QA

Final Study guide Chapter 7-12 Winter 21

Chapter 7 - Innovation

1. Understand the stages of innovation process. The 4 I’s…

2. Understand industry life cycles from intro to decline

3. Understand the “crossing the chasm” framework and how that impact strategy with each market and stage in the industry life cycle.

4. Understand the 4 different types of innovations in the markets-and-technology framework. (incremental, radical, architectural, disruptive)

Chapter 8- Vertical Integration and Diversification

5. Know the difference between Business Strategy, (how) and Corporate Strategy, (where). Define the three “boundaries” or dimensions of which it is accessed; (1) industry value chain, (2) products and services, and (3) geography (regional, national, or global markets). And understand which of those dimensions is addressed by either Vertical Integration or Diversification

6. Understand the purpose of the Value Chain and how it is used in vertical integration

7. Describe and evaluate different types of corporate diversification, (Single business, dominant, related and unrelated)

8. Understand the BCG matrix and how the tool is used to determine a firm’s SBU’s and portfolio of products. Invest/Build, Harvest/Divest, Hold

Chapter 9 – Mergers/Acquisitions

9. Understand the difference between mergers and acquisitions, and explain why firms would use either as a vehicle for corporate strategy. There are 3 main reasons.

10. Understand the Build, Borrow or Buy framework and how it impacts decisions for firms.

11. Understand the difference between the Strategic Alliance options, (Non-equity, Equity, Joint Venture)

Chapter 10 - Globalization

12. Explain why companies compete abroad, and evaluate the advantages and disadvantages of a global strategy

13. Understand the 4 strategies MNEs can pursue when competing globally.

14. Understand the 4 components that make up the CAGE framework in determining whether or not a company should expand globally. CAGE helps determine the attractiveness of foreign target. Most of the costs and risks involved in expanding beyond the domestic market are created by distance.

Chapter 11-Organizational Design

15. Organizational design is the process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization. Understand and explain the three key components (Structure, Culture and Control)

Chapter 12-Ethics and Governance

16. Understand the shared value framework as identified by Michael Porter.

17. Understand how ethics impact a company