Comprehensive elaboration of the Theory Lab Sessions and the Case Study Sessions that are covered in the Strategic Management of Organizations course (2022/2023). Important questions that may come up in the exam, so it's always useful to know them well!
1) Define the mission and vision
a. The difference between mission and vision. Mission focusses on who we are, what we
do, for who we do it and how we do it, a mission answers these four questions. A
mission is some task, duty or purpose that ‘sends someone on their way’ A vision
focuses on how the organization is going to develop in the future and if an
organization pictures what they wish to achieve.
b. Statement 1 is a good mission statement because they have a clear organizational
purpose namely being the Earth’s most customer centric company, their driving ideas
are to continually raise the bar of the customer experience by using the internet and
technology
Statement 2 is a weak mission statement because it misses organizational beliefs, it is
not clear what their driving ideas and assumptions are, their mission statement does
not contain all the elements of a corporate mission.
2) Whenever you aim to define the mission and vision of the organization, what is the
paradox that organizations face
a. Profitability versus responsibility. What choices does an organization make? Either to
be an attractive investment, a firm must earn a higher return on the shareholders’
equity than could be realized (profitability) or to be acting in the interest of others,
even when there is no legal imperative (responsibility)
b. The shareholder value perspective is connected to profitability. The only thing that’s
important is to make the most profit. Stakeholder is connected to responsibility and is
thinking further than only profit. To do the best for the world and being sustainable.
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, Assignment (3) Theory Lab Session
1) Strategic innovation is a complex and difficult process to manage. Identify the
inhibitors of strategic innovation. Briefly discuss their effects.
a. Effects of innovation results
Disappointing results: Prior failing strategies make strategists reluctant to
explore alternatives that failed before
Positive results: Lead to the development of innovation routines and
institutionalization of successful practices, both lead to increased inertia
b. Inertia and bias
Organizations that continuously improve: business model have a high chance of
missing a breakthrough technology
Companies focusing on the 'next big thing': build up a blind spot for continuous
improvements over competitors
c. Feedback
When innovation results are satisfying: according to higher level managers,
strategists are not challenged to explore innovation that could be even more
promising
2) Define the concept of dominant logic. Explain why this concept is important for
strategic decision making and innovation. How can you break away from an industry’s
existing dominant logic so that you can maximize the value offered to customers in the
future?
a. The strategy from the past becomes the norm on which all new innovations are based.
These norms are internalized into the “DNA” Of the company. It is also internalized
into the and manifested throughout the entire operating procedures.
b. Never change a winning team! Also, to higher level managers, strategists are not
challenged to explore innovation that could be even more promising, due to the
feedback inhibitor factor mentioned earlier.
c. By continuously updating organization norms towards beliefs. Value innovation
thinking is to choose doing new things that create. It’s about being a step ahead,
thinking further than existing things. Not being constrained by what you have done in
the past. The idea is to look beyond existing conditions and constraints to instead build
strategy.
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