The CEO of WRSX Has Asked You to Write a Short Educational Piece That Essay

The CEO of WRSX Has Asked You to Write a Short Educational Piece That Will Be Given to the Board Of Directors - Essay Example They operate in United States, Europe as well as in Asia pacific. In a survey conducted on the marketing communications and advertising industry the score of the company was below average. Though the customer retention and attraction capability of the company is pretty good, but in other areas of business the performance of the company is not attractive for the investors. This report is an attempt to analyze the reasons of underperforming of the shares of WRSX group and recommend about the changes that may be undertaken by the company management to gain more market shares. The researcher will conduct internal analysis of the company and describe the benefits of internal analysis to the board of directors of the company. Internal Analysis For conducting the internal analysis of the company the researcher will use the SWOT analysis tool and the resource based view analysis (Snell and Bohlander, 2012, pp.53-54). Resource Based View The resource based view analysis of a company is conduc ted to analyze the resources available to the company which can be profitable when it is used strategically. For analyzing this, VRIN framework has been made by the researchers. This framework identifies the valuable, rare, in-imitable and non substitutable resources of the company (helfat, 2007, p.45). For the resource based view analysis the VRIO framework is used to identify the valuable resources and utilized them at their best (Peng, 2008, p.71). The analysis of WRSX using the VRIN framework is as follows. Valuable: The valuable asset of the company is the capability of the team to perform locally. They understand the local customer needs more. Rare: The capability of the company to attract the customers and retain them is the best in the concerned industry (Sanchez, 2008, p.34). This capability will provide them above average return if they use the resources strategically. In-imitable: There are no such in-imitable resources of the company. Other companies in the industry can imitate these resources available to them (McKinney, 2008, p.2). As the advertising and marketing communications is a fast moving industry, so there is enough chance for the company management to develop such resources. Non-Substitutable: The non-substitutable nature of the asset of a company means that the company owns such asset that cannot be imitated by the competitors by any means, and meet the customer needs (Carter, Clegg and Kornberger, 2011, p.87). WRSX doesn’t have such assets which can be substituted by some other asset. Though the company has some valuable resources but they are not using those strategically at present. SWOT Analysis The SWOT analysis of the company is a popular tool for the analysts as it describes the strength, weakness, opportunities and threat of the company (Handlechner, 2008, p.10). Using this tool the management of the company can improve in the areas of their weaknesses, use the opportunities and can take effective steps for facing the thr eats for the company (Mello, 2003, p.43). The SWOT analysis of the company is as follows Strength: The Company prefers to provide service locally. They followed the ‘