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CIPS Exam L6M9 Topic 1 Question 11 Discussion

Actual exam question for CIPS's L6M9 exam
Question #: 11
Topic #: 1
[All L6M9 Questions]

When would an organisation use a VRIO analysis?

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Suggested Answer: A

VRIO analysis helps an organisation identify internal resources that give it a competitive advantage.

VRIO stands for Value, Rarity, Imitability, Organisation---factors that determine whether a resource can sustain a competitive edge.

It does not focus on benchmarking (C) or performance monitoring (B).

(LO 2.2, See p.103)


by Angella at Jul 07, 2025, 10:46 AM

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Hester
21 days ago
B) To monitor performance of the operations department against predetermined criteria. Nah, that's not what VRIO is for. It's all about those precious internal resources.
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Daisy
10 days ago
B) Yeah, VRIO helps us figure out what makes us stand out from the competition.
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Paulina
13 days ago
A) To identify internal resources that provide competitive advantage
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Sabrina
25 days ago
I see, option C could also be a valid reason to use VRIO analysis to see how we compare to others in the market.
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Valentin
28 days ago
D) To create a vision and mission statement for the organisation. Haha, that's a bit of a stretch. VRIO is more about the present, not the future direction of the company.
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Thaddeus
16 days ago
B) To monitor performance of the operations department against predetermined criteria
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Natalya
22 days ago
A) To identify internal resources that provide competitive advantage
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Shawnna
29 days ago
C) To benchmark the organisation against similar organisations in the market
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Juliana
1 months ago
I think option A makes sense because VRIO analysis helps in understanding the internal strengths of the organization.
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Jolene
1 months ago
A) To identify internal resources that provide competitive advantage
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Man
1 months ago
C) To benchmark the organisation against similar organisations in the market. That's a good idea, but it's not the primary purpose of VRIO analysis.
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Cyndy
25 days ago
C) To benchmark the organisation against similar organisations in the market.
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Cyndy
28 days ago
A) To identify internal resources that provide competitive advantage.
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Alyce
2 months ago
A) To identify internal resources that provide competitive advantage. This is the correct answer, VRIO analysis is all about evaluating the internal resources of the organization.
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Johana
21 days ago
B: That's true, it helps organizations understand their strengths and weaknesses.
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Emile
28 days ago
A: VRIO analysis is important for identifying internal resources that give a competitive edge.
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Sabrina
2 months ago
When would an organisation use a VRIO analysis?
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