Advanced Strategic Management Lecture Notes
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What is a primary advantage of Tesla's focus on vertical integration?

  • Slower product development
  • Increased reliance on external suppliers
  • Expansion into the mass market
  • Improved quality control (correct)

    • What strategy did Tesla leverage to minimize competition in its early days?

  • Outsourcing battery production
  • Targeting the low-cost segment of the market
  • Focusing on a high-performance EV segment (correct)
  • Manufacturing conventional vehicles

    • Which of the following best describes Tesla's learning approach in vehicle development?

  • Adopting a fixed design process for all models
  • Slow and incremental improvements based on market research
  • Completely relying on third-party feedback
  • Rapid iteration cycles driven by data from its fleet (correct)

    • What was a notable outcome of Tesla's decision to make its patents publicly available?

    <p>Expansion of the EV ecosystem and market demand</p> Signup and view all the answers

    Which of the following is a potential risk associated with Tesla's open patent decision?

    <p>Loss of competitive advantage to other companies</p> Signup and view all the answers

    How does Tesla’s innovative culture relate to its market strategy?

    <p>It supports rapid innovation while targeting niche markets</p> Signup and view all the answers

    What strategic rationale underpins Tesla's approach to sharing patents?

    <p>To foster market growth while maintaining leadership in technology</p> Signup and view all the answers

    What initial business strategy allowed Tesla to avoid direct competition with established automakers?

    <p>Focusing on a premium electric vehicle segment</p> Signup and view all the answers

    What is a key distinction between creating shared value and corporate social responsibility?

    <p>Creating shared value aims to enhance business value while addressing social issues.</p> Signup and view all the answers

    Which of the following is an example of redefining productivity in the value chain?

    <p>Reducing the environmental impact of packaging materials.</p> Signup and view all the answers

    How do social entrepreneurs differ from traditional businesses?

    <p>They often respond more rapidly to societal needs.</p> Signup and view all the answers

    What is a strategic approach that businesses can utilize to address societal needs?

    <p>Addressing societal needs through innovative products and services.</p> Signup and view all the answers

    What does the Value Stick Framework emphasize?

    <p>Finding a balance between profit margins and social responsibility.</p> Signup and view all the answers

    What are supportive industry clusters aimed at improving?

    <p>Efficiency and collaboration among suppliers.</p> Signup and view all the answers

    In the context of social good, what is the main purpose when designing business value?

    <p>To enhance efficiency while promoting social benefits.</p> Signup and view all the answers

    What is a significant challenge faced by NGOs compared to businesses?

    <p>Limited resource availability in addressing issues.</p> Signup and view all the answers

    What is the primary benefit of having a clear reporting line in a matrix structure?

    <p>Improved profitability and efficiency</p> Signup and view all the answers

    What potential drawback arises from the lack of clarity in reporting relationships within a matrix structure?

    <p>Reduced effectiveness due to competing authorities</p> Signup and view all the answers

    How should team members manage communications in a matrix structure with unclear reporting?

    <p>Consult both managers for their respective areas</p> Signup and view all the answers

    What strategy can improve coordination in a matrix-managed organization?

    <p>Streamline authority to a single boss</p> Signup and view all the answers

    Why is it crucial to fit choices together in a matrix organization?

    <p>To align with the organization's strategic purpose</p> Signup and view all the answers

    What does the concept of Creating Shared Value (CSV) emphasize in contrast to Corporate Social Responsibility (CSR)?

    <p>Joint company and community value creation</p> Signup and view all the answers

    What is a significant strength of Creating Shared Value (CSV)?

    <p>It provides clarity on responsible behavior for corporations</p> Signup and view all the answers

    Which of the following signifies a limitation of Corporate Social Responsibility (CSR)?

    <p>Its impact is restricted by the corporate footprint</p> Signup and view all the answers

    Which statement best describes information asymmetry?

    <p>One party has greater knowledge than the other</p> Signup and view all the answers

    How does CSV differ in its approach to corporate responsibility compared to CSR?

    <p>CSV aligns company budget with societal benefits</p> Signup and view all the answers

    Which factor is NOT associated with CSR?

    <p>Corporate compliance with social goals</p> Signup and view all the answers

    What does the term ‘critical assessment of CSV’ imply regarding its weaknesses?

    <p>It fails to recognize the conflict between social and economic goals</p> Signup and view all the answers

    What is one of the benefits of having strong local clusters for companies?

    <p>Greater supply chain efficiency</p> Signup and view all the answers

    What is a benefit of specialization within a team?

    <p>Enhances expertise and efficiency</p> Signup and view all the answers

    What is indicated by a large span of control for a manager?

    <p>Greater oversight of company information and coordination</p> Signup and view all the answers

    Which statement reflects the implications of managing a narrow span of control?

    <p>It allows the manager to provide close guidance on complex tasks</p> Signup and view all the answers

    What does boundary spanning primarily involve?

    <p>Connecting across silos through horizontal coordination</p> Signup and view all the answers

    How does horizontal communication benefit an organization?

    <p>Encourages innovation and diverse knowledge sharing</p> Signup and view all the answers

    Which of the following accurately describes a potential challenge of specialization?

    <p>It may increase Silos and reduce operational efficiency</p> Signup and view all the answers

    What role does a boundary spanner play in an organization?

    <p>Bridges gaps between internal and external stakeholders</p> Signup and view all the answers

    What does an effective span of control allow for in a managerial role?

    <p>Balanced oversight with appropriate delegation</p> Signup and view all the answers

    What is one benefit of effective stakeholder management in a business context?

    <p>It enhances adaptability through flexible management.</p> Signup and view all the answers

    What is a characteristic of the gold mining industry mentioned?

    <p>There are few monetary rewards for responsible mining.</p> Signup and view all the answers

    What do horizontal inequalities refer to?

    <p>Differences in asset distribution across identity groups.</p> Signup and view all the answers

    Which example illustrates intentional corporate activism?

    <p>Corporate donations to historically Black colleges and universities.</p> Signup and view all the answers

    What is one challenge mentioned in relation to corporate activism?

    <p>It can result in a polarized political environment.</p> Signup and view all the answers

    In the context of corporate activism, what does unintentional activism mean?

    <p>Capitalizing on enhanced market conditions without planning.</p> Signup and view all the answers

    How do the relationships among firms relate to corporate activism?

    <p>They can be both positive and negative simultaneously.</p> Signup and view all the answers

    What role does stakeholder engagement play in achieving financial goals?

    <p>It can provide essential insights that enhance efficiency.</p> Signup and view all the answers

    Study Notes

    ### Advanced Strategic Man Lecture Notes

    •  Fundamental Concepts: - Win War: a set of rules for decision-making in any situation (Sun Tzu) - Corporate Planning: determining long-term goals and objectives, adopting courses of action, allocating resources to fulfill goals (Alfred Chandler) - Uncertainty and empowerment: enabling organizations to achieve desired results in an unpredictable environment (Peter Drucker) - Competitive Advantage: being different in activities to deliver a unique mix of value (Michael Porter) - Turbulence and adaptation: a pattern in a stream of decisions (Henry Mintzberg)

    ### SWOT Analysis & Current Trends

    •  Current Trends in Strategic Management: - Strategy in a Digital World: digital strategy, digital business models - Managing Growth & Innovation: innovation, external growth, entrepreneurial strategy - Social Forces: sustainability, CSR, creating shared value, measuring impact - Revisiting Organizational Design: functional hierarchies, open strategies

    ### Porter's 5 Forces

    •  Threats of new entrants
    •  Bargaining power of suppliers
    •  Bargaining power of buyers
    •  Threat of substitute products or services
    •  Rivalry among existing competitors
    •  A framework looking at industry (non-profit thinking can also apply), structured approach
    •  Examples of failed disruptive innovation, like Kodak, Polaroid, Nokia, Blackberry, when rivalry increases, the market is less profitable
    •  Internal context, based on firm's assets or what a firm has (resources), and what the firm does (capabilities), specifically noting the competencies it performs well

    ### Strategic Difficulty

    •  Imitation is costly.
    •  Causal ambiguity: unknown reasons why something works
    •  Social complexity: replication of personal connections is impossible
    •  Historical conditions: past events can't be duplicated

    ### Levels of Strategy

    •  Corporate level: high-level initiatives/projects pushing the business forward
    •  Business level: establishing how to get from where the company currently is to the desired future state, configuring and capturing values
    •  Functional level: execution of strategies at operational levels

    ### Types of Scope

    •  Vertical Scope
    •  Product Scope
    •  Geographical Scope
    •  Digital Scope (emerging)

    ### Value Creation & Capture

    •  Value creation: determining the size of a business pie
    •  Value capture: how much a company gets from a value pie
    •  Value Configuration: how the value proposition is structured from a combination and selection of resources and activities (linkages)

    ### Trends in Digital Strategic Management

    •  Al becoming accessible
    •  Increased hypercompetition
    •  E-commerce and Food Tech growth
    •  Discount bubbles, high customer churn
    •  Consolidation
    •  Merger mania of 2021 and Crowd mania of 2011
    •  Growth in sustainable investments outpacing traditional investments

    ### Multi-Sided Platforms (MSPs)

    •  Strategic decisions: number of sides, design, pricing, governance
    •  Digital business models: place, space, content, experience, platform

    ### Pipeline vs. MSP Business model

    •  One versus numerous participant interactions in a value exchange
    •  Focus on supply-facing versus demand-facing model
    •  Direct interactions between different groups in MSP

    ### MSP Cross-Side Network Effects

    •  High entry barriers, which become larger when the amount of participants grows
    •  Network effects that can lead to a decline

    ### Strategic Decisions for MSPs

    •  How many sides/users should there be?
    •  How to structure the users' interactions?
    •  What should the pricing model be?
    •  What rules govern the MSP?

    ### Costs/Rules in Governance

    •  Loss of quality due to insufficient transparency and information
    •  Presence of too much competition
    •  Lack of complementary products or services

    ### Digital Strategy and Al in Organizations

    •  Resource and need matching on platforms
    •  Value chain to digital ecosystem
    •  Digital scope in corporate strategy
    •  Al changes tasks and job descriptions
    •  Generation tasks more exposed to analysis than analysis
    •  Algorithmic use should be moderated
    •  Al in strategy: diagnose, search, choose, and monitor

    ### Digital Value Creation Across Levels

    •  Resource configuration in a digital world
    •  Prototypes (firm as an integrator, collaborator, transaction enabler, bridge)
    •  Microprocesses of resource configuration
    •  Continuous Testing
    •  Resource Crowdsourcing
    •  Sorting
    •  Prospecting
    •  Grafting
    •  Streamlining
    •  Digital value creation: four configurations
    •  Ecosystems
    •  Multi-sided platforms
    •  Firm as a transaction enabler

    ### Scale and Scope Growth

    •  Identifying and matching needs and resources
    •  Resource sourcing (e.g., Airbnb, Uber, Bridge, ParkEase)
    •  Observing and synthesizing customer needs
    • Iterative testing (channels, A/B testing examples like ExpatEase)

    ### Value Creation in Value Chains

    •  Disruption due to new technologies (new entrants)
    •  Bargaining power of suppliers and buyers
    •  Rivalries among competitors
    •  Threat of substitute products or Services
    •  Threat of complement products or services

    ### Digital Services and Data Sampling

    •  Capturing value in a digital world: lightbulb example
    • Different scope types
    • Vertical, product, geographical, digital

    ### Al in Organizations

    •  What tasks Al does that humans do
    •  High-paying, difficult to learn, skill-based tasks

    ### Strategy and Decision-Making

    •  Classical framing (diagnosis, search, choosing, commit, monitor, evolve)
    •  Al strategy (diagnosis, search, choosing, commit, monitor, evolve)

    ### Tesla's Strategy (open patent decision)

    •  Battery technology advantages
    •  Software expertise (continuous updates, AD)

    ### Tesla's Rationale for Strategy

    •  Vertical integration focus
    •  First-mover advantage in high-end market segment
    • Innovation and learning curve (speed of innovation)
    • Making advantage against existing automakers

    ### Stakeholder Management

    •  Problem of value creation, ethics, and managerial mindset
    •  Connections between capitalism and ethics
    •  Values creation by businesses
    • Challenges to stakeholder management
    • Important to manage stakeholders effectively
    • How stakeholder management can enhance corporate performance

    ### Corporate Activism

    •  Actions taken by companies in responding to social issues
    • Intentional vs unintentional activism, types of activism
    • Market-based bridging of stakeholder groups
    • Concerns for corporate social responsibility

    ### Measuring Impact

    •  Sustainability
    • Measuring ecological balance
    • ESG standards for investment consideration

    ### Organizational Design

    •  How organizations restructure
    • Organizational design as a tool in company strategy
    • Communication between channels
    • Hierarchy shapes (flat vs tall)
    • Choice of technology & HR decisions
    • Forms of organization (functional roles)
    • Functions of managers, coordination, conflict resolution, etc
    • Execution monitoring and the pressure to redesign task groupings in departments

    ### Boundary Spanning

    • Connecting across silos (cross departmental communication)
    • Importance of internal & external customer feedback
    • Effective communication and coordination in matrix organizations

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    Advanced Strategic Man. Lecture 1 (complete) PDF

    Description

    Explore the key concepts in advanced strategic management including decision-making, corporate planning, and competitive advantage. This quiz covers insights from prominent thinkers like Sun Tzu, Alfred Chandler, and Michael Porter, along with current trends impacting the field today. Test your understanding of SWOT analysis and strategies for growth in a digital world.

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