Question

Which of the following statements is correct about​ Barney's VRIO framework​ analysis?

A.VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a​ firm's competences:​ Value, Rareness,​ Imitability, and Organization.
B.VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a​ firm's competences:​ Value, Resources,​ IFAS, and Organization.
C.VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a​ firm's competences:​ Value, Resources,​ Intensity, and Organization.
D.VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a​ firm's competences:​ Value, Rareness,​ Industry, and Organization.
E.VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a​ firm's competences:​ Value, Resources,​ Imitability, and Organization.

Answer 1

The correct statement about Barney's VRIO framework analysis is that it proposes four questions to evaluate a firm's competences: Value, Rareness, Imitability, and Organization.

Step-by-step explanation:

The correct statement about Barney's VRIO framework analysis is:

VRIO framework of analysis is a type of analysis that proposes four questions to evaluate a firm's competences: Value, Rareness, Imitability, and Organization.

The VRIO framework is used to assess a firm's internal resources and capabilities to determine if they can be a source of sustained competitive advantage. The four questions of the VRIO framework are:

1. Is the resource or capability valuable?
2. Is the resource or capability rare?
3. Is the resource or capability difficult to imitate?
4. Is the firm organized to capture the value of the resource or capability?

By evaluating a firm's competences using these questions, the VRIO framework helps identify the resources and capabilities that can give a firm a competitive edge.