Pearson PLC is the leading education and book-publishing company in the world, and it is headquartered in London. Since the establishment of the firm, various management teams have been focusing on adopting the most effective approaches to realise excellent performance outcomes. Organisational capability can be defined as the ability of a firm to utilise unique competencies to obtain the desired results in a particular field.
In the context of Person PLC, it is notable that the management concentrates on using the firm’s weaknesses and strengths to exploit opportunities and deal with threats in the external business surroundings. In order to understand and evaluate the capabilities of the company, it is important to use SWOT analysis and the VRIO framework techniques.
The giant book-publishing firm is typified by three main strengths that enable it to produce unique results. First, it has a sound base of finances, which are critical in enabling it to implement many projects that are related to production of books worldwide distribution. Second, the company has presence in about sixty countries across the world, which makes it have the best channels of product distribution. Third, it is notable that the management adopts scholastic strategies in relation to publishing. The extent to which scholastic strategies are used correlates with the levels of corporate responsibility.
On the other hand, the business establishment is exemplified by some weaknesses. For example, recently, there have been mergers in the publishing industry that might result in negative long-term impacts on the business enterprise. In addition, the emergence of online platforms of book advertising implies that Pearson PLC could test and execute alternative ways of advertising and publishing with the aim of achieving broader markets. The firm can use its asset, financial and corporate strengths to take advantage of the opportunities that are evident in the external environment.
For instance, the management can focus on using acquisitions and mergers to attain more market shares and reduce production and operation costs. Also, the firm has an opportunity to publish in different languages, which can result in better sales. Finally, the firm can utilise the opportunity in relation to expanding its business base, which can be achieved by increasing online ventures, among others. The management can handle the threats that typify the business establishment using strengths and opportunities. Some of the threats that should be tackled include copyright infringement issues, proliferation of research based on the internet and pressure from subscribers.
The VRIO framework can be applied to evaluate how the capabilities and resources of Pearson PLC can lead to competitive potential. The aspect of value in relation to the company shows that it can take advantage of opportunities and/or neutralise external threats.
However, the control of the capabilities of Pearson PLC is not handled by a relative few. Thus, rarity is low. In addition, it is important to note that there is a high level of imitability, which implies that other firms can imitate strategic approaches adopted by the firm with a lot of ease. That notwithstanding, the company is ready and able to make use of the capabilities. This indicates that the giant multinational organisation is typified by relatively high levels of organisation.
Thus, it is evident that Pearson PLC has capabilities that have the potential to lead to excellent business outcomes. The management should focus on using approaches that can help the firm to be successful in the competitive business world.