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business
strategic management

Questions and Answers of Strategic Management

=+How will customers use the product?
=+What new benefits will the product provide the customer?
=+What other products are customers likely to consider as substitutes for
=+this product?
=+Will the product be compatible with the customer’s existing complements?
=+Will the product require significant new learning on the part of the customer?
=+How will the customer perceive the product’s ease of use?
=+Will the product require the customer to bear other costs?
=+Where will the customer buy the product?
=+Will the product require installation or assembly?
=+How much are customers likely to be willing to pay for the product?
=+Does the new project leverage the firm’s core competencies or sources of sustainable competitive advantage?
=+Will the project render some of the firm’s existing competencies obsolete or cannibalize existing products? If so, does the firm have a transition strategy to handle possible cash flow
=+Does the firm have the necessary manufacturing capabilities, and if not, will those capabilities be developed in-house or acquired externally(e.g., outsourcing)?
=+Will the firm need to hire employees with new skills?
=+Do one or more competitors have better capabilities for developing this project?
=+If the company does not develop this technology, are competitors likely to?
=+Will the company be able to protect its intellectual property through patents, copyright, trademarks, or trade secrets?
=+Should the firm seek to form a collaboration with a potential competitor?
=+Will the project help the firm build new capabilities that will allow it to achieve its strategic intent?
=+What other products/markets will the new capabilities enable the firm to develop?
=+Is this project a platform that will lead to a family of new products?
=+How long will the project take to complete?
=+Is the firm likely to be first to market? Is pioneering the technology a desirable strategy?
=+Is the market ready for the product? (For example: Are enabling and complementary technologies well developed? Will customers perceive the value of the technology?)
=+If the firm misses its target deadlines, what impact will this have on the potential value of the project?
=+Are there already appropriate suppliers and distribution channels?
=+How much will the project cost? What is the potential variability in these costs?
=+What will the manufacturing costs be? At what rate are these costs expected to decline with experience?
=+Will the firm need to bear other costs related to customer adoption(e.g., production of complements, installation, technical support, etc.)?
=+2. For what kind of development projects might a real options approach be appropriate?
=+For what kind of projects would it be inappropriate?
=+4. Identify a development project you are familiar with. What methods do you believe were used to assess the project?
=+What methods do you believe should have been used to assess the project?
=+1. What were the pros and cons of Sangamo pursuing its gene editing programs alone versus working with a partner?
=+2. Does the HIV program offer any special opportunities or challenges?
=+3. What do you think Sangamo should do regarding the HIV program?
=+Should it license the technology to a large pharmaceutical?
=+Should it form a joint venture with another biotech or pharma company? If so, who?
=+How would the collaboration change the bargaining power of customers or suppliers?
=+Would the collaboration impact the threat of entry? For example, is the partner likely to become a new competitor?
=+ Does the partnership raise barriers to entry for other potential entrants?
=+Would the collaboration impact the firm’s position vis-à-vis its rivals?
=+Would the collaboration influence the availability of complementary goods or the threat of substitutes?
=+How would the collaboration leverage or enhance the firm’s strengths?
=+ Does the collaboration put any of those strengths at risk?
=+How would the collaboration help the firm overcome its weaknesses?
=+Is the collaboration likely to yield a position of competitive advantage that is difficult for competitors to imitate?
=+ Is such a competitive advantage achievable without collaborating?
=+Would the collaboration leverage or enhance the firm’s core capabilities?
=+Is the collaboration likely to impact the firm’s financial strengths or weaknesses?
=+What are some advantages and disadvantages of collaborating on a development project?
=+3. Identify an example of collaboration between two or more organizations. What were the advantages and disadvantages of collaboration versus solo development?
=+What collaboration mode did the partners choose?
=+What were the advantages and disadvantages of the collaboration mode?
=+4. If a firm decides it is in its best interest to collaborate on a development project, how would you recommend the firm choose a partner, a collaboration mode, and governance structure for the
=+1. What industry conditions led to the revolution in audio distribution described above?
=+Which stakeholders stand to benefit most (or least) from this revolution?
=+2. Why did the music stores created by the record labels fail to attract many subscribers?
=+What, if anything, should the record labels have done differently?
=+3. What factors led iTunes to be successful?
=+4. How do you think a move away from owning music led to recordsetting music revenues?
=+3. When are trade secrets more useful than patents, copyrights, or trademarks?
=+4. Identify a situation in which none of the legal protection mechanisms discussed (patents, copyrights, trademarks, trade secrets) will prove useful.
=+6. What factors do you believe influenced the choice of protection strategy used for the innovation identified above?
=+ Do you think the strategy was a good choice?
=+1. What are the advantages and disadvantages of the creative side of Google being run as a flexible and flat “technocracy”?
=+2. How does Google’s culture influence the kind of employees it can attract and retain?
=+3. What do you believe the challenges are in having very different structure and controls for Google’s creative side versus the other parts of the company?
=+4. Some analysts have argued that Google’s free-form structure and the 20 percent time to work on personal projects is possible only because Google’s prior success has created financial slack
=+ Would Google be able to continue this management style if it had closer competitors?
=+Are there particular types of innovation activities for which large firms are likely to outperform small firms?
=+ Are there types for which small firms are likely to outperform large firms?
=+2. What are some advantages and disadvantages of having formalized procedures for improving the effectiveness or efficiency of innovation?
=+3. What factors should a firm consider when deciding how centralized its R&D activities should be?
=+ Should firms employ both centralized and decentralized R&D activities?
=+4. Why is the tension between centralization and decentralization of R&D activities likely to be even greater for multinational firms than for firms that compete in one national market?
=+1. What are some of the advantages and disadvantages of the agile development process?
=+2. How is agile development similar to or different from (a) the stage-gate process and (b) the parallel development process described in the chapter?
=+3. What are some of the likely changes agile development requires in managing development personnel?
=+4. What kinds of projects do you think agile development is appropriate for?
=+What kinds of projects do you think it might be inappropriate for?
=+What was the average cycle time (time to market) for development projects?
=+How did this cycle time vary for projects characterized as breakthrough, platform, or derivative?
=+2. What percentage of development projects undertaken within the past five years met all or most of the deadlines set for the project?
=+3. What percentage of development projects undertaken within the past five years stayed within budget?
=+4. What percentage of development projects undertaken within the past five years resulted in a completed product?
=+What is the firm’s return on innovation? (This measure assesses the ratio of the firm’s total profits from new products to its total expenditures, including research and development costs, the
=+2. What percentage of projects achieve their sales goals?
=+3. What percentage of revenues are generated by products developed within the past five years?
=+4. What is the firm’s ratio of successful projects to its total project portfolio?
=+What are some of the advantages and disadvantages of a parallel development process?
=+ What obstacles might a firm face in attempting to adopt a parallel process?
=+4. What kinds of people make good project champions?
=+How can a firm ensure that it gets the benefits of championing while minimizing the risks?
=+5. Is the stage-gate process consistent with suggestions that firms adopt parallel processes?
=+What impact do you think using stage-gate processes would have on development cycle time and development costs?
=+1. Why does Disney keep its development teams small?
=+2. What are the pros and cons of the teams being so autonomous?
=+3. Is Disney’s team approach mostly suited to creative projects, or would it work equally well in other kinds of industries?

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