Strategic Management and Business Strategy

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Chap 2
1. Compare and contrast the characteristics of the operational, managerial, and executive levels of an organization. Interactions with customers
* Functional managers
* Monitor and control operational-level activities
* The president, CEO, vice presidents, board of directors

2. Compare and contrast automating and learning
Automating: Doing Things Faster
Organizational Learning: Doing Things Better
Supporting Strategy: Doing Things Smarter

3. Discuss the five primary competitive forces that analyze the competition within an industry.

4. Describe five general types of organizational strategy.

5. Describe competitive advantage and list six sources.
Best-made product
Superior customer service
Lower costs than rivals
Proprietary manufacturing technology
Shorter development/test lead times
Well-known brand name
More value for the money
6. Describe the global business strategy, its strength, its weakness, and how it affects the flow of control information Centralized organization with standardized offerings across markets Strengths: standardized product offerings allow achieving economies of scale Weakness: inability to react to local market conditions

Appropriate use: homogeneous markets

7. Describe the home replication business strategy, its strength, its weakness, and how it affects the flow of control information

* International business as an extension of home business * Strengths: focus on core competencies in home market
* Weakness: inability to react to local market conditions * Appropriate use: homogeneous markets

8. Describe the multidomestic business strategy, its strength, its weakness, and how it affects the flow of control information Federation of associated business units; decentralized
Strengths: ability to quickly react to local conditions
Weakness: differing product offerings limit economies of scale, and limited inter-unit communication limits knowledge sharing Appropriate use: very heterogeneous markets

9. Describe the transnational business strategy, its strength, its weakness, and how it affects the flow of control information Some aspects centralized, others decentralized; integrated network Strengths: can achieve benefits of multidomestic and global strategies Weakness: difficult to manage; very complex

Appropriate use: integrated global markets

10. What are the primary activities and secondary activities of value chain model?

11. Explain the organizational requirements for innovation. Process requirements—the organization has to be willing to do whatever it takes to implement the change. Resource requirements—need to have the human capital necessary for successful deployment of the system Risk tolerance requirements—organizational members must have appropriate tolerance of risk and uncertainty. 12. Define disruptive innovation and how it leads to the innovator's dilemma. a. New technologies, products, or services that eventually surpass dominant technologies i. Online vs. brick-and-mortar retailing

ii. Automobiles vs. horses
iii. CDs vs. records
iv. MP3 vs. CDs
b. Undermine effective management practices

13. Why is successful application of innovative technologies and systems often difficult?

14. Describe the steps of e-business innovation cycle.
* Choosing Enabling/Emerging Technologies
* Process/ group devoted to looking for emerging IT
* Matching Technologies to Opportunities
* Most promising new technology matched with current economic opportunities * Executing Business Innovation for Growth
* Stage at which the change is actually implemented
* Assessing Value
* Value created for customers and internal operations assessed

15. Define freeconomics, and discuss the approaches for applying freeconomics to various industries. * Freeconomics—The leveraging of...
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