Describe the leadership crisis at Facebook. correct answers Facebooks leadership solely focused on exponential growth but failed to consider serious negative effects on its stakeholders and firms reputation:
Lenient privacy controls led to 3rd parties being able to siphon off personal data and f...
BADM 449 Exam 1 || with A+ Guaranteed Solutions.
Describe the leadership crisis at Facebook. correct answers Facebooks leadership solely focused
on exponential growth but failed to consider serious negative effects on its stakeholders and
firms reputation:
Lenient privacy controls led to 3rd parties being able to siphon off personal data and foreign
interference during the 2016 US presidential election.
Describe the mission of Teach for America (TFA) correct answers A non-profit whose mission is
to provide an excellent education to under-privileged youth in economically disadvantaged
communities across the US
These students actually showed higher achievement, especially in math and science
Discuss "defining the business" and the contrast between customer-oriented and product-oriented
visions of the firm correct answers Defining the business
STARTING POINT OF STRATEGY
Want to be customer oriented
Product oriented is limiting
Customer oriented vision statement
Defining a business in terms of providing solutions to customer needs
Nike: "to bring inspiration and innovation to every athlete in the world"
Product oriented
Defining a business in terms of a good or service provided
"We are in the typewriter business"
Less flexible
Not needs-based
Myopic view (no creativity)
Discuss the levels of corporate, business, and functional strategy correct answers Corporate level
Top management decision-making about vertical integration, diversification, strategic alliances,
acquisitions, new ventures, restructuring, divestments
Where to compete?
Should GE move into airline industry?
Business level
The costs and benefits of generic strategy (cost leadership, differentiation, and focus) and first-
mover advantage.
Multiple businesses = multiple strategies
How to compete?
Should GE jet engines have better fuel efficiency than rolls royce's?
Functional Level
,Improving the effectiveness of functional operations within a company
Manufacturing
HR
Marketing
R&D
Operations management
How to implement?
Should GE HR recruit more science graduates to innovate airline industry?
Discuss the three approaches to strategize for competitive advantage: (1) Strategic planning; (2)
Scenario planning; and (3) Strategy as planned emergence. correct answers Strategic planning
(formal, top-down):
Strategic planning:
Black swan (anomaly) events
High impact of a highly improbable event
Ex: enron, real estate bubble, hacker
Scenario planning:
Envision "what-if" plans
New changes, demographic shifts, changing economic conditions, tech advances
Generates dominant strategic plan
Must implement most probable option
Shortcomings:
May not adapt well to change
Formulation is separate from implementation
Information flows one-way (top-down)
Leaderships team future vision can be wrong
May inhibit organizational learning
Strategy as planned emergence:
Less formal, begin with strategic place
Top-down and bottom-up (strategies emerge from employees and works way up)
Evaluated and coordinated by management
Relies on data + personal experience + deep domain expertise + front line employee insight
Provide the Analysis-Formulation-Implementation (AFI) Strategy Framework. correct answers
Used to position firm to sustain its competitive advantage, positive economic profit, positive
NPV
(top-down) framework:
Analysis
- DIAGNOSIS OF COMPETITIVE ADVANTAGE, looking at firm's external/internal
environment
Formulation
- GUIDING POLICY to address the competitive challenge - strategy formulation
Corporate strategy
Business strategy
Functional strategy
Implementation
- SET OF COHERENT ACTIONS to implement the guiding policy
Structure, culture, control
Corporate governance and business ethics
Describe strategy as planned emergence for Japan railways correct answers Employee came up
with solution to Japans bullet train's persistent flooding:
Fresh water off mountain should be bottled not drained
Multi-million dollar business followed with 1,000 vending machines on 1,000 railroad platforms
and home delivery of water, juices, and coffee
Discuss the adoption of Frappuccino by Starbucks correct answers Diana (a starbucks store
manager) received a request for an iced beverage. Upon making it and trying it she liked it so
much and brought up the idea of making iced coffee to HQ. The request was denied multiple
times but she did it anyway and sales skyrocketed and was adopted by other executives.
At one point these drinks were 20% of revenue
How is the "rational decision making" (optimizing) model fundamentally different from the
"satisficing decision-making model?" correct answers Rational decision making model:
Intent to optimize
An optimal decision is possible
All relevant info is available and understandable
All alternatives are known
All possible outcomes are known
Satisficing decision-making model:
Doing good enough with no intent to optimize: find a needle in the haystack without seeking to
find the sharpest needle in the haystack
Time constraints
Limited ability to understand all factors
Inadequate base of info
Limited memory of decision-makers
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