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What led Zuckerberg to leave Harvard to focus on TheFacebook?
Which factor was crucial for Zuckerberg in the early development of TheFacebook?
Where did Zuckerberg initially move TheFacebook's headquarters?
How much initial funding did Zuckerberg secure for TheFacebook?
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Which notable figure was involved in the early investment of TheFacebook?
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What was a major criticism about Facebook's Beacon feature?
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How did Facebook initially attract advertisers?
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Which feature introduced in 2007 allowed businesses more opportunities on Facebook?
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What demographic shift did Facebook experience with its acquisitions?
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Which sign indicates that Facebook may have reached a stage of market maturity?
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What concept does Horizon 3 primarily involve?
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What potential impact did the acquisition of Oculus have on Facebook?
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What remains uncertain about the Metaverse for Facebook?
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What is primarily summarized in Chapter 5?
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Which of the following questions addresses the purpose of strategy?
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What are the two simplified choices that strategy ultimately revolves around?
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Which level of strategy is distinct from corporate strategy?
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What critical stage of the strategy process is introduced in the chapter?
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What term is used to describe transformational objectives as outlined by Collins & Porras?
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How does the chapter describe the relationship between leadership and strategy?
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What aspect of organizational strategy is emphasized in today's digital age?
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What role do non-executive boards typically play in the strategy process?
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What significant feature was introduced to Facebook between 2003 and 2006?
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What was Mark Zuckerberg's initial motivation for creating Facebook?
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Which demographic did Facebook initially target for user growth?
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What was a major challenge in building Facebook's user base during its early years?
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What significant change occurred in Facebook's user base by the end of 2004?
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How did Facebook's growth trend change by 2006?
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What was a key to Facebook’s future success mentioned in the content?
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What was the first major growth phase for Facebook focused on?
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What did Zuckerberg believe was the most important feature of Facebook?
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What major competitor did Facebook lag behind before overtaking it in 2008?
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What was the primary focus of TheFacebook when it was initially launched?
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Which feature distinguished TheFacebook from Myspace?
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What significant milestone did TheFacebook achieve within 24 hours of its launch at Harvard?
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What prompted the closure of the Facemash application?
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Who collaborated with Mark Zuckerberg to develop TheFacebook?
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What event indicated the taste for social applications among students?
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What notable issue has been associated with Zuckerberg and Facebook's operations over time?
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What was the original purpose of Facemash before it was shut down?
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What is the primary purpose of organizational strategy?
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According to Milton Friedman, what is the sole purpose of a company?
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How does strategy provide focus within an organization?
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What is a common misconception about the term 'strategy' in organizational contexts?
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What aspect of strategy does the passage highlight as essential?
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What is implied about the balance of opinion regarding profit focus in organizations?
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In the context of organizational strategy, how is 'direction' defined?
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What do the terms 'why', 'what', and 'how' represent in strategic planning?
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What best describes the 'shareholder view' of the purpose of a firm?
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Which concept is largely absent from the shareholder view of the firm's purpose?
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What is a primary characteristic of organizational strategy as a field of study?
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Which of the following enhances the necessity for strategy in organizations?
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How has the perception of strategy's primary purpose changed over time?
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In what context is the necessity of strategy questioned?
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Which of the following statements about organizational rivals is true?
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What foundational assumption about strategy is being challenged?
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What was the primary focus of early management science in the early 1900s?
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Which book introduced the concept of corporate strategy in 1965?
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What significant strategy tool was introduced by Henderson in 1968?
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What was a major intellectual contribution to the understanding of strategy in the late 1950s?
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Which concept is NOT associated with the evolution of strategy in the 1960s?
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What characterized the 'strategy heyday' of the late 1960s?
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Which two historical works are roots of modern business strategy?
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During the 2000 to 2010 period, what issue arose regarding contributions to strategy?
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Which work is considered one of the earliest formal texts on strategy?
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What does the Greek term 'strategos' refer to?
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What major evolution in the understanding of strategy was introduced by Count Guibert?
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Who wrote the influential treatise 'On War'?
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What does the term 'strategemata' reflect in its origin?
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Which philosopher is credited with a pivotal ancient work on managing conflicts and winning battles?
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What was the primary focus of early strategy as discussed by the Greeks and Romans?
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What aspect of strategy did the Greeks and Romans primarily emphasize?
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How did Sun Tzu contribute to the understanding of strategy beyond military tactics?
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What did the economic theory of business fail to incorporate during the time strategies were being developed?
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What is one of the four main responsibilities of corporations according to the stakeholder view?
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Which theory assumes that managers may prioritize the interests of the organization over their self-interest?
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How does Social Capital Theory view the role of trust in organizations?
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What is a key criticism of the shareholder model as highlighted by Social Capital Theory?
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What type of obligation involves a firm's choice to engage in philanthropy?
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Which view is considered a progressive alternative to the shareholder view?
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What does stewardship theory promote in an organizational context?
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In which contexts is the stakeholder view particularly accepted?
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Which of the following is NOT one of the responsibilities outlined by Carroll in the stakeholder view?
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What does the term 'shared value' relate to in stewardship theory?
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Study Notes
Overview of Chapter 5: Core Concepts of Organizational Strategy
- The chapter summarizes traditional models of strategic management while addressing their evolution in the context of the Fourth Industrial Revolution (4IR).
- It reviews the history of strategy, including corporate strategy, disruptive innovation, and the concept of the "end of strategy."
- Key questions include the necessity and purposes of organizational strategy, as well as what characterizes effective and ineffective strategies.
Evolution and Purpose of Strategy
- Strategy is defined as choices of "where to play" and "how to win."
- Successful strategy creation involves multiple levels within an organization: corporate, business unit, and functional strategies.
- Organizational strategy must integrate digital awareness but is not synonymous with digital strategy alone.
- The foundational stage of the strategy process involves organizational ideology encompassing purpose, vision, mission, and transformational objectives (BHAGS).
Facebook: Challenges and Commercial Evolution
- Facebook faced initial criticism for features such as Newsfeed and Beacon, raising privacy concerns.
- Despite challenges, Facebook's growth was fueled by its adaptability and responsiveness to user feedback, attracting advertisers through direct customer engagement.
- The introduction of Groups in 2007 created new commercialization opportunities, leading to substantial annual revenue growth.
Strategic Acquisitions and User Demographics
- Strategic acquisitions of Instagram and WhatsApp in the 2010s helped diversify Facebook's user base and shifted demographics towards older users.
- There are signs of maturity within the platform, signaled by a plateau in user growth and a decline in year-on-year revenue.
Future Ventures: Horizon 3 and the Metaverse
- Facebook is exploring the Metaverse, emphasizing augmented and virtual reality, financial technologies, and integrated record-keeping.
- The company acquired Oculus in 2014, indicating early efforts towards the Metaverse, leading to a rebranding as Meta.
- The success of the Metaverse remains uncertain and difficult to predict.
Historical Foundations of Business Strategy
- The concept of strategy has military origins, notably in Sun Tzu's The Art of War, viewed by modern business strategists as foundational.
- The Greeks introduced the term "strategy," relating to leadership and military planning, while Romans expanded the concept to include tactics for success in warfare.
- French military theorists in the late 18th century broadened the definition of strategy to encompass political objectives, not solely military actions.
Significance of Early 20th Century Management
- The early 1900s focused on efficiency and optimizing production systems and operations in industrial contexts, laying groundwork for management science.
- Variations in strategic approaches illustrate the transition from purely military applications of strategy to its relevance in business.### Historical Foundations of Strategy
- Taylor's 1911 book "The Principles of Scientific Management" emphasized efficiency as key to increasing productivity.
- Alfred Sloan at General Motors prioritized metrics and efficiencies over strategic discussions, which were not common in the first half of the 1900s.
Emergence of Modern Strategy Concepts
- Research from the late 1950s laid groundwork for contemporary business strategy, introducing key concepts such as:
- Resource-based view (Newman, 1951; Penrose, 1959).
- Emergent strategy (Lindblom, 1959).
- Positional strategy (Yelle, 1979).
- Chandler (1962) explored the growth of multi-divisional firms post-WWII, analyzing diversification and strategic decision-making.
- Igor Ansoff's 1965 book "Corporate Strategy" was pivotal, introducing the Ansoff matrix and popularizing corporate strategy terminology.
Development of Business Strategy
- Henderson's contributions at the Boston Consulting Group (1960s-70s) significantly shaped business strategy.
- He introduced the experience curve concept in 1966 and the growth-share matrix (BCG matrix) in 1968, categorizing products into "cash cows," "dogs," "stars," and "question marks."
- These innovations marked the transition to a scientific approach in strategy formulation.
Evolution of Strategy Over Time
- Strategy has evolved from military origins (e.g., Sun Tzu, Clausewitz) to a field heavily influenced by business needs.
- The late 1960s saw a surge in strategic publications; however, the 2000s-2010s experienced a flood of mediocre works on strategy.
- Notable contributions include Harvard Business Review's top reads on leadership and methodologies like Lean Six Sigma and Blue Ocean Strategy.
Core Concepts of Organizational Strategy
- Organizational strategy is an emerging field, evolving rapidly alongside technological advancements.
- Existing perspectives largely focus on competitive interactions; however, strategy is also relevant for non-profits and government entities facing different kinds of challenges.
- Modern organizations increasingly value collaboration over confrontation, expanding strategy's purpose beyond mere competitive advantage.
Stakeholder Theory
- The late 20th century saw the rise of stakeholder theory opposing the classic focus on shareholders.
- Scholars like Carroll and Freeman argued that addressing the needs of all stakeholders enhances firm performance.
- Carroll’s four corporate responsibilities:
- Economic: generating profit and shareholder returns.
- Legal: complying with laws and regulations.
- Ethical: considering community impact beyond profits.
- Discretionary: engaging in philanthropy and social responsibility.
Stewardship and Social Capital Theories
- Stewardship theory posits that individuals may prioritize collective interests over self-interest, promoting responsible management.
- This theory highlights cooperation and community responsibilities within firms.
- Social Capital Theory, advanced by Sumantra Ghoshal, critiques traditional views of self-interested behavior, positing that trust and goodwill can enhance performance and mitigate opportunism in organizations.
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Test your knowledge about Mark Zuckerberg and the early development of TheFacebook. Learn about the crucial factors that led to its success.