Podcast
Questions and Answers
What type of strategy is characterized by a centralized control and aligns with a Functional Structure?
What type of strategy is characterized by a centralized control and aligns with a Functional Structure?
Which strategy relies on a Matrix Structure to balance local responsiveness with global coordination?
Which strategy relies on a Matrix Structure to balance local responsiveness with global coordination?
Which of the following strategies is most likely to involve decentralized decision-making at the local level?
Which of the following strategies is most likely to involve decentralized decision-making at the local level?
How does a Global Strategy primarily approach product offerings?
How does a Global Strategy primarily approach product offerings?
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What is the primary focus of a Localization Strategy in multinational companies?
What is the primary focus of a Localization Strategy in multinational companies?
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Which companies are cited as examples of utilizing a Transnational Strategy?
Which companies are cited as examples of utilizing a Transnational Strategy?
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Which strategy allows for different competitive approaches in various countries to meet diverse market conditions?
Which strategy allows for different competitive approaches in various countries to meet diverse market conditions?
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Which structure is typically associated with the Localization Strategy?
Which structure is typically associated with the Localization Strategy?
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What is a major drawback of philanthropic CSR?
What is a major drawback of philanthropic CSR?
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Which company exemplifies the International Strategy in international business?
Which company exemplifies the International Strategy in international business?
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Why might international strategies be less effective in markets with cultural differences?
Why might international strategies be less effective in markets with cultural differences?
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How does CSV differ fundamentally from philanthropic CSR?
How does CSV differ fundamentally from philanthropic CSR?
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What method did Starbucks employ to enhance its supply chain and profitability?
What method did Starbucks employ to enhance its supply chain and profitability?
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What is a characteristic feature of companies using an International Strategy?
What is a characteristic feature of companies using an International Strategy?
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Which of the following best describes philanthropic CSR?
Which of the following best describes philanthropic CSR?
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What pressure do companies face when employing an International Strategy?
What pressure do companies face when employing an International Strategy?
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What is a key characteristic of the Product-Team Structure?
What is a key characteristic of the Product-Team Structure?
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When should a firm consider adopting a Matrix Structure?
When should a firm consider adopting a Matrix Structure?
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What do global strategies in consumer electronics benefit from?
What do global strategies in consumer electronics benefit from?
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What defines the organizational structure in a company?
What defines the organizational structure in a company?
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What is a primary reason incumbent firms prefer incremental innovation?
What is a primary reason incumbent firms prefer incremental innovation?
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Which strategy places emphasis on global efficiency, cost control, and product uniformity?
Which strategy places emphasis on global efficiency, cost control, and product uniformity?
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What is a primary motivation for using the Product-Team Structure?
What is a primary motivation for using the Product-Team Structure?
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How does incremental innovation affect entry barriers for new firms?
How does incremental innovation affect entry barriers for new firms?
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Which of the following is a strategic reason for firms to pursue incremental innovation?
Which of the following is a strategic reason for firms to pursue incremental innovation?
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Which of the following is NOT a characteristic of the Matrix Structure?
Which of the following is NOT a characteristic of the Matrix Structure?
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Which of the following best describes a company pursuing a Transnational Strategy?
Which of the following best describes a company pursuing a Transnational Strategy?
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What is a major difference between incumbent and newcomer firms regarding innovation?
What is a major difference between incumbent and newcomer firms regarding innovation?
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Which organization's structure tends to favor incremental innovation?
Which organization's structure tends to favor incremental innovation?
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What economic incentive do incumbent firms have regarding incremental innovation?
What economic incentive do incumbent firms have regarding incremental innovation?
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How does radical innovation impact an incumbent firm's position?
How does radical innovation impact an incumbent firm's position?
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How did Amgen achieve a competitive advantage in the pharmaceutical industry?
How did Amgen achieve a competitive advantage in the pharmaceutical industry?
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Study Notes
Incremental Innovation
- Incremental innovation builds on existing knowledge, improving existing products/services.
- Targeted at existing markets using existing technologies.
- Strategic reasons: Incumbents are part of established networks (suppliers, buyers, complementors), impacting decision-making. Radically innovative approaches disrupt these networks. Newcomers can freely innovate without these concerns.
- Economic reasons: Incumbents have incentives to protect market share using incremental innovation to maintain high entry barriers. Radical innovation threatens market dominance. New companies use radical innovation to overcome these barriers.
- Organizational reasons: Incumbent firms favor incremental innovation to fit established organizational structures. New entrants may not have these existing structures.
CSR vs. CSV
- Philanthropic CSR (donating to charity) lacks a long-term business/social vision.
- It's not aligned with the company's long-term objectives or activities.
IB Strategies and Organization Structures
- International Strategy: Centralized control at headquarters, transferring core competencies to foreign markets with minimal adaptation. Suitable for markets with low local responsiveness needs and low cost pressure.
- Transnational Strategy: A blend of global and multidomestic approaches. Adapting to local needs while maintaining global consistency.
- Multinational (Localization) Strategy: Varying products/services to match local conditions and preferences. Decentralised decision making.
- Global Strategy: Standardized products/services globally, with strong headquarters control. Suitable for markets with low responsiveness needs and high cost pressures.
Organizational Structures
- Product-Team Structure: Decision-making around product lines instead of geographical locations. Focuses on global product development, manufacturing, and marketing. Used when global consistency is essential.
- Matrix Structure: Overlays functional or product structures with geographical divisions. Suitable for complex, demanding global environments requiring both coordination and local responsiveness. Used in transnational strategies.
- Functional Structure: Simple structure with department specialization. General manager in charge of each department. Common foundation for various setups.
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Description
Explore the nuances between incremental innovation and corporate social responsibility (CSR). This quiz delves into the strategic, economic, and organizational factors that influence these approaches and their impact on long-term business objectives. Test your understanding of how existing firms innovate compared to new entrants.
