“Resources and Capabilities” Please respond to the following:

· Go to Fortune’s Website and read the article titled, “Fortune 500: 20 biggest stock gainers,” located at http://fortune.com/2014/06/02/top-stocks-500/. Then, read the article titled, “Fortune 500: 20 biggest stock losers,” located at http://fortune.com/2014/06/02/500-worst-stocks/. Choose one (1) firm from the top stocks and one (1) firm from the worst stocks. Use the Value, Rarity, Imitability, Organization (VRIO) framework to assess the success or failure of these organizations. If the VRIO framework is not sufficient, speculate on the other major factors that might be responsible for the success or failure for each organization. Provide a rationale for your response.

· From the case study, compare and contrast the core resources and capabilities of emerging multinationals from emerging economies against multinationals from developed economies. Suggest two (2) practices that developed multinationals can adopt from emerging multinationals in order to grow or protect their franchises. Provide a rationale for your answer.

Part 2: Respond to a Peer

Choose one (1) firm from the top stocks and one (1) firm from the worst stocks. Use the Value, Rarity, Imitability, Organization (VRIO) framework to assess the success or failure of these organizations. If the VRIO framework is not sufficient, speculate on the other major factors that might be responsible for the success or failure for each organization. Provide a rationale for your response.

 

I choose Facebook and Broadcom as part of top stock gainer and top stock looser respectively. Facebook for the year 2015 gain a lot of stock as it is evident by the statistical results. The platform was ranged twenty of the stock gainers. The attempts by Broadcom to involve itself in emerging technological innovation such as LTE brought little changes. I can speculate this happened because of the high competition the firm experience from the competitors such as MediaTek, QUALCOMM and the LTE market.

From the Emerging Markets: From Copycats to Innovators case study, compare the core resources and capabilities of emerging multinationals from emerging economies against multinationals from developed economies. Suggest two (2) practices that developed multinationals can adopt from emerging multinationals to grow or protect their franchises. Provide a rationale for your answer.

There are two main methods that developed multinationals can utilize such that they can grow on emerging multinationals to protect their franchise. These two methods include using highly innovated products/patenting them and producing a high reliable product using lower cost.

The expansion and the growth of EMNEs have contributed to the gain of knowledge by the emerging multinationals. This is possible by taking the market share from the multinational headquarters which has developed. In this way, they will access the benefits from global capabilities and the network which has been built over a length of time. Examples include: the development of ultra-deepwater described as pre-salt oil production which is currently deployed to many parts of the world and the Moscow-headquartered Kaspersky Lab.