Reflective essay

As a landmark in my journey at RMIT, Strategic Management course broadens my understandings not only in business context, but also in other aspects of life. Invaluable experience I have gained through this course is far beyond my expectations, since I never thought of associate these knowledges elsewhere but in a university life. Among various meaningful concepts, there is one insight on which this paper would reflect, namely Resources and Competences/Capabilities (R&C). This concept is rooted in the resource-based view (RBV), which tells us outcomes are attributed to resource (Penrose, 1959, cited in Sirmon, David G. & Hitt 2003). Four reflections gained from that insight, which varies from business aspect to personal life viewpoint, will be discussed as following.

Firstly, I would like to make connection between R&C and my life experience. Regarding to my university life, I had taken my tuition fee paid by my parents as granted. However, scrutinizing about R&C has given me a different viewpoint about it. Johnson, Scholes, Whittington and Johnson, 2011 defined that resources are assets an entity has, whereas the ways those are deployed are called competences, or capabilities. Those are two drivers determining pivotal directions of entities. Accordingly, tuition fee would be considered as ‘resource’ and competence refers to how could I use that effectively. Competences here could be expressed by my effort put in studying, as well my skill to apply theories into practical. Consequently, I ask myself whether I use that amount of money efficient enough, if I put that in a bank instead, would that saving account make better return than me. Therefore, the thought pushes me to make the most of my time in RMIT, utilize all learning materials as well as facilities to develop and add value to myself. Thereby, I realize that it is good to own resources, but rather than squander it, it is better to generate value from that principal. Regarding to my working life, I also learnt some key information. As any other company, my company’s human resource include proportion of talented one. They come from many backgrounds and have distinct expertise in their own field. Yet, employee turnover rate of the firm is mainly contributed by them. I tried to find root cause and it turns out that staffs are not encourage to perform their special skills. Since their ego is deflated, they tend to leave. Thus, I recognized that even the company possesses rare assets (resources), it could not produce anything by poor management (capability). In a saturated market as in language teaching, it is crucial to differentiate itself from others by manpower, which is a key success factor as noted in Ketelhöhn (1998). Subsequently, I knew solution to this issue is to develop their awareness (Johnson, Scholes, Whittington and Johnson, 2011). Proposed and got acceptance, I assisted employees to see overall picture of the company, then clearly pointed out how their contribution could achieve the organization’s goals, during my term as a deputy head of human resource (HR) department. Accordingly, once they perceive their impact within the firm, they would stay. To conclude, I appreciate lesson gained, which is resources become strategic assets or not, is all depend on how people deploy it. Same goes to business context, when an enterprise could not utilize its resources, it is a matter of survival.

Secondly, I was given an eye-opening opportunity, when I identify interrelationship among theoretical subjects I have learnt. So far, I studied subjects relates to finance, marketing and economy. Still, I had not seen any link among them until I studied this course. It is same as you lack a glue to put all fragmented pieces together to complete a whole picture. Learning Strategic Management was a great discovery, as I could notice the similarities about those courses in terms of R&C. I was surprised when formulate a strategic plan, all concepts I learnt were parts of it. To illustrate, barrier to entry I learnt in economic was to analyze Porter’s five forces, product segmentation I studied in marketing class was a tool to classify target clients, risk hedging concept taught in finance class was to prevent an assigned company from liquidity risk. I have not though of those concepts are actually ‘resources’. Additionally, the process when I justify which methods should be implemented, is called ‘capability’. Thus, I explore each subject in RMIT that seem irrelevant, is essentially single bricks, but how to use that to build depends on how I structure that. Furthermore, it is your competence that you could use bricks to build a house or a castle. Thereby, I discovered that separate parts are inadequate to reveal complete picture, rather, I should combine them and push beyond distinct boundaries (Grant 1991; Mahoney & Pandian 1992).

Spotting connections in field of study, I was fascinated by how R&C concept could solve circumstances in a real-world context. Therefore, my third reflection is a review about the relationship between R&C and Vietnam’s environment. There is a common saying in Vietnam that is ‘golden forest and silver sea’. It implies that natural resources are proud of Vietnam, by indicates their value as same as two precious metals and their quantities are plenteous. However, it is a good thing or not depends on which outlook you pick to see. Articles ‘Exporting raw materials, Vietnam eats itself’ 2013 and ‘Vietnam remains poor amid golden forest and silver sea’ 2013 report that though Vietnam has abundant mineral resources, it is not equivalent to level of prosperity. Instead, it leads to serve monetary loss and environmental degradation. Applied what I gained through class, the first thing I do is to identify R&C. Apparently, ‘resources’ are minerals while ‘capabilities’ are expressed as a lack of governmental control. The next step is to examine root causes and consequences within R&C concept. Mahoney & Pandian (1992, p.365) stated ‘Distinctive competence is a function of the resources which a firm possesses at any point in time’. The theory tells us that by allocate resource efficiently, we could make a better use of it. Therefore, in Vietnam’s case, the cause is inefficient allocation of natural resources, when the government allows enterprises to export raw materials. It led to a depletion of national assets ( ), and exhaustion of resources is inevitable consequence. Correspondingly, it causes detriment to both economy and environment. The last step is to find a solution based on R&C concept. Heene & Sanchez (1997) and Sirmon, David G, Hitt & Ireland (2007) suggest that replacing current way of implement with a new competence development is how we could tackle problems. Thus, I think Vietnam should improve its position in global value chain, changing to production stage in lieu of extraction stage. Therefore, my state could gain higher cash inflow for exporting processed goods. In conclusion, it is critical to enhance value of resource, rather than turn it into depreciated assets. The same resources, but different practices could bring divergent outcomes is what I gained.

Finally, understanding about R&C fosters me to grasp the deep awareness for my career pathway. As a final year student, I am preparing to walk into life, and insights got from this course are precious. Again, applying R&C theory, my baggage used in life journey could be named as RMIT degree, achievement awards, leadership experience and skills. Also, my competence here is the way to compete with other fresh graduates. To differentiate myself from others, there are four stages in resource management suggested in RBV I should follow (Sirmon, David G. & Hitt 2003). The first stage is Resource Evaluation, which is used to review where I am standing. I reflect on myself and continuously ask whether my degree is standing out from other graduates, my skills are sustainable in fast-pace changing world, my experience is enough to ready for work. Then, I realize my resources are in middle level, or average, sad but true. The next stages are Resource Shedding and Adding Resources, in other words, modifying resources to fit with long-term goals. In the future, I decide to challenge myself in HR sector. Thus, I need to shed my straightforward attitude, since it is a double-edged sword when interact with people. Furthermore, the skill I need to develop is listening skill because it is pivotal factor to maintain harmonious environment among people. The final step I need to keep in mind is Resource Bundling and Leveraging. Thus, I will be a better me only when all resources I have are configured into bundles, and those are appropriately applied to certain scenarios.

In conclusion, this paper demonstrates my insights about Resource and Competence as well as its connection to my development in different aspects. The paper also discusses a synthesis of Strategic Management discipline and real world phenomenon, which considerably assist me in walking the very first steps in my life journey.