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Question: The text discusses strategic trade-offs that


The text discusses strategic trade-offs that are different between Walmart and Nordstrom even though they are in the same industry. Think of another industry that you know fairly well and select two firms there that also have made very different choices for these trade-offs. Describe some of the differences between these firms. What type of trade-off decisions have these firms made?



> Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are materials (metal), labor, and overhead. Data for the previous three reporting periods follow: Required a. Compute the total

> Cahalan is a network of clinics performing laser surgery for vision correction. Each clinic tracks the number of patients treated and the number of professional-hours spent on the laser patient procedure. Consultations, follow-up visits, and so on are tr

> Canfield Transition Centers is a not-for-profit organization to teach new technical skills to individuals looking to change careers. Canfield operates four campuses (Construction, Electrical, Plumbing, and Carpentry). Because the programs require all-day

> The controller’s staff at McNichols Lubricants is responsible for preparing quarterly performance reports. One report evaluates quarter-to-quarter improvement in partial productivity of the two main inputs in the production process: bas

> Top management at Reisener Corporation are looking to improve productivity in corporate staff functions. One area targeted for the initiative is the Human Resources (HR) department. The following data were collected for three relatively routine actions f

> RST Airlines operates call centers for customer service in four locations: Minneapolis, Phoenix, Boise, and Singapore. Although all four call centers can handle any inquiries, calls from elite customers are generally routed to the Boise center, and inter

> For each category of functional measures listed in Exhibit 18.9, add one additional specific measurement that is not already listed.

> Gordon Industries has the following mission statement: To be the low-cost leader in package delivery services. Gordon’s CEO tells you that the financial staff has developed the following initial balanced scorecard: Required Comment on t

> Romeyn Food Markets has decided to adopt a balanced scorecard to monitor performance. The company’s strategy is to be a provider of premium foods, sourced from local farms and nationally known organic suppliers. The initial scorecard re

> What is the advantage of recognizing materials price variances at the time of purchase rather than at the time of use?

> What are the advantages of the contribution margin format based on variable costing compared to the traditional format based on full absorption costing?

> What would it take to implement your ideas/plans to move forward with these goals?

> Develop a plan to address key stakeholder concerns from each perspective. Can you find a pathway in the stakeholder analysis to build support for your key goals?

> List your personal goals. Which stakeholders are supportive of these goals? Which are likely to try to block these goals?

> Are efforts such as the MBA oath (discussed in this chapter) reflections of a different approach that Gen Z will bring to the business environment, compared with prior generations?

> As this cohort expands in the work force, do you expect to see different sets of business ethics and workplace culture take hold? Please explain.

> As you consider your career after graduation, which control-and-reward system would you find most motivating? Is this different from the controls used at some jobs you have had in the past? How do you think you would perform in a holacracy such as Zappos

> Have you been in school or work situations in which your values did not align with those of your peers or colleagues? How did you handle the situation? Are there certain values or norms important enough for you to consider as you look for a new job?

> Review Exhibit 11.11 and circle the organizational characteristics you find appealing. Cross out those factors you think you would not like.

> Identify at least three activities you could do this week to get started. For example, you could choose to work with international students on group projects in class. Perhaps invite students with diverse backgrounds to lunch. What questions could you as

> Identify your weakest area and make a list of activities that will help you improve your capital in that area.

> Why is it that PESTEL factors can have such a strong impact on the future of a business? Do you support legislation such as that passed in New York (and elsewhere), or do you think it has more to do with protecting vested interests such as the hotel indu

> As a baseline of your current position, list your strengths and weaknesses for each component.

> Now compare your actual career-related network using a site such as LinkedIn. Are any of your connections linked together? With how many alumni from your university are you linked? These alumni can provide a source of “weak ties” that may help you get a

> Create a list of up to 12 people at your university with whom you regularly communicate (in person, electronically, or both). Draw your network (place names or initials next to each node), and connect every node where people you communicate with also tal

> Let’s consider dynamics—has your level of diversification changed over time (say, over the last five years)? Looking toward the future, do you expect your level of diversification to change as you complete your degree? Why or why not?

> Do you need to make adjustments to your portfolio of activities? Explain the reasons for your answer.

> Using Exhibit 8.8 as a guide, list each of your major activity areas. Think of each of these as a business. (If you are literally “all work and no play,” you are a single-business type of personal diversification.) Instead of revenues, estimate the perce

> Explain how you would apply the strategic management framework to enhance your startup’s chances to gain and sustain a competitive advantage.

> Do you see higher education as a benefit or detriment to becoming a successful entrepreneur? Why?

> Thinking about today’s business climate, would you say that now is a good time to start a business? Why or why not?

> Before you launch into a new project, job, or firm, or even before you make a change in industry in the effort to move forward in your career, always consider the trade-offs that you would and would not be willing to make.

> How was an internet startup able to disrupt the hotel industry, long dominated by giants such as Marriott and Hilton, which took decades to become successful worldwide hospitality chains? Explain.

> Amazon has surpassed 650,000 employees and was the second publicly traded company in the world to hit $1 trillion market capitalization (just after Apple). The company offers bold new ideas as a retailer and is under an intense pressure to deliver on its

> Employees and consultants say the Amazon workplace is the epitome of a “do more for less cost” environment. We recognize this is a hallmark goal of a cost-leadership business strategy. But ask yourself this key question: is it the type of high-pressure w

> The myStrategy box at the end of Chapter 2 asked how much you would be willing to pay for the job you want—for a job that reflects your values. Here, we look at a different issue relating to worth: How much is an MBA worth over the course of your career?

> As an employee, how could you persuade your boss that you could be a vital source of sustainable competitive advantage? What evidence could you provide to make such an argument?

> Are some of your strengths valuable, rare, and costly to imitate? How can you organize your work to help capture the value of your key strengths (or mitigate your weaknesses)? Are your strengths specific to one or a few employers, or are they more genera

> Personal capabilities also need to be evaluated over time. Are your strengths and weaknesses different today from what they were five years ago? What are you doing to make sure your capabilities are dynamic?

> Write down your own strengths and weaknesses. What sort of organization will permit you to really leverage your strengths and keep you highly engaged in your work (person–organization fit)? Do some of your weaknesses need to be mitigated through addition

> Do these types of macro-environmental trends affect your thought process about selecting a career field after college? Why or why not? Explain.

> What industries do you think may offer the best U.S. (or domestic) job opportunities in the future? Which industries do you think may offer the greatest job opportunities in the global market in the future? Use the PESTEL framework and the five forces mo

> Many people approach the job market by thinking about particular firms. What are some advantages of broadening this thought process to consider the industry-level factors of a potential new employer?

> Given the apparent leadership crisis at Facebook, should Mark Zuckerberg and/or Sheryl Sandberg be replaced? Why, or why not? Explain your answers.

> How much are you willing to “pay for pay” if your dream job is in management consulting or investment banking?

> Several elements of strategic decision making are highlighted in this chapter. Think of an important decision a firm has recently faced and choose either devil’s advocacy or dialectic inquiry to lay out some of the key factors the firm likely considered

> The chapter discusses several strategic leadership issues at Facebook. Several other firms are also noted in the chapter with some positive and some negative leadership results. Choose a firm mentioned in the chapter and discuss current controversial iss

> In the discussion about Merck (Strategy Highlight 1.2), the firm faces difficult situations about life-saving drugs. What is your assessment of Merck's consideration of various stakeholders in the two situations described?

> Corporate social responsibility has four components. Do you agree that public firms should address all four elements? Why or why not? If not, where should the firm "draw the line?” Please provide an example to explain your logic.

> The shared value creation framework provides help in making connections between economic and societal needs in a way that transforms a business opportunity. Taking the role of a consultant to Uber (ride-hailing service), discuss how Uber might move into

> What makes some strong cultures helpful in gaining and sustaining a competitive advantage, while other strong cultures are a liability to achieving that goal?

> The chapter describes the role of culture in the successful implementation of strategy. Consider an employment experience of your own or of someone you have observed closely (e.g., a family member). Describe to the best of your ability the values, norms,

> Why is it important for an organization to have alignment between its strategy and structure?

> Compare and contrast the strategic leadership of Mark Zuckerberg and Sheryl Sandberg. Which qualities for each strategic leader stand out to you, and why? Where would you place each individual on the Level-5 pyramid for strategic leaders (see Exhibit 2.2

> The chapter notes that global strategy can change over time for a firm. YouTube is one example in this chapter. Conduct a Web search of a firm you know to be operating internationally and determine its current global strategy position. How long has the f

> Strategy Highlight 10.2 discusses the failure of Walmart in Germany. Using the CAGE distance framework, discuss how Lidl should seek to be successful with its move into the US market.?

> Given the poor track record of M&As, what explains the continuing trend for mergers and acquisitions in many industries? What steps can a firm take to improve the chances of successful M&As?

> The chapter notes that some firms choose to outsource their human resource management systems. If a firm has a core value of respecting its employees and rewarding top performance with training, raises, and promotions, does outsourcing HR management show

> Nike is a large and successful firm in the design of athletic shoes. It could easily decide to forward-integrate and manufacture the shoes it designs. Thus, the firm has a credible threat over its current outsourced manufacturers. If Nike has no intentio

> While many new firms and industries are using a platform strategy, there are downsides to this approach. Explain two ways in which multi-sided markets may be a disadvantage for firms entering new markets.

> Patents are discussed as part of the invention phase of the innovation process in Exhibit 7.2. Describe the trade-offs that are made when a firm decides to patent its business processes or software. Is this same trade-off applicable to tangible hardware

> The chapter discusses seven different business models with a brief description of each. Given the changing nature of many industries, choose an industry you have some knowledge of and describe how the business model of a firm in that industry has changed

> Conduct a value chain analysis for Five Guys. What are its primary activities? What are its support activities? Identify the activities that add the most value for the customer. Why? Which activities help Five Guys to build its differentiated brand? Why?

> This chapter covers the choices firms make in entering new markets. Reflect on ChapterCase3 and discuss how Airbnb might have answered these questions in Exhibit 3.6.

> What challenges (as detailed in this ChapterCase) is Facebook facing? How should Mark Zuckerberg and Sheryl Sandberg deal with each of them? List each of the challenges, and make specific recommendations on how to address them.

> The “job to do” approach discussed with the Clayton Christensen milkshake example can be useful in a variety of settings. Even when we are the customers ourselves, sometimes we don’t look for better solutions because we get into routines and habits. Thin

> This chapter introduces three levels appropriate for strategic considerations (see Exhibit 2.3). In what situations would some of these levels be more important than others? For example, what issues might be considered by the corporate level? How should

> What lessons can be learned from the Theranos case?

> Why and how did Theranos get in trouble?

> Theranos was valued at some $10 billion at its peak. Did the investors overlook any red flags? Or was it simply FOMO (“fear of missing out”) that made them hurry to jump on the Theranos bandwagon? Why were so many people caught up in the hype around Ther

> What is the designated role of a board of directors? Did the Theranos board of directors fulfill this role? Why, or why not? If not, what was the motivation behind stacking the board the way Holmes did? Explain.

> What was the original mission and vision of Theranos founder Elizabeth Holmes? How did Holmes set out to fulfill her mission?

> Why has Google “failed” to develop other profitable businesses? Is Google’s strategy process of planned emergence to blame? Why or why not? Will Alphabet’s new structure with independent SBUs enable the company to innovate more and to find the next highl

> Do you think the reorganization is beneficial for Alphabet’s moon shots, now housed in their own business unit with profit-and-loss responsibility? Why, or why not? Explain.

> Why did Google restructure itself and create Alphabet? What is it hoping to accomplish? For additional insights, see Larry Page’s post announcing the restructuring at https://abc.xyz/.

> Apply again the three-step process for crafting a good strategy (see Section 1.1), this time to each element of the new master plan. On which steps of the new master plan has Tesla made the most progress? Explain. Also, what recommendations would you off

> Assume you are hired to consult IKEA on the topic of corporate social responsibility (see the discussion in Chapter 1). Which areas would you recommend the company be most sensitive to, and how should these be addressed?

> What can IKEA do to continue to drive growth globally, especially given its strategic intent to double annual store openings?

> Did it surprise you to learn that both a rich developed country (e.g., the United States and Australia) as well as emerging economies (e.g., China and India) are the fastest-growing international markets for IKEA? Does this fact pose any challenges in th

> List IKEA’s external and internal challenges. Looking at IKEA’s challenges, which ones do you think pose the greatest threat? Why? How would you address the challenges?

> Uber is still a much larger and more valuable firm than Lyft. Uber is also more diversified in that it offers services beyond ride-hailing, which is its core service. Do you think the strategic alliances with GM and Waymo could help Lyft to overcome Uber

> What are some possible reasons Waymo entered an alliance with Lyft? Are there any reasons Waymo would prefer Lyft over Uber as an alliance partner?

> GM invested $500 million in Lyft in 2016. What are some possible reasons GM entered an equity alliance with Lyft? Are there any reasons GM would prefer Lyft over Uber as an alliance partner?

> Describe the reasons Lyft entered strategic alliances with GM and Waymo. Are some reasons more important than others? Why or why not? Explain.

> Amazon.com continues to spend billions on seemingly unrelated diversification efforts. Do you believe these efforts contribute to Amazon gaining and sustaining a competitive advantage? Why or why not?

> At this point, Google and Facebook are the clear leaders in the digital ad space, which is predicted to continue to grow exponentially (reaching $175 billion in 2021, overtaking traditional advertising with an estimated $100 billion). Although Amazon’s m

> Describe the rationale behind Tesla’s new master plan. How does this new strategy help Tesla fulfill its vision? To view Tesla’s “Master Plan, Part Deux” in its entirety, see Tesla’s blog: www.tesla.com/blog/master-plan-part-deux.

> What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Jeff Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Why or why not? Hint: Do

> Describe Amazon's diversification strategy using Exhibit 8.8. What type of diversification strategy is Amazon pursuing? Explain.

> What are some of the challenges Netflix is likely to encounter internationally? What can Netflix do to address these? Explain.

> International expansion appears to be a major growth opportunity for Netflix. Elaborate on the challenges Netflix faces going beyond the U.S. market. Do you think it is a good idea to rapidly expand to almost 200 countries in one fell swoop, or should Ne

> Why is competition in internet streaming services heating up? Who is jumping into the fray, and why? How do these companies differ? What do you expect the result of this intensifying competition will be going forward?

> How did Netflix use innovation in its business strategy to gain and sustain a competitive advantage? What role did strategy, technology, and business models play? Explain in detail.

> JetBlue CEO Robin Hayes is contemplating adding international routes, connecting the U.S. East Coast to Europe. Would this additional international expansion put more pressure on JetBlue’s current business strategy? Or would this international expansion

> Consider JetBlue’s value curve in Exhibit 6.11. Why is JetBlue experiencing a competitive disadvantage? What recommendations would you offer to JetBlue to strengthen its strategic profile? Be specific.

> Which strategic moves has the team around CEO Hayes put in place, and why? Explain whether they focus on value creation, operating costs, or both simultaneously. Do these moves correspond to St. George’s understanding of JetBlue’s strategic position? Why

> JetBlue’s chief marketing officer, Marty St. George, was asked by The Wall Street Journal, “What is the biggest marketing challenge JetBlue faces?” His response: “We are flying in a space where our competitors are moving toward commoditization. We have t

> Does Tesla have a good strategy? Why or why not? How do you know? Consider: By summer 2019, Tesla's market cap had fallen by 30 percent to $45 billion, down from $65 billion a year earlier. Many wondered: Is Tesla in trouble?

> Despite its initial success, why was JetBlue unable to sustain a blue ocean strategy?

> Looking three to five years into the future, who do you expect will have a competitive advantage: Apple or Microsoft? Explain.

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