with emerging technology or