VRIO ANALYSIS

Value: One of the resources that Army Aviation branch uses as an opportunity is the ability to readily obtain contracts and contractors. By being able to obtain contracts with civilian companies, the aviation branch is able to vastly expand its capable workforce while also saving the branch time and money. Using contractors helps free up available manpower so that other tasks can be accomplished by an aviation unit. This also saves the aviation branch money by removing the responsibility of ensuring personal benefits that it would otherwise have to ensure were the workers service members. Rarity: Most government contract companies that are trying to obtain a contract with the Army aviation branch are also in talks with other military branches and outside aviation companies. If terms cannot be agreed upon between the aviation branch and the contracting company, that company may move on to another customer. Losing a potential contractor can limit the aviation branch on expanding its capabilities. Additionally, there are only a few companies that contract specifically with the Army’s aviation branch. These companies include DRS Technologies, General Dynamics, and Boeing. This small pool of companies limits the aviation branch on how much work it can try to give to contractors since these companies also contract out to other branches of the military and other companies. Imitability: Almost all contracts that the Army aviation branch attempts to obtain face obstacles in terms of cost. The aviation branch is limited on how much it can spend in a particular fiscal year due to congressional budgets. To further compound the problem, congressional budgets vary from year to year. This can lead to some ongoing contracts to be rescinded while other potential contracts can be denied. This constant struggle between the budget and contracts leads to contracts being awarded that go for the lowest possible cost. In terms of money saved on the budget, this can be a positive factor. However, contracts that are awarded at the lowest possible cost can be underfunded which can bring issues such as inadequate quality or inadequate manpower. Organization: Overall, the Army aviation branch does well at implementing contracts and bringing contractors into the organization. Once contracts are awarded, the contracted company is usually assisted by the aviation branch with help in the form of logistic support and setup of their work area and their equipment. In regards to the organizational culture, service members generally see contractors as an added boost of help to their already demanding work schedule and usually welcome the idea of working alongside contractors. Lastly, Army aviation units do not usually apply vast changes how they are structured in order to accommodate contractors. The only significant changes structurally would be the allocation of a percentage of work to the contractor and any logistic support the contractor would need to complete the work.