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business
human communication

Questions and Answers of Human Communication

1 Why was PepsiCo essentially organised into North American and international divisions? Why were there some variations in this structure? Examining the organisation structures outlined in this
explain the formal organisation needed to motivate staff and implement the chosen strategies.
develop the special organisation structures that are more likely to lead to innovative strategies;
outline the six main types of organisation structure and assess their advantages and disadvantages in relation to a particular strategy;
evaluate the importance of changing an organisation’s management style at the same time as changing its strategy;
understand the basic principles involved in designing the structure of an organisation to meet its chosen strategy;
evaluate critically the arguments that strategy and structure have a more complex relationship than that suggested by the early strategists;
10 If you were advising Honda Motorcycles about its strategies in the 1990s, what strategic approach or combination of approaches would you adopt? Give reasons for your views.
9 ‘Management theories are judged, among managers at least, by the demonstrable results that they deliver,’ comments Colin Egan. Apply this comment to the strategic routes described in this
8 The learning-based strategic route emphasises creativity in strategy development. Why is this important and how might it be achieved?
7 Why is negotiation important in strategic management?Why is it not better to have a strong leader who will simply impose his/her will on the organisation?
6 For organisations, such as the telecommunications companies, involved in lengthy investment decisions that take many years to implement, the uncertaintybased route forward, with its very short
5 Some have argued that the survival-based strategic route is over-pessimistic in its approach. Do you agree?
4 Is it possible for the prescriptive strategy process to be creative?
3 Take an organisation with which you are familiar and consider to what extent it plans ahead. How does it undertake this task? Is it reasonably effective or is the whole process largely a waste of
2 Why does context matter in strategy development?What are the main elements of context in the case of European telecommunications? How do they influence strategy development?
1 Charles Handy has described recent technological breakthroughs in global development as discontinuous.He commented that ‘Discontinuous change required discontinuous upside-down thinking to deal
4 How will the internet impact on travel in the future? Would it be more beneficial to use emergent strategies – if so, which strategies and how should they be used?
3 If you were an established internet provider, which strategic routes would you select to develop your presence further?Why? Give examples of current practice where possible.
2 Are there any strategic routes that you would definitely not employ as a small company? Why?
1 If you were moving into the market for internet travel as a small company, which, if any, of the five routes described in this chapter would you employ? You can also consider the use of classic
decide the extent to which a learning-based strategy is needed as part of an organisation’s strategy process.
explain the two main elements of the network-based route forward and comment critically on its usefulness;
outline the importance of the uncertainty-based route forward and comment on its relevance, depending on the organisation’s context;
identify the relevance of a survival-based route forward in the context of the circumstances of the organisation;
explain five approaches to strategy development that go beyond the classic prescriptive approach;
understand the importance of context in the development of strategy;
10 ‘Most firms rarely engage in explicit formal strategy evaluation . . . rather, it is a continuing process that is difficult to separate from normal planning, reporting and control.’ (Richard
9 ‘Merger and acquisition is the most common means of entry into new markets.’ ( John Kay) What is the evidence of success from such ventures? What are the strategic implications of your answer
8 With regard to new, fast-growing markets such as that for mobile telephones, the ADL matrix would suggest that weak and dominant companies face quite different strategic opportunities and problems.
7 A well-known German company is primarily engaged in supplying motor components such as car radios and gear boxes to car companies in the EU, such as Ford and Toyota. It is considering acquiring a
6 ‘Strategy evaluation is an attempt to look beyond the obvious facts regarding the short-term health of a business and appraise instead those more fundamental factors and trends that govern
5 What are the dangers, if any, of using quantified and precise evaluation criteria in strategy selection?
4 ‘Discounting techniques rest on rather arbitrary assumptions about profitability, asset deterioration and external investment opportunities.’ (Robert Hay) Explain the implications of this
3 Japanese companies have tended to favour payback criteria while US/UK companies have been more inclined to use DCF criteria in evaluating strategic options.What are the merits of the two
2 If you were developing strategy for a small company with 50 employees and a turnover of around $5 million, would you use all the selection criteria outlined in Section 10.1 or would you select only
1 Using Section 10.1 , what criteria would you consider were particularly important if you were evaluating strategy options in the following organisations: a small chain of petrol stations; a large
4 Which option, if any, would you recommend to Eurofreeze?Give reasons for your choice and explain the strengths and weaknesses of your choice.
3 Consider what other strategic analytical tools, if any, might provide useful insights into the strategic choice debate:you might wish to consider a PESTEL analysis, a Five Forces Analysis, generic
2 In what way does the use of the portfolio matrix help the strategic debate? And in what way might it mislead the strategic decisions?
1 What are the relative merits and problems of each option?
3 What strategy lessons can we learn from a market where the barriers to entry are low and the fixed costs are high for the market leaders?
2 Why has Nestlé adopted the strategy of attempting to take a large market share? Do you think that this is viable? What alternative strategies could Nestlé have adopted?
1 What are the main features of the Nestlé strategy in ice cream? How do they differ, if at all, from those of Unilever?
10 Communication of ideas to all those involved: how will this be done? Will we gain the commitment of the managers and employees affected?
9 The possibility of acquisition, merger or joint venture with other companies and the implications:have we fully explored other options that would bring their own benefits and problems?
8 Amount and timing of marketing investment and expertise required: do we have the funds? When will they be required? Do we have the specialist expertise such as advertising and promotions agency
7 New products and how they are to be developed: are we confident that we have the portfolio of fully tested new products on which so much depends? Are they real breakthrough products or merely a
6 New technical skills, new plant and costs of closure of old plant: do we have the skills? Do we need to recruit or hire temporarily some specialists?
5 Number of employees and, in the case of redundancy, any costs associated with this: what are the national laws on sacking people and what are the costs?
4 Tax liabilities and dividend payments: what are the implications, especially on timing?
3 Working capital requirements: do we have enough working capital?
2 Projection of cumulative profits: is it sufficiently profitable?
1 Capital investment required: do we have the funds?
3 Given Unilever’s market dominance, what strategies would you adopt if you were entering the ice cream market? How do you attack a dominant competitor?
2 What are Unilever’s main strengths? Where do its weaknesses lie? What, if anything, should Unilever do about its weaknesses?
1 What is the source of Unilever’s advantages over its competitors?
comment on the weaknesses in the classic process and suggest how these might be overcome.
describe the main elements of the classic prescriptive process for developing strategic management;
apply empirical evidence and guidelines to the various options in order to assist the selection procedure;
undertake an evaluation of strategic options in order to select the most appropriate option;
outline the main prescriptive procedures and techniques used in selecting between strategy options;
identify the six main criteria that might typically be used to evaluate the content of strategic options;
distinguish between the content and the process of the prescriptive approach;
9 Given that emergent approaches to strategic management are important, are there any circumstances in which you might use such an approach with regard to corporatelevel strategy options?
8 ‘Good corporate parents constantly search for ways in which they can improve the performance of their businesses.’(Michael Goold) Is it wise for corporate parents to interfere in the strategies
7 Using the Nokia case ( Case 9.2 ) as an example, what are the benefits and costs of focusing on one product area such as mobile telephones? Would you recommend Nokia to diversify in such a way
6 What are the benefits and problems of unrelated diversification?Do multi-product companies need to find degrees of relatedness in all their subsidiaries?
5 Can small companies benefit from any of the corporatelevel strategy concepts explored in this chapter? If so, which ones and why? If not, then does that mean that small companies cannot diversify?
4 Choose two organisations with which you are familiar, one from the commercial sector (perhaps from work or from your place of study) and one voluntary body(perhaps from a hobby, sport or society to
3 This chapter suggests that corporate headquarters should make the final decision with regard to acquisitions and other major activities. Do you agree with this?What are the difficulties of this
2 Using Siemens as an example (see Case 9.1 ), why would this company choose to acquire other companies rather than grow from within? What are the benefits and problems with such a corporate strategy?
1 Considering the Unilever case earlier in the chapter, does the ‘path-to-growth’ strategy represent an option available only to Unilever or can other companies benefit from such an approach?
3 Given the size of the operation, would you make any changes to Unilever’s strategic decision-making process?Are you convinced that the new structure and product focus will be any better at
2 To what extent is Unilever’s strategic decision-making process a result of its history?
1 In what way is the Unilever strategic planning process prescriptive? How, if at all, does it help innovation?
3 How important were the management teams to strategic choice? Did it really have to changes in 2004, 2007 and 2010?
2 What was the significance of the introduction of the new Android software for Nokia’s chosen strategy? Do companies always need such a technological development to ensure strategic success? Do
1 Why did Nokia select only one area for development?What is the strategic risk involved in selecting one area out of four?
2 What conclusions do you draw on the strategic benefits of operating a corporate strategy? Does the theory outlined in this chapter help?
1 Can Siemens ever achieve the profit margins of GE? What should it do now – continue to divest under-performing parts and invest in the profitable parts? Or is something more radical required –
outline the main corporate-level strategy tools available to a corporate headquarters.
use the product portfolio matrix to choose between corporate-level strategy options;
describe the role of corporate headquarters and identify the implications for strategy development;
identify the levels of diversification in corporate strategy and their implications for strategy options;
outline the benefits and costs of corporate-level strategy options;
define and explain the two main elements of corporate-level strategy;
11 It has been argued in this chapter that small businesses can develop competitive advantage over larger companies by offering higher degrees of service. What are the possible problems with this
10 Take a small student society or charitable institution with which you are familiar. What strategic options based on its resources does it have for development?
9 If key competitive resources are important, can they be acquired in the space of a few months or do they take years to develop? What are the implications of your response for the development of
8 ‘During the 1990s, top executives will be judged on their ability to identify, cultivate and exploit the core competencies that make growth possible.’ (Gary Hamel and C K Prahalad) Discuss
7 Identify the probable key competitive resources of the following: a charity like UNICEF; a major consumer electronics company; a holiday travel tour operator; a multinational fast-moving consumer
6 Choose an organisation with which you are familiar and identify the upstream and downstream parts of the value chain for that organisation. Which is the most important for that organisation or do
5 ‘A recurring theme to criticisms of strategic planning practice is the pedestrian quality of the strategic options that are considered.’ (George Day) By what methods might this legitimate
4 Take an organisation with which you are familiar, such as a small voluntary group, and consider the possibilities of expansion: apply the market options matrix and expansion method matrix to your
3 ‘Generic strategies are a fallacy. The best firms are striving all the time to reconcile opposites.’ (Charles Baden-Fuller and John Stopford) Discuss this statement.
2 Plot the position of News Corporation on the generic strategies matrix. What conclusions, if any, can you draw from this about future strategies for the company? (Note the hint in the ‘if any’
1 Do small firms have anything useful to learn from a consideration of the options available from generic strategies?
10 What are our competitors undertaking in the area of resources, skills and competencies?
9 How is the environment changing? What impact will this have on current and future core skills and resources?

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