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ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Norvik Hotels' board argues that its prime beachfront sites, its trained staff, and its 'warm hospitality' culture all give advantage. Analysis shows beachfront sites are valuable and rare but easily bought by rivals; all competitors employ equally trained staff; the culture arose from 30 years of founder-led history, is valuable, rare and embedded in systems. Which ranking of sustainability is correct?

The culture gives sustained advantage because its historical, embedded nature makes it costly to imitate. The sites give only temporary advantage because rivals can buy equivalent ones, and the equally trained staff provide competitive parity because the resource is not rare.

  1. ACulture is sustained advantage; sites are temporary advantage; staff are parityCorrect
  2. BSites are sustained advantage; culture is temporary advantage; staff are parity
  3. CCulture is sustained advantage; sites are parity; staff are temporary advantage
  4. DAll three give sustained advantage because each is valuable

Explanation

Culture is valuable, rare, costly to imitate because it is historically path-dependent, and organised, so it gives sustained advantage. Sites are valuable and rare but easily imitated (bought), giving temporary advantage. Staff skills are valuable but not rare, giving parity. Option 2 confuses ease of purchase with inimitability.

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