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UMSD7T-15-3 – Strategic management (business, international and management) 20sep_1

Strategy and Innovation – Portfolio Test 3
Question 1

True or False?
Path dependency not only impacts on the strategic choices a firm considers and makes, it also influences the expectations of key stakeholders – shareholders, regulators, media etc. An approach in the industry becomes the expected norm and managers are challenged if they go against that norm. Ultimately the approach becomes taken for granted and not even thought about. 
Question 2

Kim and Mauborgne’s strategy canvas depicts the ‘as is’ value curve and ‘target’ value curve by plotting competitive factors against which of the following?

The amount of each competing factor (e.g. in the hotel industry the number room types)

The perceived quality or value as rated by customers)

The level of fit to customer’s needs derived from senior managers interviewing customers and non customers

The difficulty competitors have copying each competing factor

Question 3
Which of the following is at the core of the Blue Ocean strategy perspective?


Possessing a small number of unique and difficult to copy competencies that enable the firm to do things others can not


Looking across and challenging existing industry boundaries to create uncontested market space


Seeking a series of resource advantages. As competitors match an advantage the firm has moved on to a new source of advantage


Choosing a position in an industry and then aligning all the activities in the firm to that choice

Question 4
Which of the following were competing factors in the ‘as is’ value curve for Blockbuster and other video rental stores
(Select ALL that apply)


The customer value delivered by the video store offering.


Number of copies available in store of new release hit films


Rental price


Proximity of physical store to residential areas


Number of Stores

Question 5
True or False?
As a product or service passes through its life cycle – from invention to maturity – a dominant design will emerge in an industry. At early stages of the life cycle there will be wide variations in the components used and also in the product and production architecture. However, in maturity, when a dominant design is established, the architecture will be set  and often taken for granted, with competition taking place on changes to components.
Question 6
Which of the following are symptoms you will tend to see if a firm has misinterpreted architectural innovation as component or modular innovation?
(Select ALL that apply)


Legacy processes and systems (e.g. IT systems) hinder the transitioning to a new architecture


Change is being interpreted through existing, usually effective, frameworks (e.g. capital allocation processes, capacity planning) and explained by ma

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