Chapter 6 Discussion Question 6.1
Under the conditions of a broad generic business strategy, an organization is able expand
operations around costs or differentiation strategies. Although this may be favorable, there are a
few setback in practicing this type of strategic business arrangement. The method of cost
leadership enables an organization’s competition to price their products or services more
aggressively. This in turn has an adverse effect on the financial gain an organization hopes to
observe. Under a differentiation strategy, the consumer drives the ship. For, it is the consumer’s
whose preferences may change regarding a certain product or service. This may negatively
impact an organization’s total performance if the consumer no longer supports the current brand
or make of the product.
On the flipside, focus generic business strategies promotes a focus differentiation as well
as focus cost leadership (). Under these conditions, it may be observed that subtle changes in a
segment of the product or the entire product, may elicit changes in the overall performance of the
organization. It is also noted, that organizations demonstrating a broad generic strategy in
business are able to conform and create products
Chapter 6 Discussion Question 6.3
The varying strategies in business aid in placing emphasis on set priorities internally as it
pertains to the activities of the value chain. When considering the objectives of a cost leadership
strategy, the main focus of an organization is to reduce the overall costs of service and products
offered. These costs savings may come from vendors, manufacturing, suppliers of the
organization, or external expenses, such as sales and marketing. A great example of this cost
savings method is reducing the costs of transportation. Organizations spend millions of dollars
each year on transporting there goods across the nation or world. When routes or trucking lines
are able to consolidate the haul and reduce mileage it becomes a costs savings for the
organization.
Under the objectives of differentiation strategy, the organization works to highlight the
uniqueness of their products. Under this umbrella, all parties linked to the organization,
collaborate to deliver a valuable service or product to the consumer. The collaboration includes
parties such as distributors, manufacturers, vendors and suppliers. A great example would be the
display of logistical inbound. Here, the creation of a partnership may be observed between an
organization and its main suppliers. The partnership will be geared towards the security in the
delivery of the best possible materials the organization needs to operate.
In an integration strategy it may be observed the organization has a targeted focus on a
particular segment or segments. The primary objective here is for the organization to configure
ways to gain a competitive position above their competition. A great way to accomplish this is to
create and remain informed through a network of reliable channels. This is required from not
only the organization’s affiliates, but also from the organization’s consumers. Consumer
feedback is highly effective as it pertains to the collection of valuable information for an
organization. This allows the organization to gage the effectiveness of operations and the ability
to meet the needs of their consumers.
Chapter 7 Discussion Question 7.1
During the course of study, it can be identified there are five key stages of an industry life
cycle. These stages are growth, introductory, maturity, shakeout and the declining stage. These
key stages work to influence the strategies of an organization. A great example of the industry
life cycle is the example of the camera era. We saw the digital camera world go from new to
high to low. A few camera manufactures even completely halted their operations altogether
closing their doors forever.
During the first phase, the introductory stage, organizations place great emphasis in
research, development and creation. In hopes of effectively reaching the target consumer base,
organizations spend a great deal of their resources advertising and promoting their products and
services. Because an organization is trying to establish their purpose to consumers, a fair amount
of resources are spent during this stage.
During the second phase, the growth stage, the demand from consumers increases greatly.
All the efforts of the introductory stage has hopefully paid off, and consumers have a fine
understanding about the organization and the products offered. It is during this phase where the
fine tuning is observed by way of facility and process improvements.
During the third phase, the shakeout stage, the competition among other industry
organizations increases. For the weaker, less competitive competitors, this may be a defining
point as usually this is the point where those organizations are forced out of the market.
During the next phase, the maturity stage, the organization has indeed placed their stamp
on the industry. Product sales are most likely at their highest and the organization in outward
appearance is thriving. On the latter part of this stage, organizations may also notice the initial
stages of decline. Organizations may be at peril trying to maintain financial status as the profit
margins start to decline. This may also be a defining moment for organizations as new strategies
are implemented to retard the steady decline.
The last phase, the declining stage, is where the industry has taken just about all it can
and the consideration of maintenance, consolidating, and lastly exiting becomes a real
consideration for an organization or industry. The companies facing the declining stage is
strongly considering how to hang on to the loyal consumer base for as long as possible. For once
this population is consumed, the organization will have a difficult time remaining in existence.
Chapter 7 Discussion Question 7.2
One of the greatest examples of the use of innovation is the exotic automobile giant
Tesla. The organizational background of this automotive manufacturer concentrates on the
manufacturing of full electric cars. Throughout its existence, the company has used the main
types of innovations in their repute. Tesla demonstrated disruptive innovation by introducing
their line of electric vehicles for commercial consumption. This was a disruption to the market
because during that time there was not an electric vehicle available to the public. Tesla
demonstrated the principles of incremental innovation as they evolved to improve their models
by enhancing speeds and ranges in their product line. Tesla also demonstrated architectural
innovation by enhancing the earlier model of their vehicle line to a more sleek, more family
friendly sedan and marketing to a wider audience of consumers. Tesla has truly utilized the three
types of innovation during the course of their history. The company continues to be a luxury car
of much desire for families and individuals alike.
Chapter 7 Discussion Question 7.4
The definition of low technology innovation encompasses the development of products in
which the use of enhanced technology is not required (). This form of innovation may also
impact an organization’s values and principles. A great example of an organization which uses
low technology innovation is the entity, LifeStraw. This invention allows for drinking water to
be filtered, up to one thousand liters worth. The creators has focused on providing safe drinking
water to anyone, anywhere. There are a few additions to the product line which all work to aid in
improving the quality of a basic life necessity. Originally, the filtration device was for individual
in under developed nations to assist with the obtaining of cleaner drinking water. Presently,
these products are sold all around the world and the consumer base has greatly increased. This a
great example of how a small, non-technical object can have a tremendous impact across the
realm of many walks of life.
Chapter 8 Discussion Question 8.1
The best method for gaining a competitive advantage is via the business level strategy.
This strategy allows an organization to be able to take certain actions in order to be able to
provide the consumers with the best value possible all while gaining an advantage over
competitors. The definition of differentiation strategy is the process of making services and or
products easily distinguishable from others. Corporate level strategy involves the ability to
identify and decide the geographical specifics in which products are sold. For example, more
than likely, there would not be beach supply stores located in the mountains. These shops would
be located in a region where the products are highly relatable to the environment. The strategic
decisions behind the substantial growth of Walmart is part of the corporate level strategy. The
introduction of supermarket type shopping center, the retail giant increased the amount of
products for consumer consumption. Walmart has also increased the variety of consumers they
are able to serve.
Chapter 9 Discussion Question 9.1
The definition of horizontal integration involves the combining of competitors,
facilitating industry consolidation (). There are many successful organizations which choose to
collaborate with competitors of the same industry to place an aggressive stamp in the industry.
The recent merger of Amazon and Whole Foods, is a great example of this concept. Although
Amazon and Whole Foods has a varying consumer base, there are some similarities. This is a
smart move for Amazon. The company is positioning to cross over into retail foods. This move
will increase the competitive edge of both organizations. Amazon offers shipping around the
world and Whole Foods offers products for consumption. Linked together, the two organizations
will be able to reach a broader range of consumers. A few disadvantages involves the inability to
ship certain foods for risk of spoiling. Another disadvantage involves the resources Amazon may
have to utilize in order to successfully ship goods for consumption. There are different
parameters when measuring edible products for storage and shipment. Amazon may have to
invest some serious money to create the safest environment possible.
Chapter 10 Discussion Question 10.3
Upon some consideration, I partly agree with the viewpoint regarding a semi-globalized
world. There are some connections around the globe where individuals are able to engage in
professional conduct, however there is still a good majority who are disconnected. Over the past
decade, we have seen an explosion in social media outlets such as Facebook, Twitter, and
Instagram. This will only continue to grow and develop as new generations and inventions come
to the light.
Globalony appears to be an issue in regards to globalization. The definitive meaning is
expressed as the tendency of an individual to use resources of convenience instead of taking the
appropriate efforts and seeking for reasonable resources. This severely hampers the ability to
utilize critical thinking skills.
