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Summary MNG3702 Assignment 2 semester 1 2023
- Course
- Unisa - MNG3702 (MNG3702)
- Institution
- University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS QUESTIONS AND ANSWERS FOR ASSIGNMENT 2 WITH A 100% PASS GUARANTEED.
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MNG3702 Assignment 2Semester 2 2022
STUDENT NU:51798254
, Question 1
1.1. absorptive capacity is a measure of the speed at which an organisation can learn and
use scientific, technical or other knowledge that exists outside of the organisation itself. For
better understanding we could say, Absorptive capacity is an organisation’s ability to identify,
assimilate, transform, and utilize external knowledge, research and practice.
1.2 Absorptive capacity identified by Zahra & George (2002) has four dimensions:
acquisition, assimilation, transformation and exploitation. Dimensions of Absorptive Capacity
Relevant to Tesla Inc.
Acquisition of external information:Acquisition is defined as the ability to perceive,
understand and acquire the external knowledge required to operate an organization.
Acquisition can be viewed as producing organizational knowledge. Acquisitions can be made
as a result of investments in R&D or through prior knowledge.
Assimilation of acquired information: assimilation refers to an organization's ability to
integrate external knowledge using routines and processes that enable understanding,
analysis, processing, and interpretation of information from external sources. In a given case
study, “Continuous innovation sustains the competitive advantage needed to meet the strong
forces of industry competition identified in Tesla Inc.’s Porter’s Five Forces Analysis. The
company responds to this need through a corporate culture that rewards constant
innovation: managers motivate employees to contribute to the constant innovation of
business processes and outputs.
Transformation of knowledge:.It is the ability of an organization to develop and refine
routines that facilitate the combination of existing knowledge with newly acquired and
assimilated knowledge. For example, “When Tesla develops innovative products, Tesla
believes that the corporate culture is a preconceived notion of employees. We must try to
encourage them to think outside the box. This cultural trait recognizes the importance of new
ideas and solutions, but also emphasizes the benefits of considering unconventional paths. ”
Application of new knowledge:The true benefits of absorptivity occur when organizations
use transformed knowledge and new insights to improve business operations and develop
new innovations and business ventures (Venter & Botha, 2019). For example, at Tesla Inc.,
HR managers are training their employees to push the traditional boundaries of productivity
and creativity in automotive design, leading to the development of new solutions for energy
and transportation needs. This situation opens up new opportunities for Tesla Inc. to
strategically improve the performance of his business.
Question 2
Resource allocation is the process of allocating and planning available resources as
effectively and economically as possible. The three key elements of resource allocation for
strategy execution are:
Align organisational units with strategic direction: All dimensions of the organizational
strategic hierarchy, such as organization, strategic business unit, and functional unit, must
be aligned and support each other. Ultimately, the contribution of each functional unit and
each strategic business unit should contribute to the strategic direction of the organization
and lead to the achievement of the organization's goals, mission and vision (Venter & Botha,
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