why he is having a difficult time creating a sustainable competitive advantage.

Problem Statement: Frank is having a hard time to determine an appropriate growth strategy that will create a sustainable competitive advantage for his organization. According to Williams a sustainable competitive advantage is when other companies cannot duplicate the value of a firm is providing to its customers !"#$$%. Factor $: &he organization '()s approach lacks of nonsubstitutable resources. &he first factor that contributes to Frank)s issues to create a sustainable competitive advantage for *alveta is that the '()s approach takes away the organization)s nonsubstitutable resources. +onsubstitutable resources means that there is no other resource can be replace them and produce similar value or competitive advantage !Williams "#$$%. ,n order to create a sustainable competitive advantage an organization must have resources that their competitors do not have and cannot have the same value in result even if they tried to copy. ,n this case *alveta)s nonsubstitutable resources are their employees. ,t is because that *alveta)s culture is embedded that the connection between their service and profits is the people !'eskett "#$$%. After reading the company)s annual client satisfaction survey Frank had realized that the company)s employee progression policies had caused their clients great frustration !'eskett "#$$%.&he clients had reported that the work)s -uality had dropped every time the new manager)s transits occurred and it also caused an inconsistent in maintaining the workforce especially with their favorite one. ,t is a great thing that *alveta)s employees are the nonsubstitutable resources. however with the current '()s approach *alveta is taking away their own important factor to create a sustainable competitive advantage. Factor ": &he employees) perceive about the company)s culture are getting less as the company is growing Another factor that adds up to the problem is as *alveta growing the Antonio)s way is getting less focus and the employees are not well adapting the company)s culture. For *alveta the Antonio)s way is the imperfectly imitable resources. An imperfectly imitable resource is resource that /impossible or e0tremely costly or difficult to duplicate1 !Williams "#$$%. &o create a sustainable competitive advantage besides nonsubstitutable resources the company must also have an imperfectly imitable resource. 2ne of the most important factors in creating a sustainable competitive advantage is to have a strong valued culture within the organization. *alveta is started and carried with such inspired culture and it is their imperfectly imitable resources other companies cannot duplicate their culture and it is e0tremely difficult and e0pensive to imitate the Antonio)s way. 'owever *alveta is having a hard time to balance out its growth and the company)s culture. As mentioned in the article /Frank worried too that new management wouldn)t adopt the company)s core service values as easily as more tenured staff1 !'eskett "#$$%. For *alveta to e0panding its growth is a good sign but to growing without its core value is like a tree growing without a solid root.

Solution: Factor $: &he organization '()s approach lacks of nonsubstitutable resources. &o solve this problem Frank could use the stability strategy. Stability strategy means the company keeps doing what they have been doing 3ust with do it in a better way !Williams "#$$%. 4ecause the philosophy behind the employees) progression policy is to create an opportunity for the employees to fully develop their potential. &he company should have the employees who will transfer soon to train and guide the new person who will replace their old position. &his will minimize the glitch could occur during the transition. 4y adapting this strategy Frank can maintain both the organization)s value and satisfy the clients) needs. A possible downside for this outcome is it never enough to satisfy all clients) needs. &herefore the company should carefully review and consider the client)s feedbacks. Factor ": &he employees) perceive about the company)s culture are getting less as the company is growing A probable solution for this issue is to apply the retrenchment and recovery strategy to the company. According to Williams retrenchment strategy is shrinking the size of the business then return to the growth strategy to increase the company profits revenues etc5 of the company after ad3ust its health !"#$$%. 4y using this strategy the company first will have to cut6 off their work6force to the point where they can ascertain their employees adapt well with the company)s core values. 2nce the employees synced with the Antonio)s way they can continue to e0pand their growth through internal or e0ternal method. With this solution a potential drawback is that even when *alveta successfully embrace their employees with the organization)s culture they cannot keep it up in the large workforce. ,t is tough to maintain and make sure every employees carry Antonio)s way when the company e0panding its size. ,n my opinion Frank should come up with a mentor6mentee program where the well6adapted e0perienced employees can lead and guide the new comer to work and perceive the company)s core values.