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STrategic management week 5
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Differentiate between exploitation and exploration in the context of strategic renewal.
Differentiate between exploitation and exploration in the context of strategic renewal.
Exploitation is about improving what you are already doing.
Exploration is about finding new skills, discovery innovation. Taking up new activities as an organization.
Explain the resource-based view of strategic renewal.
Explain the resource-based view of strategic renewal.
Views strategic renewal as unique exploitation of core competencies. Resources are heterogenous and highly immobile. Results in firm specific strategies. The risk is competence trap, failing to renew yourself.
Discuss the exploration and exploitation paradox.
Discuss the exploration and exploitation paradox.
You have to do both, keep up what you already have but also find new things. You can’t go into extreme on either end.
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