Page 6 - USI Newsletter No.94
P. 6

Chairman                                                                              董事長專訪
                                                                                                                                                                                                                                     94
          Interview                                                                                                                                                                                                               NO.94
                                                                                                                                                                                                                                  NO.
          Optimizing Limited Resources



          to Achieve Maximum Efficiency





          Author: Chairman / Jeffrey Chen



                   ecently, I have been studying an article on the Resource-Based View (RBV) of the firm in Harvard
          R
                   Business Review, titled �Competing on Resources�. It was highly inspiring, and here I would like to
                   share some of its key concepts with you.


          Resource-Based View (RBV) is an economic-based    etc. Therefore, building a company's strategy on                          existing resources, we must remain vigilant and    deciding not to pursue every opportunity can prevent
          method used to assess a firm's resources. It provides   resources that the company cannot control may                        adjust strategies accordingly. Understanding and   resource waste and serve as a prerequisite for success.
          a scientific approach for evaluating whether a firm   hinder profit capture.                                                 leveraging individual's strengths, putting them at
          possesses resource advantages that can contribute to                                                                        suitable positions and utilizing the most of resources   In USI's daily operation, we need to start with
          long-term development.                            The Test of Substitutability                                              are keys to business operations. The concept of    resource assessment, determining whether a
                                                            The market is constantly searching for cheaper                                                                               particular resource is effective or conducive to our
          Having resources of strategic value is the crucial   alternatives, and the crux of the matter is whether a                  "utilizing the most of resources" involves optimizing   future development. Then, consider how to make
                                                                                                                                      limited resources to achieve maximum efficiency.
          determinant for achieving sustainable business    company  owns  the  resource  that  underpin  a                           Only then can a company maintain invincible in the   better business decisions by utilizing that resource.
          operations. The article mentions that resources with   company's ability to deliver unique and unparalleled                 fierce market competition.                          As USI's global presence has reached today's scale, it
          strategic value can be assessed through the following   products or services.                                                                                                  is the time to carefully examine whether our past
          five dimensions:                                                                                                             For USI, it is crucial to recognize business resources are   strategies are still applicable to future development―
                                                            The Test of Competitive Superiority                                       finite. Our production capacity, financial resources,   "DON'T use yesterday's strategies to fight tomorrow's
          The Test of Inimitability                         Core competitiveness is not self-defined, but rather                      and teams' time are all limited and valuable.      war." Instead, We should contemplate how to
          Inimitability is at the core of value creation as it limits   defined by the harsh external market. How do you              Therefore, effectively allocating resources and
          competition from rivals and generates sustainable   compare to your competitors? What advantages do                         maximizing efficiency are the management wisdom    enhance  resource  utilization  while  making
          profits. However, inimitability does not last forever,   you have? Is the strategic resources established by the            and key skills that USI team must possess. Let's   appropriate strategic adjustments. We need to
          as competitors will eventually find ways to replicate   company superior to those of the competitors?                        consider a simple scenario. When we choose to      leverage our existing resources advantages, mobilize
          it.                                               Additionally, for some companies, core competitiveness                    allocate resources to serve Customer A, we may not   our proactive initiative, promptly adjust resource
                                                            lies in a combination of resources. Although each                                                                            allocation and business models, explore new
          The Test of Durability                            individual skill may not be outstanding on its own,                       have additional resources to serve Customer B or   channels for resources to keep the competitive edge.
          The more long-lasting a resource is, the more     when combined, they form a unique and competitive                         other potentially more profitable customers. In    Only in this way can USI achieve the long-term vision
          valuable it becomes. However, the value of resources   advantage.                                                           reality, Customer B or other customers may bring   of sustainable operation in the unpredictable market
          depreciates quickly over time. Especially, technological                                                                    greater profits to USI than Customer A. Another    environment.
          knowledge in a fast-moving industry is a rapidly   In today's rapidly evolving world, where technology                      scenario is that even though USI currently has 28
          depleting asset. Therefore, building long-term    is advancing at a rapid pace and products are                             global production sites, each site has its own capacity   Lastly, through today's sharing, I expect that USI
          strategic plans relying solely on a single resource   constantly being introduced, the value of resources is                limitation. Therefore, we need to make trade-offs   team could gradually develop the management
          advantage carries risks.                          easily eroded by time and competition. Old resources                      and propose solutions to customers that may align   wisdom of resource perspective. While working with
                                                            gradually depreciate, losing their core advantage. In                     better with our overall strategy and interest. It is   dedication, it is important to enhance our overall
          The Test of Appropriability                       such a dynamic environment, it is crucial to maintain                     important to engage in discussions with customers   vision and tackle work challenges strategically and
          The value generated by strategic resources does not   sharp insights and foster innovative thinking. We                     rather than blindly satisfying their demands for   intelligently. By doing so, we can achieve greater
          always flow entirely towards the company. It may   need to continuously monitor market evolution and                        capacity and site. Similar situations arise in multiple   efficiency and productivity, accomplishing more with
          flow to a host of business participants, including   constantly upgrade the value of resource, and actively                 actual operations of the company. Sometimes,       less effort.
          customers, distributors, suppliers, employees and
                                                            explore new opportunities. When dealing with                              strategically withdrawing from certain activities or



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