Organizational Theory and Design Dersi 4. Ünite Sorularla Öğrenelim

What is a focus business-level strategy?

A focus business-level strategy would put all their efforts and resources to serve a narrow segment of a market well.

What are corporate level strategies?

A corporate-level strategy defines the scope of the firm or the organizational domain in which it competes. With a direction of growth, a firm can apply existing core competencies in creating value to a new market or a related industry. Internal growth can occur in an existing or a new business when an organization increases revenues, production capacity, and its workforce. External growth can be made through mergers, acquisitions and strategic alliances or partnerships. Two important forms of external growth are vertical integration (backward and forward) and diversification (related and unrelated).

What is core competence?

A Core competence describes unique skills, knowledge, and abilities of managers and employees in value-creating activities

What are the sources of functional-level strategy advantages?

Production 

Marketing & Sales

Research and Development (R&D) 

Information Systems

How does a strategic alliance create values?

A strategic alliance is any cooperative efforts of two or more organizations to achieve strategic objectives of developing, producing or selling products or services. An alliance creates values by leveraging complementary resources and capabilities of all firms for mutually beneficial gains.

What are the attributes that can lead to national competitive advantage?

Factor conditions;

a nation’s factors of production such as skilled labor. Factor conditions that are important are often not inherited (natural resources are inherited) but are created such as highly skilled employees, scientific and specialized knowledge, and the ability to innovate.

Demand conditions;

home market demand for an industry’s products or services. Demand conditions of the home market especially when the buyer’s needs anticipate or shape those of other countries (i.e. global trends).

Related and supporting industries;

that are internationally competitive, for example, home-based suppliers who can deliver cost effective inputs, especially those that can provide innovations along with long-term working relationships.

Firm strategy, structure, and rivalry;

that govern how companies are created, organized and managed as well as the nature of domestic rivalry. For example, powerful domestic rivalry can have a large positive stimulating effect on all firms in an industry by putting pressures for constant upgrading of the sources of competitive advantage.

What is competitive advantage?

Competitive advantage is a firm’s ability to generate superior economic performance and outperform its competitor because managers are able to create more value and meet customer needs in the marketplace.

What are the specialized resources of core competence?

Specialized Resources: Functional resources are the highly skilled personnel from an organization’s various functions that must be special, unique or difficult to imitate. Another is organizational resources which are the skills that are specific to the organization such as excellent top management team and possession of valuable and scarce resources such as raw materials, land and capital assets.

What is a differentiation strategy?

A differentiation strategy is adopted when a firm seeks to be unique and distinguish its products or services from others in the industry.

When is a cost leadership strategy adopted by an organization?

A cost leadership strategy is adopted when a firm tries to keep costs low compared to competitors to gain market share. Products or services offered must be perceived by customers as at least comparable to competitors in the industry. Typically, the company seeks efficiency of operations (efficiency orientation) by way of technological innovations in manufacturing, economies of scale, and/or lower input costs.

What does strategy mean for an organization?

A strategy determines an organization’s basic long-term goals and objectives; including courses of action and allocation of resources in order to reach those goals.

What is the difference between the prospector strategy and the analyzer strategy?

An analyzer strategy aims to maintain the best of both defender and prospector strategies by maintaining stability and efficiency through stable products and market areas, while pursuing flexibility and growth for new products or new markets. The prospector strategy on the other hand is to innovate and to grow by finding and exploiting new products and new opportunities. It is almost the opposite of the defender strategy.

What is a defender strategy?

The defender strategy is concerned with stability by aggressively seeking to hold on to current customers. This can be done with competitive pricing or producing high quality products.

What are the typical operative goals of organizations?

Employee and management performance goals 

Employee and management development goals

Financial and physical resources goals 

Performance goals

Innovation goals

Market goals

Social responsibility goals 

What does mission mean in an organization?

A mission is an organization’s reason for existence, its value and beliefs, and what it should be doing.

What are the sources of competitive advantage?

Physical Resources: Advantages from better location, possession of raw materials, and superior machines, equipment and factories.

Human Resources: Experienced and knowledgeable management teams, skilled labor, and motivated workers.

Financial Resources: Strong financial performance, and the ability to borrow or receive credits from financial institutions.

Learning Resources: Strong research and development programs leading to innovations and superior learning processes.

General Resources: Strong brand, good reputations, superior management systems, and strong relationships with stakeholders.

What are the manufacturing methods of an organization?

Flexible Manufacturing System (FMS): A method for producing goods using machines and computerized systems that is readily adaptable to changes in the type and quantity of the product being manufactured to improve process efficiency.

Lean Manufacturing: Involves continuous efforts by highly trained employees to reduce waste and improve quality at every stage of production process.

Just-in-time inventory system: An inventory management system aims to only have parts in inventory that are needed to make enough finished goods to meet immediate demand where parts are ordered and delivered to factory floor at the time they are needed.

What is the difference between business-level strategy and functional-level strategy?

Business-level strategy concerns with the competitive aspect of a firm’s products or services in its industry or market segment. It addresses how the firm can develop core competencies to exploit current opportunities, to explore new ones, or to balance between the two. Functional-level strategy concerns with developing distinctive competencies by functional areas or departments such as R&D or production as well as their ability to coordinate among various departments to provide competitive advantage.

What are the structural characteristics for value-creating function in Production and R&D departments?

PRODUCTION DEPARTMENT

Tall structure, Centralization of authority, Standardization, Strict hierarchy of authority, Mechanistic form

R&D DEPARTMENT

Flat structure, Decentralization of authority, Few rules and informal workplace, Collaborative teamwork, Organic form

What is the coordination ability of an organization?

Coordination ability refers to an organization’s ability to coordinate and direct its specialized resources to create the most value such as effective control systems and adaptable and open organizational culture.

How can the use of recent technologies such as social networking, big data analytics, and the Internet of things benefit a firm's functional departments?

Social Networking:the use of social media such as Facebook, Twitter, blogs and wikis to provide communication channels where people interact in an online community and share personal and professional information and opinions.

Big Data Analytic: the process of examining large and varied data sets such as text, photos and video to uncover hidden patterns, correlations, market trends, customer preferences and other useful information.

Internet of Things (IoT): the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these objects to connect and exchange data.