Diagrams/Figures you should be able to label completely and possibly provide a 1-sentence
definition for each part, or use to solve a problem:
A. The famous 3-bar graph that I use very frequently in class.
-​ Cost
-​ Price
-​ Perceived Value
-​ Surplus Value
-​ Profit
-​ Pricing Options
B. DIKW Data triangle
Wisdom - actionable knowledge
Knowledge - analyzing data
Information - organized data
Data - data points
C. BCG Portfolio (Growth Share) matrix
Star: high profit (share), high growth rate
Question Mark: low profit (share); high growth rate
Dog: low profit (share), low growth rate
Cash Cow: high profit (share), low growth rate
Frameworks you should be able to explain and define and identify each component:
A. DIKW Data triangle framework
B. Dr. Stewart’s 7 C Framework
C. BCG Portfolio (Growth Share) matrix (chapter 10)
From Lecture and Reading on Chapter 8: Industry and Life Cycle Stages
A. Be able to draw and label the 4 stages of the industry life cycle
*profits on y axis*
Innovation
Growth
Maturation
Decline/Renewal
B. Know the types of demand (markets) and typical strategies for each stage (this is a
diagram about life cycle characteristics).
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Introduction (differentiation)
-​ Innovation
Growth (differentiaion & low cost)
-​ Customer demand
Maturity (focus)
-​ Slowing demand
Decline (low cost)
-​ Negative demand
*Renewal*
-​ New segments/applications
C. Know the four organizational life cycle stages (names and 1-2 words to describe the
dominant challenge/problem).
Conception - customer education
Commercialization - production
Growth - scope/scale
Maturity - process, organization, future profits
Introduction - capital
Growth - scaling
Maturity - internal controls, future growth
Decline/Renewal - negative demand; major players
D. What are the advantages and risks of a “first mover” (reading)
Timing Advantage -​ Standard setting
-​ Switching costs
-​ Brand equity/reputation
-​ Suppliers
Size Advantage -​ Scale (cost/unit)
-​ Experience curve
-​ Scope
-​ Network
From Lecture and Reading on Chapter 9: Managing Innovation
A. What are the two over-arching types of innovation? Where might you typically find these
in the organizational life cycle?
Product Innovation - new product/service; earlier stages of the product lifecycle
Process Innoation - new activities within a company; reduce costs; boost efficiency; later
stages
B. What are the four degrees of innovation (reading)? Be able to offer a few word definition.
-​ Incremental: uses existing value chain & resources
-​ Amplifying: greater risk/reward; uses existing resources in a new market
-​ Disruptive: disrupt existing market with different value network; reconfigure value
chain & resources
-​ Radical: new value chains; must create demand; novel ideas
From Lecture and Reading on Chapter 10: Corporate Strategy
A. What is Corporate Strategy?
-​ The whole company
-​ What business are we in?
-​ Which industries to enter/exit?
-​ Defining Strategic Business Units
-​ Investment priorities
-​ Allocating resources
B. What are the two forms of integration? (from lectures)
Horizontal - acquire similar value chains
Vertical - acquire value chains before and after
C. What are the motivations for diversification?
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Growth - opportunities, avoiding decline/takeover
Market entry - overcoming barriers, avoiding development costs
Market power - pricing, bargaining, competition
Spreading risk - reducing variability
D. What are the two forms of diversification? Know what they mean/their characteristics.
-​ Related - horizontal/vertical/cross-sector; relatives value chain/industry
-​ Unrelated - different industry, different value chain
E. From reading: What contributes to unfavorable diversification performance? (reading)
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Attractive industries
Strategic rationale
Due dilligence
Capturing synergies
Acquisition premiums
Loss of focus
80% of M&A’s fail!!
F. From reading (and mentioned in lectures): what is the “parenting advantage?” Which
company was used as an example in class for a company that does this well?
-​ Berkshire Hathaway
-​ Headquarters has its own resource/capabilities (management and finance)
G. Know the BCG Growth Share Matrix well. (reading and lectures)
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Question Marks (Low growth, high share)
Star (high growth, high share)
Cow (high share, low growth)
Dogs (low growth, low share)
From Lecture and Reading on Chapter 12: Competitive Dynamics
A. Lecture: What is environmental scanning and environmental monitoring?
Scanning: process of watching/looking opportunities and threats
Monitoring: once you have identified, keeping tabs on certain things
From Lecture and Reading on Chapter 13: Strategy and Structure
A. Be ready to write a discussion about the relationship between strategy and structure.
-​ Strategy dictates structure
-​ Structure dictates strategy (structure confines strategy over time)
-​ *Strategy → structure (inertia) → ongoing strategy
B. What are the three structure facets of organizations?
1.​ Specialization
2.​ Centralization
3.​ Formalization
C. What are the three challenges that structure creates?
1.​ Communication
2.​ Coordination
3.​ Control
D. Be able to identify and know the characteristics of simple structures, functional structures,
and M-Form (Multi-divisional) structures.
-​ Simple - all report to one
-​ Functional - Divides company by functional area
-​ Multi-Divisional - separate lines of business
From Lecture and Reading on Chapter 14: Strategic Leadership
A. This is where Dr. Stewart discussed the 7-C’s. Strategic Management Framework
1.​ Customers
2.​ Competition
3.​ Core Competencies
4.​ Culture
5.​ Consistency
6.​ Collectives (teams)
7.​ Costs
B. From reading: Know the 3 implementation and control models and their basic
characteristics.
Balanced Score Card Model - considers stakeholders!
-​ Financial
-​ Customer
-​ Internal Process
-​ Learning & Growth
Value-Driver-Action Model
-​ Identifies key value drivers
-​ Outlines desired position for company
-​ Creates a list of actions
-​ Measures progress towards value driver
7-S Framework - better each Fit, the better the performance
-​ Strategy
-​ Structure
-​ Systems
-​ Style
-​ Skills
-​ Staff
-​ Superordinate goals
-​ Shared values
C. From reading: What are “lead” and “lag” metrics and their characteristics?
-​ LEAD Metrics
-​ Can directly affect these
-​ LAG Metrics
-​ Can indirectly affect thses
Know the 7 principles stated by Jim Collins and the examples he gave.
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2.​
3.​
4.​
5.​
6.​
7.​
What cause do you serve with Level 5 Ambition?
Will you settle for being a good leader, or will you grow to become a great leader?
How can you reframe failures as growth in pursuit of a BHAG?
How can you succeed by helping others succeed?
Have you found your hedgehog – Your personal hedgehog?
Will you build your unit into a pocket of greatness?
How will you change the lives of others?