Chapter 10

Question 1

What is the difference between strategic- and operational monitoring & control?

Answer 1

strategic - early indicatoins of how operations strategy is being implemented
strategic is less clear-cut

Question 2

How do you control for risk?

Answer 2

1) dynamics of monitoring and control (tight vs. loose alignment)
2) deviation from alignment exposes the firm to risk (exceeding market needs/exceeding capability)
3) pure vs speculative risk
4) controlling risk through prevention, mitigation & recovery
5) intervention risk (type 1 error vs. type 2 error)

Question 3

How does learning contribute to strategic control?

Answer 3

1) single loop learning (compare -> develop -> innovation -> examine)
2) double loop learning (adding considering if it is relevant)

Question 4

What 2 types of trajectories are there?

Answer 4

• capability trajectory (skills at making decisions to support strategy)
• market trajectory (exposure to market vulnerability when challenged by radically new products)

Question 5

Why is distance important to determine learning potential?

Answer 5

The further away from current state, the harder it is to adapt; furthest away is radical change