Assignment

1.  Apply the VRIO framework in the following settings. Will the actions described be a source of competitive disadvantage, parity, temporary advantage, or sustained competitive advantage? Explain your answers.

(a)Procter & Gamble introduces new, smaller packaging for its Tide laundry detergent.

(b)American Airlines announces a five percent across-the-board reduction in airfares.

(c)The Korean automobile firm Hyundai announces a 10-year, 100,000 mile warranty on its cars.

(d)Microsoft makes it easier to transfer data and information from Microsoft Word to Microsoft Excel.

(e)Merck is able to coordinate the work of its chemists and biologists in the development of new drugs.

(f)Ford patents a new kind of brake pad for its cars.

(g)Ashland Chemical, a specialty chemical company, patents a new chemical.

(h)The New York Yankees sign All-Star pitcher Randy Johnson to a long-term contract

(i)Michael Dell uses the money he has made from Dell to purchase the Dallas Cowboys football team