BUSINESS STRATEGY EXAM III FINAL
PAPER QUESTIONS AND SOLUTIONS
◉ Acquiring, Developing, and Strengthening Key Resources and
Capabilities
Answer: 3 Approaches:
1. develop capabilities internally
2. acquire capabilities through mergers and acquisitions
3. access capabilities via collaborative partnerships
Is a multistage process that occurs over a period of months and
years. Not something that is accomplished overnight.
Capabilities must be continually refreshed and renewed to remain
aligned with changing customer expectations, altered competitive
conditions, and new strategic initiatives
◉ 1. Developing Capabilities Internally
Answer: *Strengthen the firm's base of skills, knowledge, and
intellect*
[Training]
-Executing a strategy that requires different skills, competitive
capabilities, and operating methods.
-Organizational efforts to build skills-based competencies.
,-Supplying technical know-how to employees when rapidly
changing technology puts a firm
in danger of losing its ability to compete.
-Setting stretch goals to develop capabilities into compentencies
*Coordinate and integrate the efforts of work groups and
departments*
◉ 2. Acquiring Capabilities Through Mergers and Acquisitions
Answer: A question of market opportunity: when a market
opportunity can slip by faster than a needed capability can be
created internally
A question of competitive necessity: when industry conditions,
technology, or competitors are moving at such a rapid clip that
time is of the essence
A question of successful integration: tacit knowledge and complex
routines may not transfer readily from one organizational unit to
another
◉ 3. Accessing Capabilities Through Collaborative Partnerships
Answer: Approaches to acquiring capabilities from an external
source
,-outsource the function requiring the capabilities to a key supplier
or another provider
-collaborate with a firm that has complementary resources and
capabilities
-engage in a collaborative partnership for the purpose of learning
how the partner does things
◉ Matching Organizational Structure to the Strategy
Answer: 1. decide which value chain activities to perform
internally and which to outsource
2. align the organizational structure with the strategy
3. decide how much authority to centralize at the top and how
much to delegate to down-the-line managers and employees
4. facilitate collaboration with external partners and strategic
allies
◉ 1. Deciding which value chain activities to perform internally
and which to outsource
Answer: Benefits:
-Helps in outclassing rivals in strategy-critical activities and in
turning a core competence into a distinctive competence.
-Decreases bureaucracies, flattens structure, speeds decision
making, and shortens respond time to changing market
conditions.
-Adds to a firm's capabilities and contributes to better strategy
execution through partnerships with suppliers and channel
partners.
, Wisely choosing which activities to perform internally and which
to outsource can lead to several strategy-executing advantages -
lower costs, heightened strategic focus, less internal bureaucracy,
speedier decision making, and a better arsenal of organizational
capabilities
◉ 2. Aligning the firm's organizational structure with its strategy
Answer: Organizational Structure: comprises the formal and
informal arrangement
of tasks, responsibilities, lines of authority, and reporting
relationships for the firm.
Structure is aligned with strategy when:
-Its design contributes to the creation of value for customers.
-Its parts are aligned with one another and also matched to the
requirements of the strategy.
-It lowers operating costs through lower bureaucratic costs and
operational efficiencies.
◉ Matching Type of Organizational Structure to Strategy
Execution Requirements
Answer: Simple Structure (line-and-staff)
Functional Structure (departmental or unitary)
Multidivisional Structure (divisional or M-form)
Matrix Structure (composite or combination)
PAPER QUESTIONS AND SOLUTIONS
◉ Acquiring, Developing, and Strengthening Key Resources and
Capabilities
Answer: 3 Approaches:
1. develop capabilities internally
2. acquire capabilities through mergers and acquisitions
3. access capabilities via collaborative partnerships
Is a multistage process that occurs over a period of months and
years. Not something that is accomplished overnight.
Capabilities must be continually refreshed and renewed to remain
aligned with changing customer expectations, altered competitive
conditions, and new strategic initiatives
◉ 1. Developing Capabilities Internally
Answer: *Strengthen the firm's base of skills, knowledge, and
intellect*
[Training]
-Executing a strategy that requires different skills, competitive
capabilities, and operating methods.
-Organizational efforts to build skills-based competencies.
,-Supplying technical know-how to employees when rapidly
changing technology puts a firm
in danger of losing its ability to compete.
-Setting stretch goals to develop capabilities into compentencies
*Coordinate and integrate the efforts of work groups and
departments*
◉ 2. Acquiring Capabilities Through Mergers and Acquisitions
Answer: A question of market opportunity: when a market
opportunity can slip by faster than a needed capability can be
created internally
A question of competitive necessity: when industry conditions,
technology, or competitors are moving at such a rapid clip that
time is of the essence
A question of successful integration: tacit knowledge and complex
routines may not transfer readily from one organizational unit to
another
◉ 3. Accessing Capabilities Through Collaborative Partnerships
Answer: Approaches to acquiring capabilities from an external
source
,-outsource the function requiring the capabilities to a key supplier
or another provider
-collaborate with a firm that has complementary resources and
capabilities
-engage in a collaborative partnership for the purpose of learning
how the partner does things
◉ Matching Organizational Structure to the Strategy
Answer: 1. decide which value chain activities to perform
internally and which to outsource
2. align the organizational structure with the strategy
3. decide how much authority to centralize at the top and how
much to delegate to down-the-line managers and employees
4. facilitate collaboration with external partners and strategic
allies
◉ 1. Deciding which value chain activities to perform internally
and which to outsource
Answer: Benefits:
-Helps in outclassing rivals in strategy-critical activities and in
turning a core competence into a distinctive competence.
-Decreases bureaucracies, flattens structure, speeds decision
making, and shortens respond time to changing market
conditions.
-Adds to a firm's capabilities and contributes to better strategy
execution through partnerships with suppliers and channel
partners.
, Wisely choosing which activities to perform internally and which
to outsource can lead to several strategy-executing advantages -
lower costs, heightened strategic focus, less internal bureaucracy,
speedier decision making, and a better arsenal of organizational
capabilities
◉ 2. Aligning the firm's organizational structure with its strategy
Answer: Organizational Structure: comprises the formal and
informal arrangement
of tasks, responsibilities, lines of authority, and reporting
relationships for the firm.
Structure is aligned with strategy when:
-Its design contributes to the creation of value for customers.
-Its parts are aligned with one another and also matched to the
requirements of the strategy.
-It lowers operating costs through lower bureaucratic costs and
operational efficiencies.
◉ Matching Type of Organizational Structure to Strategy
Execution Requirements
Answer: Simple Structure (line-and-staff)
Functional Structure (departmental or unitary)
Multidivisional Structure (divisional or M-form)
Matrix Structure (composite or combination)
