So plain and simple the key problem lies in: How will the resources that Loam built carry them into the future so they can maintain a competitive advantage that it has strives to build? II. There are going to be 2 avenues we must examine in order to see if the company really is going to be able to keep their competitive advantage. The first Is their Supply Chain Management and the second Is going to be their Human Resource Department. The best way to examine our 2 avenues Is to apply the BRIO Framework. So how is Loam’s supply chain valuable?

They provide value to heir customers by being able to provide them with products all year round. Loam also has the capability to provide multiple products to a customer; which in turn allows their customers to deal with fewer suppliers allowing customers’ processes to be simplified. Next we will look to see if Loam provides a rare service? We can yes to this too based on how the company is able to process their products In multiple locations / countries. They run such a lean and efficient supply chain that their competitors are not able to compete. Now let’s look at the internal strength that

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Loam possesses by making the resources too costly to imitate or I should say posing such a long path for competitors to get where Loam is. All acquisitions have put Loam into one of the top producers in each of its products profiles. If their competitors can’t find a way to get rid the middleman they can’t compete. It took Verges years to build relationships and trust In order to achieve this. The last point here Is how Loam’s organization structure works to exploit the firms resources. Loam has organized the business into several profit centers. These profit centers give way to effectively examine performance.

In addition to this they have a strategic planning and allocation processes that look into the future over a two or three year cycle. The vision is clear allowing for employees and stakeholders to understand where Loam stood and where they were heading In the future. Our second avenue Is Human Capital; let’s start from the beginning again. First, Is Loam’s Human Capital valuable? Their development process of employees proved to be a benefit. Recruiting at the top schools and taking the candidates and moving them around so they could experience all aspects of the business.

They were continually exposed to new product or territory. This lead to employees being wise in more than one aspect of the business. They were all encouraged to work independently and be entrepreneurial. Is HER rare at Loam? They have gone out of their way to train a group AT employees to De part AT tenet GA IP program. I Nils Is tenet Toronto line, SO when they have a new start up one of these well seasoned managers is able to go in and breed company culture and awareness into the local recruits. Is it hard to imitate? The time that is invested into their group of managers is uncanny and has proven to be effective.

The majority of employees that made it through the extensive training stayed for a long time. People are giving opportunities they wouldn’t have been able to achieve so early in their careers’. Lastly are they organized in a way to use it? The company developed this strategy as time went on because they saw the need to be efficient in multi countries all at the same time. They implemented this strategy based on the needs of the business and it has served them well. Summing up Loam’s core competencies shown through the VIREO framework confirms that they have a competitive advantage.

Ill. Another growth opportunity could come from expanding into different kinds of raw materials that need to be cultivated and sold. Since they have a proven track record in Human Capital and building a simple but effective Supply Chain – Could this be a good fit for Loam as growth potential? Looking into sourcing and emerging into existing businesses will not allow them to have the amount of capital gain they were able to capture in the agriculture market years ago. Resources have become more scarce as well as larger competitors have already infiltrated these commodities.

They will have to examine how efficiently and quickly will they be able to manage risk at each stage off new supply chain. They will also need to recruit for this new birth into these industries. MBA grads are now less likely to up root and move around where the company needs them. They are going to work for well know companies. This will require Loam to adapt their HER department to these new ideals people are striving for. This is one option but I believe it will take years to make this proficient and profitable. Their competitors in these markets will have a definite competitive advantage over them.

Second idea would be for Loam to produce their own food and beverage brands, UT how do they maintain this without creating a conflict with customers and suppliers? If customers think they are being pushed into the background so Loam can fund their own brands they will believe this is a conflict of interests. Do they push forward and try to become a top brand? They have the resources for the supply of goods needed to produce branded products. It is risky because if they can’t make their brand a major player and loose customers in the process they will be hurting their current business model.

To lose market share and own a dying brand name won’t look so attractive. Trying to be too many things to many people will lead to a loss of a competitive advantage. Lastly M activities could lead to growth potential. This has to be approached the right way with the right partners. Jumping into bed too early without fully exploring the deal could really hurt Loam’s reputation. They have a system set up to evaluate such deals but are they focusing on the right parameters. Can they explode into a new industry or put together a new concept to streamline an already existing process.

There could be endless ideas and or possibilities here. The focus has to be n creating value and adding profit to their bottom line. IV. I believe that trying to expand into new markets has the best potential for growth while being able to maintain their competitive advantage. This will allow the company to retain their strength Witt HER Wendell learning a new Dustless. I nee wall De addle to move slowly to learn how the supply chain will work for another commodity. I do think that this will be a long time coming. Being able to keep such tight margins as they have in the past will have to be learned for different markets. V.

In order for a firm to maintain a nominative advantage it’s apparent that the firm will need to continue to develop strategies that will add value as time goes on. Core competencies must be instilled deep into the company and continuously fostered or they won’t let the company maintain a competitive advantage. Working through the BRIO framework allows for a company to be evaluated on an even playing field. Making sure that a company can meet all the requirements is not an easy feat. Loam has done a great Job and will have a prosperous future in which ever direction it chooses to head. strength welt HER Wendell learning a new Dustless.