MGT 300 Exam 2
Forces that cause resistance to change
pg 458
Adaptive change
" Adaptive change is the reintroduction of a familiar practice—the implementation of a form of change that has already been experienced within the same organization. Of the three forms of change discussed in this section, adaptive change is the: ■ Easiest to implement successfully. This form of change is lowest in complexity, cost, and uncertainty. ■Least threatening to employees. Because it is familiar, adaptive change is likely to create the least resistance. Adaptive change is fairly common and often arises due to predictable, seasonal fluctuations in demand. Two hypothetical examples are: Examples: During the annual Labor Day sale, a department store may ask its sales employees to work 12 hours a day instead of the usual 8. During tax-preparation time, a store's accounting department may require an increase in work hours. Page 428"
Espoused values
" Espoused Values—Explicitly Stated Values and Norms As you can see in Figure 8.2, the second level of the iceberg is deeper and less visible than the first. This is where we find an organization's espoused values—the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founders or top managers. You can usually find evidence of an organization's espoused values by exploring its website for mission, vision, and values statements. Goldman Sachs Example: Citing a lack of diversity on corporate boards of directors, Goldman Sachs—a leading global investment bank—recently announced that it would no longer underwrite IPOs for companies that don't have at least one "diverse" board member. The company offered to help connect firms with potential board candidates from underrepresented groups. This decision is in line with the company's core values of diversity, teamwork, and service excellence. According to CEO David Solomon, "This is an example of our saying, 'How can we do something that we think is right and helps moves the market forward?'"35653 Although managers hope the values they espouse will directly influence employee behavior, employees don't always "walk the talk," and frequently they are influenced more by enacted values—the values and norms actually exhibited in the organization.54 Consider the example of Comcast: Comcast Example: Comcast has repeatedly landed on lists of America's most hated companies in recent years due to issues such as unauthorized charges on customers' bills and dismal customer care. There have even been instances of service representatives using profanity and behaving aggressively toward customers.55 These experiences contradicted the company's espoused values of treating customers with integrity, fairness, and respect, and in 2015 Comcast got serious about overhauling its customer service to better align itself with the values it claimed to live by.56 The company focused on decreasing the frequency of service calls and now handles almost 80% of customer issues through digital platforms that are faster and more efficient. Comcast also added options for customers to troubleshoot problems and schedule service visits through its app. These efforts drastically reduced the time it Page 322took for Comcast to connect with customers and resolve their issues, and by 2019 the company's name had fallen off of many "most hated" lists.57 It is more challenging to change espoused values than observable artifacts, but espoused values are easier to change than basic assumptions."
Innovative change
" Innovative Change—"This Is Something New for This Company " Innovative change is the introduction of a practice that is new to the organization. Innovative change is: ■Moderately difficult to implement. This form of change is characterized by moderate complexity, cost, and uncertainty. ■Somewhat threatening to employees. Because it is less familiar than adaptive change, innovative change is apt to trigger some fear and resistance among employees. Innovative changes may arise when an organization adopts a policy or practice that other organizations have embraced, but that is new for the firm. 464Example: If a department store decides to adopt a new practice among its competitors by staying open 24 hours a day, requiring employees to work flexible schedules, it may be felt as moderately threatening. "
Radical change
" Radically innovative change introduces a practice that is new to the industry. Radically innovative change is: ■Very difficult to implement. It is the most complex, costly, and uncertain form of change. ■Highly threatening to employees. It will be felt as extremely threatening to managers' confidence and employees' job security and may well tear at the fabric of the organization.72 Example: Educators all over the world experienced radically innovative change when they suddenly were forced to deliver all of their course content remotely during the COVID-19 pandemic. While remote course delivery wasn't a new idea, most faculty had little to no experience with it. This was particularly true for K-12 educators who were steeped in a centuries-old tradition of teaching students face-to-face. Many educators found the possibility that their jobs could be permanently changed highly threatening. "
What is the difference between reactive and proactive change?
" Reactive Change: Responding to Unanticipated Problems and Opportunities When managers talk about "putting out fires," they are talking about reactive change, making changes in response to problems or opportunities as they arise." "Proactive Change: Managing Anticipated Problems and Opportunities In contrast to reactive change, proactive change, or planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.48 The anticipation of increased automation has spurred proactive changes in the aerospace manufacturing industry. Consider the example of Airbus. Airbus Example: The process for manufacturing passenger jets has changed very little over time. Much of the work is still done by hand, and rigorous safety standards and government certification requirements mean that precision, rather than efficiency, is paramount. But Airbus recently built a new facility for its A320 model that will help the company keep up with increasing demand while simultaneously readying itself for the future. Robots and remote-control-operated assembly platforms stand in the place of fixed cranes and assembly lines, and 20% fewer workers are needed to complete the job. Further, the open layout of the facility ensures maximum flexibility for any future changes to the manufacturing process. Experts believe that increases in automation across the industry will continue to unfold very slowly, and Airbus plans to be prepared. Said CEO Guillaume Faury, "This is one of the building blocks of our digital trajectory and robotization of our production."49" pg 459
Span of control
" Span of Control: Narrow (or Tall) versus Wide (or Flat) The span of control, or span of management, refers to the number of people reporting directly to a given manager.129 Span of control is another feature that can be used to describe organizations. There are two kinds of spans of control: narrow (or tall) and wide (or flat). (See Figure 8.5.) Narrow Span of Control This means a manager has a limited number of people reporting—three vice presidents reporting to a president, for example, instead of nine vice presidents. An organization is said to be tall when there are many levels with narrow spans of control. Refer to Figure 8.5 and you can see that in a tall organization with a narrow span of control, the number of workers reporting to a manager one level above them is relatively small." pg. 374
How does a differentiation strategy differ from a cost leadership strategy?
"1. Cost-Leadership Strategy: Keeping Costs and Prices Low for a Wide Market The cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market. This puts the pressure on R&D managers to develop products or services that can be created cheaply, production managers to reduce production costs, and marketing managers to reach a wide variety of customers as inexpensively as possible. Firms implementing the cost-leadership strategy include Timex, IKEA, computer maker Acer, retailers Walmart and Home Depot, and pen maker Bic. 2. Differentiation Strategy: Offering Unique and Superior Value for a Wide Market The differentiation strategy is to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market. Because products are expensive, managers may have to spend more on R&D, marketing, and customer service. This is the strategy followed by Ritz-Carlton hotels and the maker of Lexus automobiles. Some studies have found that differentiation is important in uncertain environments, such as expanding overseas, where it can especially enhance performance.92 The differentiation strategy also is pursued by companies trying to create brands to differentiate themselves from competitors. Eyewear retailer Warby Parker invests in differentiation strategies for its glasses and contact lenses by making them "cool." Its stores feature a midcentury design with glowing shelves and associates in blue smocks hovering around low walnut tables. Warby's hip "eye exam suites" feel more like a vinyl-record listening room than a doctor's office"
Five forces of Porter's model of strategic analysis
"1. Threats of New Entrants New competitors can affect an industry almost overnight, taking away customers from existing organizations. For example, since Netflix found success by shifting its focus from in-store and mail-order DVD rentals to online streaming, traditional networks such as HBO, NBC, and CBS have started a streaming service as well. In addition, Amazon, Apple, and Disney have thrown their hats into the online streaming market, creating what many have called the "streaming wars."88 2. Bargaining Power of Suppliers Some companies are readily able to switch suppliers in order to get components or services, but others are not. Netflix needs to procure different movies and TV shows in order to keep its content diverse and fresh. This reliance may provide suppliers with higher power because there are limited companies producing media and entertainment content. As a result, Netflix has turned to producing its own original content. This content is showing signs of success, as it only accounts for 8% of Netflix's viewing options but dominates the subscriber most-watched list.89 3. Bargaining Power of Buyers Informed customers become better negotiators. For example, use of the Internet enabled one of your authors to get a higher trade-in on his current vehicle and a lower sales price on a new car. Netflix faces an uphill battle when it comes to customer switching costs. Subscribers don't have to worry about termination fees if they cancel their Netflix service and acquiring competitors' services is as easy as downloading an app.90 4. Threats of Substitute Products or Services Like all programming providers, Netflix must ensure that customers continue to prefer its offerings to the many other options available. This includes not only other streaming services, but also traditional cable providers and satellite television. Customers also may subscribe to discount Internet television service, such as Sling and YouTube TV.91 5. Rivalry among Competitors The preceding four forces influence the fifth force, rivalry among competitors. Think of the growing competition among online streaming networks engaged in the "streaming wars" and the number of services you can now utilize to watch your favorite shows. Once again, the Internet has intensified rivalries among all kinds of organizations."
How does a focused strategy differ from a broad strategy?
"4. Focused-Differentiation Strategy: Offering Unique and Superior Value for a Narrow Market The focused-differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market. Viking Cruises represents a good application of this strategy. Viking Cruises, founded in 1997, is a river and ocean cruise provider based in Basel, Switzerland.95 Its founder and chairman, Torstein Hagen, caters to wealthy, well-educated individuals who are over 55. "I can do my market research by looking in the mirror," the 77-year-old jokes. Viking's cruises start at $1,899, compared to typical competitors charging $399 a head. The Viking price includes Internet, alcohol with meals, and a daily shore excursion. Named the #1 Ocean Cruise Line by Travel + Leisure four years in a row, Viking's cruises often sell out a year in advance.96 Research shows that formal strategic planning helps organizations effectively react to challenging situations, make the right trade-off decisions, and develop a common team spirit and culture.97 Self-Assessment 6.2 will help you better understand your own strategic planning skills."
Defensive strategy
"A defensive strategy, or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. Canadian plane and Page 224train manufacturer Bombardier adopted a defensive strategy by deciding to sell its business-jet division. The company is currently surviving on Canadian government loans and needs to reduce roughly $9 billion in debt it has accrued due to weak demand for business jets and manufacturing problems in its train division. "Can [Bombardier] survive with the three business units it has today? The answer is no," says Quebec Economy Minister Pierre Fitzgibbon.256" pg. 256
Process innovation
"A process innovation is a change in the way a product or a service is conceived, manufactured, or distributed. McDonald's is experimenting with two process innovations: McDonald's Example: Food delivery is expected to be a $76 billion business by 2022. McDonald's wants to ensure customers can experience their Big Mac meals and fries still piping hot by engaging drones to deliver its meals. The company is partnering with Uber Elevate (Uber's aerial division) and is hoping to gain FAA approval for broad implementation by 2023.115 The chain is also experimenting with robotic fryers that it hopes will free up its workers to focus more on customer service."
What is the difference between entrepreneurship and self employment?
"Entrepreneurship, a necessary attribute of business, means the taking of risks to create a new enterprise. It can increase the standard of living around the world. Social entrepreneurship, in contrast, consists of improvising systems, devising new approaches, grasping opportunities others miss, and generating solutions to change society for the better. There are ten key characteristics of entrepreneurs that you should be familiar with." "Self-employment is a way of working for yourself "as a freelancer or the owner of a business rather than for an employer."13 As textbook writers, we are self-employed. We work for ourselves and hire contractors to help get things done. The same is true for many doctors, lawyers, accountants, insurance agents, electricians, and general contractors. Self-employed people are frequently experts in their fields and recognized members of their communities. In contrast, recall that entrepreneurs are motivated to introduce, change, or transform a product or service potentially desired by the marketplace. They are more interested in innovation and business growth than self-employed individuals. Let's consider five points of comparison:"
Few needs, many customers
"Few needs, many customers. Strategic position can be derived from serving the few needs of many customers. Example: Crocs sells only shoes, but it provides them to all kinds of people."
Delegation of authority
"Authority—Accountability, Responsibility, and Delegation In elephant families, authority over the herd rests with the oldest female, known as the matriarch. In human organizations, however, authority is related to management positions, and it is another feature we can use to describe organizations. Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. Disobeying orders may lead to consequences such as reprimand, demotion, or firing, and subordinates are expected to accept that a higher-level manager has a legitimate right to issue orders. With authority goes accountability, responsibility, and the ability to delegate one's authority.Page 341 Accountability Authority means accountability—managers must report and justify work results to the managers above them. Being accountable means you have the responsibility for performing assigned tasks.131 Responsibility With more authority comes more responsibility. Responsibility is the obligation you have to perform the tasks assigned to you. A car assembly-line worker has less authority and responsibility than a manager of the assembly line. Whereas the line worker is generally responsible for one specific task, such as installing a windshield, the manager has much greater responsibilities. Delegation Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy. To be more efficient, most managers are expected to delegate as much of their work as possible.132 However, many bosses get hung up on perfection, failing to realize that delegation is not only a necessary part of managing, but one that impacts attitudes, productivity, and firm performance.133 Check out the Practical Action box for tips on delegating effectively." pg. 375
Shared assumptions
"Basic Assumptions—Core Values of the Organization Figure 8.2 demonstrates that a substantial portion of an organization's culture exists at such a deep level that it is nearly impossible to grasp or articulate. Basic assumptions represent the unobservable yet core values of an organization's culture that are often taken for granted. The values at this level have a profound effect on employee behaviors because they have informed every decision in the organization's past and are thus entwined with its identity. For this same reason, basic assumptions are very difficult to change. Industry expert Karen Niovitch Davis warns that basic assumptions, left unchecked, can be a destructive force. According to Davis, "Old assumptions die hard if they're not examined and addressed. Try not to ignore the unwritten rules. It's terrible to find out about them after an employee crossed a line because they thought it was what you wanted."58 Consider the example of Facebook and its struggle to change its culture. Facebook Example: Facebook espouses five core values on its website: (1) be bold, (2) focus on impact, (3) move fast, (4) be open, and (5) build social value.59 But according to Notre Dame ethics professor Joseph Holt, the company's deeply embedded basic assumptions are closer to (1) be reckless, (2) focus on making as much money as possible, (3) never let noneconomic concerns (like data privacy) get in the way of economic opportunities, (4) be no more open than required, and (5) accept bringing people closer together as merely a nice plus.35760 Facebook was once considered one of the best workplaces in the world, but former employees have begun to paint a picture of a culture that grew to actively discourage dissent, pressure workers to show unquestioning loyalty or risk permanent damage to their careers, and embrace the company culture above all else.61 Many believe Facebook's underlying assumptions are the reason it ignored and even concealed serious concerns about data security and privacy.62 Did you know that Facebook's original #3 core value was actually "move fast and break things"? It was this entrepreneurial spirit that drove the company's meteoric rise to the top. But a culture focused on growth at all costs without regard for the rules is no longer suitable for the company now that it is responsible for safeguarding the data of almost 2.5 billion users, and it seems Facebook continues to struggle to make any meaningful cultural improvements."
broad needs, few customers
"Broad needs, few customers. A strategic position may be based on serving the broad needs of just a few customers. Example: Buy Buy Baby sells clothing, strollers, and other items for babies."
Broad needs, many customers
"Broad needs, many customers. Strategy may be oriented toward serving the broad needs of many customers. Example: Allegiant Airlines is a low-cost travel company that not only offers flights across the United States, but also owns budget-friendly hotels."
centralization
"Centralization versus Decentralization of Authority Another feature we can use to describe organizations is the extent to which authority is centralized versus decentralized. This feature is concerned with who makes the important decisions in an organization. Centralized Authority With centralized authority, important decisions are made by higher-level managers. Very small companies tend to be the most centralized, although nearly all organizations have at least some authority concentrated at the top of the hierarchy. Walmart and McDonald's are examples of companies using this kind of authority. Two advantages of centralized authority are: 1. There is less duplication of work because fewer employees perform the same task; rather, the task is often performed by a department of specialists. 3772. There are increased efficiencies because procedures are uniform and thus easier to control." pg. 377
How does the BCG matrix categorize business units or profits within a company?
"Developed by the Boston Consulting Group, the BCG matrix is a management strategy used by companies to evaluate their strategic business units on the basis of (1) their business growth rates and (2) their share of the market. Business growth rate describes how quickly the entire industry is growing. Market share is the business unit's share of the market in relation to competitors. The purpose of evaluating each business unit in the company's portfolio is to identify the most effective way to direct the company's financial resources. In general, the BCG matrix suggests that an organization will do better in fast-growing markets in which it has high market share rather than in slow-growing markets in which it has low market share. These concepts are illustrated below. (See Figure 6.6.)81 Figure 6.6 The BCG matrix Market growth is divided into two categories, low and high. Market share also is divided into low and high. Thus, in this matrix, "stars" are business units that are highly desirable (high growth, high market share), compared to "dogs," which are not so desirable (low growth, low market share). " pg. 256
Division of labor
"Division of Labor: Work Specialization for Greater Efficiency Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. Even a two-person crew operating a fishing boat probably has some work specialization—one steers the boat and the other works the nets. With division of labor, an organization can parcel out the entire complex work effort to be performed by specialists, resulting in greater efficiency. One way to describe organizations is to discuss the specific ways they choose to divide their labor." pg. 374
Improvement innovation
"Improvement innovations enhance or upgrade an existing product, service, or process. These types of innovations are often incremental and are less likely to generate significant amounts of new revenue at one point in time. Stitch Fix has used improvement innovation to remain competitive in recent years. Stitch Fix Example: CEO Katrina Lake is capitalizing on her company's data analytics abilities to increase the personalization of customers' experiences. Now, instead of just receiving a box with five new items each month, customers can opt-in to the company's "Shop Your Looks" sub-service that periodically recommends an additional piece based on the items they already own. The service adds value by continuing to build customers' wardrobes around previous purchases, and the company will benefit from increased impulse purchases.117 "
Matrix structure
"In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal. The functional structure usually doesn't change—it is the organization's normal departments or divisions, such as Finance, Marketing, Production, and Research & Development. The divisional structure may vary—as by product, brand, customer, or geographic region."
Artifacts
"Level 1: Observable Artifacts—Physical Manifestations of Culture We begin our discussion of organizational culture by looking at the top of the iceberg. Figure 8.2 shows that at the most visible level, organizational culture is expressed in observable artifacts—physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, decorations, as well as visible behavior exhibited by managers and employees. Gusto's observable artifacts. How many observable artifacts of Gusto's laid-back culture can you find in this photo? For starters, check out co-founder Josh Reeves' socks and the built-in employee shoe cubby beside him. What else do you see here that provides a glimpse into Gusto's culture? Ramin Rahimian/Redux Pictures Gusto Example: Gusto provides cloud-based HR solutions for more than 100,000 companies in the United States and is on a mission to make work "meaningful for everyone, everywhere." Co-founders Josh Reeves, Edward Kim, and Tomer London want their offices to feel inviting and comfortable, so they have a "no shoes" policy and build walls of shoe cubbies into the entrances of each location. Employees are encouraged to wear fun socks, and the Page 321co-founders say the policy makes Gusto employees feel at home while they work. If you ever decide to visit a Gusto office, you'll have to remove your shoes, too! But don't worry—the company will provide funky Gusto socks and spa sandals to keep you cozy. 52 " pg. 355
Product innovation
"More specifically, a product innovation is a change in the appearance or functionality/performance of a product or a service or the creation of a new one. W. L. Gore recently looked to product innovation to jolt the company out of what its former CTO called "a stall point."113Page 439 W. L. Gore Example: You may recognize W. L. Gore & Associates (Gore) as the company that manufactures Gore-Tex—the waterproof fabric used by companies like Patagonia, The North Face, and L.L.Bean. But the company's latest project is a far cry from outdoor apparel. Gore is currently working on developing a revolutionary type of corneal transplant with the same polymer it uses in surgical patches. The material has the right transparency, is flexible, and bends light just like human corneal tissue. The implant is revolutionary because (1) it is inert and therefore won't be rejected by the donor's body, and (2) it integrates itself into the donor's eyeball. The company hopes to bring the product to market by 2026."
What are the characteristics of SWOT analysis? What step of the strategic management process is this?
"SWOT analysis is a good first step at gaining insight into whether or not a company has competitive advantage. SWOT analysis is a situational analysis in which a company assesses its strengths, weaknesses, opportunities, and threats. In Chapter 3 we introduced you to an organization's internal and external environments (Figure 3.1). A SWOT analysis provides you with a realistic understanding of your organization in relation to its internal and external environments so you can better formulate strategy in pursuit of its mission." pg. 248
Divisional structure
"The Divisional Structure: Grouping by Similarity of Purpose In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions."
Functional structure
"The Functional Structure: Grouping by Similar Work Specialties In the functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, both for-profit and nonprofit. (See Figure 8.8.) Figure 8.8 Functional structure: Two examples This shows the functional structure for a business and for a hospital. Examples: A manufacturing firm will often group people with similar work skills in a Marketing Department, others in a Production Department, others in Finance, and so on. A nonprofit educational institution might group employees according to work specialty under Faculty, Admissions, Maintenance, and so forth. " pg. 379
Growth strategy
"The Growth Strategy A growth strategy is a grand strategy that involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. Often a growth strategy takes the form of an innovation strategy, growing market share or profits by innovating improvements in products or services (as in using an e-business approach in calculatedly disseminating information). We consider innovation further in Chapter 10. Lululemon Example: Canadian apparel company Lululemon was established in 1998 as a yoga-inspired women's clothing line. Recently, the brand has been increasing sales by appealing to men as well. Lululemon claims it made the decision to expand to men's clothing based on "feedback from our guests, ambassadors and elite athletes."77 The apparel maker's growth strategy has proven to be successful, with 20% of its 2018 sales ($3.3 billion) coming from men's clothing. Men's clothing sales continued to grow more than 30% in 2019, and the company is on target to double its men's business by the end of 2023. All of this growth led to Lululemon's stock price surging 91% in 2019.78 " pg 255
What is a hollow or network structure?
"The Hollow Structure: Operating with a Central Core and Outsourcing Functions to Outside Vendors In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other Page 350functions to vendors who can do them cheaper or faster. (See Figure 8.12.) A company with a hollow structure might retain such important core processes as design or marketing and outsource most other processes, such as human resources, warehousing, or distribution, thereby seeming to "hollow out" the organization.149 Figure 8.12 Hollow structure This is an example of a personal computer company that outsources noncore processes to vendors. A firm with a hollow structure might operate with extensive, even worldwide operations, yet its basic core could remain small, thus keeping payrolls and overhead down. The glue that holds everything together is information technology, along with strategic alliances and contractual arrangements with supplier companies. 3M is an example of a company with a hollow structure. The company has outsourced multiple aspects of its business for years, including much of its manufacturing, reverse logistics, and e-catalog management."
What are modular and virtual structures?
"The Modular Structure: Outsourcing Pieces of a Product to Outside Firms The modular structure differs from the hollow structure in that it is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes (such as human resources or warehousing) of an organization. In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors. One article compares this form of organization to "a collection of Lego bricks that can snap together." Apple Example: In manufacturing many of its devices, Apple procures component parts from a multitude of suppliers and then uses service vendors to assemble the components into a final Apple product. For example, touchscreen controllers come from a company in Norwood, MA; taptic engines (the technology that makes the "tapping" feeling happen when you execute some functions on your iPhone) come from Japan; and memory modules, phone casings, and ceramic capacitors come from China.383151 This example highlights a potential danger of using a modular structure. When COVID-19 took hold of China in early 2020, Apple's manufacturing and revenue took a major hit because so much of its supply chain was located there.152 The Virtual Structure: An Internet-Connected Partner for a Temporary Project "There is fantastic talent out there to drive growing companies," says one industry observer, "but the best people are scattered everywhere and with full personal lives that prevent them from relocating to headquarters easily."153 One consequence of this is the virtual structure, an organization whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location.154Page 351 articulāte Example: articulāte is a fully remote e-learning company that is built on the values of autonomy, productivity, and respect. According to one of the company's engineers, "Autonomy doesn't mean 'work in a vacuum all by your lonesome.' In fact, we're very interdependent and collaborate a lot, so we do need to be available sometimes for our teammates. People on teams decide when they need each other and sync on schedules. A team's work hours are fluid, flexible, and determined by the people they impact." The company has provided e-learning software solutions to 98,000 organizations in 151 countries"
Stability strategy
"The Stability Strategy A stability strategy is a grand strategy that involves little or no significant change. McIlnenny Company, makers of Tabasco sauce, is a good example of a company using this strategy. Edmund McIlhenny produced the first Tabasco pepper sauce bottle in 1868 to give southern food "some flavor and excitement." Today, Tabasco sauce is labeled in 25 languages and dialects and sold in more than 180 countries. The company has added seven additional flavors to its offerings through the decades, but there hasn't been a significant change to the company's strategy." pg. 255
What is sustained competitive advantage? What makes it sustained?
"The second step in the strategic-management process, assess the current reality, looks at where the organization stands internally and externally—to determine what's working and what's not, to see what can be changed to create sustainable competitive advantage: Sustainable competitive advantage exists when other companies cannot duplicate the value delivered to customers. An assessment helps to create an objective view of everything the organization does: its sources of revenue or funding, its work-flow processes, its organizational structure, client satisfaction, employee turnover, and other matters." pg. 248
What does VRIO stand for? How do these relate to a company's competitive advantage?
"VRIO (pronounced by its letters, "V-R-I-O") is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its value, rarity, imitability, and organization.51 The questions are shown in Figure 6.4. VRIO is a way to analyze a firm's competitive potential by asking four questions about value, rarity, imitability, and organization. A yes answer to each question means the resource or capability—that is, the business idea—has a competitive advantage (see Figure 6.4). Let's better understand each part of the VRIO framework by applying it to Toyota's investment in autonomous cars." pg. 251
Characteristics of successful entrepreneurs
pg 281
what are the following types of small businesses and what are the advantages of each
pg 291
Financing options for small businesses
pg 292
How do employees learn culture?
pg 357
Trends forcing innovation
pg 454
Three steps of in Lewin's change model
pg 465
How can you create a culture that supports innovation through strategy, culture, structure and process, and HR practice
pg 476
What are the four generic organizational culture types?
pg. 361
New direction innovation
take a totally new or different approach to a product, service, process, or industry