Strategy Creation & Change

Question 1

What are some possible Strengths that an organization can have when doing a SWOT analysis?

Answer 1

Strong brand reputation Recognized, loyalty customers

High market share Often suggest competitive pricing

Uniqueness Regarding technology/quality/capabilities

Efficient supply network Reducing cost, fast delivery times, high flexibility. Long-term partnerships

Financial position. Cash flow, access to investments/funding

Skilled and motivated employees. Strong company culture that is hard to copy

Question 2

What are some possible Weaknesses that an organization can have when doing a SWOT analysis?

Answer 2

High operational costs Inefficient production, costly suppliers (relying on a few ones)

Lack of innovation Outdated products, not meeting customer needs

Weak marketing presence Limiting growth potential

Poor leadership and bad organization culture. Affecting employee performance (low motivation)

Limited financial resources. Insufficient cash flow or depts.

Question 3

What are some possible Opportunities that an organization can have when doing a SWOT analysis?

Answer 3

New markets Emerging markets with new types of customers and needs

Technology Innovation, improving and optimizing products and processes

Trends Sustainability and digitalization for instance

Potential market growth Depends on the market but: (Above 15-20% sales growth is generally good. For mature companies around 5% can also be considered good)

Question 4

What are some possible Threats that an organization can have when doing a SWOT analysis?

Answer 4

Competition Low barriers to entry market

Change For instance customer needs, emerging technologies making the product obsolete

Supply chain distribution Bottleneck, risk of crisis like wars, pandemic, politics

Question 5

How do we “move forward” after conducting a SWOT analysis?

Answer 5

Short term
1. Leverage strengths.
2. Address weaknesses. Implement cost-cutting measures, negotiate with suppliers
3. Capitalize on opportunities. Target emerging customer segments
4. Mitigate threats. Build cash buffers

Long term
1. Develop core strengths. Invest in r&d to cultivate innovation
2. Address weaknesses. Upgrade machinery, technology, develop skills, coaching, learning
3. Explore opportunities. Expand into new markets, creating a competitive edge
4. Build resilience against threats. Risk management, diversify revenue streams

(short is more about profit and long is more about innovation and staying relevant)

Question 6

Explain McKinseys 7-s model and what questions could be answered for each “S”

When analyzing an organization

Answer 6

Structure. (Hierarchy, departmentalization) Is the structure aligned with the company? Does it facilitate or hinder communication?

Systems. Processes and daily operations. Are they efficient, supporting strategic goals?

Style. Leadership style, corporate culture. Does it encourage and motivate?

Strategy. Plan for competitive advantage, business model, goals. Is it clear? Feasible? Fit?

Staff. Do the employees have the right capabilities, knowledge?

Skills. Are the skills aligned with the company’s needs? Is there a gap?

Shared values. Guiding all aspects. Are they well defined and shared across the company?

Question 7

Explain the Star model and what actions could be implemented?

Answer 7

Strategy: What is the organization’s strategic direction? Is it clear and effectively communicated?
Structure: How is the organization structured? Is there a mismatch between the structure and the strategy?
Processes: Are there efficient processes in place? What processes may be creating bottlenecks?
Rewards: Are the incentives aligned with the organization’s goals? Do employees feel motivated?
People: Do the employees have the right skills and mindset to implement the strategy? Is there a culture of collaboration?

What to do
Strategy: Clarify strategic objectives and ensure alignment across the organization.
Structure: Consider a more flexible organizational structure for collaboration and fast decision-making.
Processes: Streamline processes to eliminate bottlenecks and enhance efficiency.
Rewards: Reward system to get desired behaviors that support the strategy.
People: Invest in training and development programs

Question 8

What are Porter’s Five Forces and their impact on industry competition?

Answer 8

Potential New Entrants:
When it’s easy for new companies to enter the market, competition increases, making it harder to keep customers and lowering profits.

Bargaining Power of Suppliers:
If suppliers are strong, they can raise prices or lower quality, which hurts profitability.

Bargaining Power of Buyers:
When buyers have a lot of power, they can negotiate for lower prices or better deals, which squeezes profit margins.

Threat of Substitute Products:
If there are many substitutes, companies might need to lower prices or improve quality to keep customers.

Competition (Rivalry Among Firms):
High competition between existing companies can lower profit margins and increase the need for innovation.

Question 9

Explain Kotter´s Change model & what could be done in each step in an organization

Answer 9

1. Create a sense of urgency. Emphasize the need for change by presenting data
2. Build a guiding coalition. Form a group of managers/leaders that can drive change.
3. Form a strategic vision. Outlining the desired outcome of change
4. Communicate the vision. Involve employees to take ownership of the change
5. Enable action. REmove obstacles that prevent the process
6. Short-term wins. Celebrate small victories to build momentum
7. Maintain progress. Keep focus on the change, avoid complacency.
8. Publicizing success. Inspiring further commitment

Question 10

Describe Carnall’s Coping Cycle and how to address these challenges in an organization.

Answer 10

Shock: Initial surprise or overwhelm when change is announced.
Denial: Refusal to accept the change or its implications.
Resistance: Expressing frustration or anxiety about the change.
Exploration: Actively exploring the change and its effects.
Acceptance: Gradual acceptance of the change and commitment to new directions.
Commitment: Full integration of the change into daily routines.

Shock. Communicate the change, informational sessions.
Denial. Engage in discussion. Provide forums for employee to post concerns
Resistance. Workshops, involve them, create support networks.
Exploration. Encourage risk-taking
Acceptance. Share success stories
Commitment. Hold feedback sessions/check-ups

Question 11

Explain Gleicher´s change formula, and why the new one emerged

Answer 11

Old one:
D PV >C

New one
T x P x P > (C - PE)

V = Vision. The things we do today, we couldn’t have imagined a few years ago. In a complex context it’s hard to define a clear vision. Leader seems to put more effort on a shared purpose instead.

P = Process. Having a detailed process can be hard to formulate, instead focus on learning and celebrating progress.

D = Dissatisfaction. Instead of focusing on that, focus on building trust, promoting honest conversation, innovation and sharing of ideas.

C = Cost. But changed into positive emotion as well, since they are key for building renewable/innovative capabilities.

Question 12

What are the four parts of the BCG Matrix, and how is each characterized?

Answer 12

Stars: Leader products and often requires significant investments, like the iPhone/Tesla
Question marks: Products that have potential but need substantial investment to increase market share, like electric scooters
Cash cows: Products that generates more cash than is needed to maintain market position, like coca cola, microsoft
Dogs: Products that don’t generate much profit and might be a candidates for divestiture

Question 13

What does Osterwalders business model framework include? How to implement the framework in a strategic plan?

Answer 13

Key activities, key partners, key resources, cost structure, revenue streams, value proposition, customer relationships, customer segments, channels.

Do a gap analysis
How does the value proposition need to change
How does the cost structure need to change
What key resources are missing
Connect to customers with our own world, very high level

Question 14

How to implement the congruence model?

Answer 14

1. Assess the current state. According to the five components. Work, People, Structure, Culture and Environment
2. Identify gaps. Look for misalignment. Inefficiencies
3. Plan change. A strategy that redefines roles, breeds new talent, restructures teams, cultivate a motivating culture, and adapts to external forces.
   4- Implement it. Communicate it
4. Assess it.

Question 15

What are the silent killers of strategy implementation?

(Pregmark & Beer)

Answer 15

Quality of direction
Ineffective top team
Top-down or Laissez faire senior management style
Unclear strategy, values and priorities

Quality of learning
Poor vertical communication
No adequate delegation of authority

Quality of implementation
Poor coordination across functions and businesses
Inadequate down-the-line leadership skills and development

Question 16

How do one adress the silent killers of strategy implementation?

Answer 16

Enhance Leadership: Make the top team more effective and encourage a teamwork approach.

Clarify Direction: Clearly define and share the strategy, values, and priorities.

Improve Communication: Set up open lines for communication and give employees more decision-making power.

Foster Coordination: Create teams that work across different departments to improve collaboration.

Develop Leadership Skills: Provide training for lower-level leaders to help them build their skills.

Question 17

What are activity systems, and how do they contribute to competitive advantage?

Answer 17

Activity systems use unique resources and capabilities in the right market positions. They come from a good fit between primary (sales, marketing, operations) and supporting activities (r&d, HR, procurement) in the value chain.

By themselves, activities don’t add much value, but when they work well together, they help a company build, improve, and take advantage of its competitive edge. The structure = how different activities support each other

Question 18

Explain organizational culture & the iceberg phenomenon

Answer 18

All the written and unwritten rules, what is important and what is expected what is celebrated, what is talked about, what is not addressed, how to talk, what to wear
It institutionalized the type of behavior that is expected from people.

On the top: Visible results and events, patterns of behavior
Under the surface: System structures, mental models (how we think), core beliefs (purpose), vision

Question 19

What to think about when wanting to change organizational culture?

Answer 19

1. By creating a system that encourages the shift you want to see. Change structures etc
2. Thinking about the whole iceberg. Consider underlying beliefs and values.
3. Creating a trapeze. Support employees to go out of their safety net, create environment where people want to take risks and experiment.
4. Being consistent as a leader, don’t create a gap (between what we say and what we actually do)
5. Act your way into new thinking. Actions influence thoughts.

Question 20

How do firms/products compete in the market?

Answer 20

“Be excellent in one, stand out in another and be good in others”

Performance: Primary operating features of the product.

Features: Additional functions that enhance basic use.

Reliability: Consistency in functioning without significant maintenance.

Conformance: Adherence to standards and specifications.

Durability: Expected lifespan before deterioration.

Serviceability: Ease of repair when needed.

Aesthetics: Design and sensory appeal (look, feel, smell, sound).

Perceived Value: Reputation of the product in the market.

Experience: Emotional impact on the consumer.

Status: Social effect and prestige associated with the product.

Social Use: Functionality in social settings.

Question 21

Explain how to analyse a company with regards to competition, customers and capabilities

Answer 21

Customers
Understanding which customers we have now, what are their needs and preferences. What do they value? Do this through customer feedback, research, market trends, customer behavior, purchasing patterns.

Competitors
Who are the main competitors and what are their strengths and weaknesses, market share compared to us, their price, and their offerings. How can we differentiate ourselves, what is our value proposition, maybe through quality, price or customer service

Capabilities
Assess our own strength and resources. What are we doing good, brand reputation, technology

Question 22

Define the market strategy when launching a new offering

Answer 22

1. Define the market. What are the boundaries, what are the objectives, why do we want to segment, what are the challenges and opportunities
2. Segment. What are the differences between potential customers
3. Target. What to target, how much, based on attractiveness, cost of service and organizational capabilities, what will we pursue
4. Position. How can we create a unique value proposition, what is our unique position on the market relative to our competitors
5. Developing an offering. Given our position, design our offer, tailor the products, services, marketing to match the needs of each market segment.

Question 23

What are the key components of targeting analysis and evaluation criteria?

Answer 23

Key Components:

Market Potential: Segment size, gross margin, contact cost, admin cost, growth rate.
Own Competitiveness: Current image, switching patterns, new entrants, customer needs.
Strategic Value: Increased loyalty, environmental impact, growth of customer base.
Ability to Execute: Necessary market funds, reach segment, change way of working, manage activities, budget.

Evaluation Criteria:

Feasibility: Can we do it? (money, resources, capabilities)
Acceptability: Does it pay off? (profitability, cost-benefit, risk analysis)
Suitability: Are we in the right position to do it? (underlying trends, SWOT, PESTLE)

Question 24

What are some factors that increase customers “Willingness to pay”?

Answer 24

Perceived Value. Brand reputation. Like iPhone, Nike
High quality. Quality controls
Unique features and benefits. Dyson, hello fresh
Emotional appeal. Social status. Loui Vuitton
Customer experience. Netflix
Market positioning. Coca cola. Product differentiation
Social and environmental values. Whole foods markets
Scarcity and exclusivity. Diamonds, jewelry
Cultural influence. Fidget spinners, air-up
Economic factors. Rolex

Question 25

What is strategic fit and what are its levels?

Answer 25

1. Simple Consistency: Just making sure activities match the strategy (like a low-cost airline keeping costs down). 2. Activity Reinforcement: Activities that help and boost each other (like how Apple’s R&D and marketing work together). 3. Optimization of Effort: Coordinating activities to cut down on waste and work more efficiently (like Toyota's smooth supply chain).

Question 26

What are the shifts in value offering and their characteristics?

Answer 26

1. Functional Value: Focuses on basic physical needs, ensuring customer satisfaction and avoiding dissatisfaction. Customers are seen as passive consumers. 2. Solution Value: Integrates different products and services to fulfill emotional needs, leading to greater satisfaction and loyalty. 3. Experience Value: Addresses emotional and latent needs, adding meaning to the customer experience. Customers are viewed as individuals, creating opportunities for customer delight through relational interactions.

Question 27

What are the three approaches to managing ambidexterity in organizations?

Answer 27

**Sequentially:** Alternating between exploitation and exploration; useful for focused efforts but often impractical in dynamic environments. **Structurally:** Creating separate units for innovation while maintaining core operations; fosters creativity but risks disconnecting from existing capabilities. **Contextually:** Integrating exploration and exploitation within the same structure; leverages existing resources but may struggle with resource allocation.

Question 28

What are the three types of leaders needed for successful organizational transformation?

Answer 28

**Architectural Leaders:**They create structures for quick learning and set up opportunities for change. **Enabling Leaders:** They make it easier for entrepreneurial leaders by opening doors and giving them the support they need. **Entrepreneurial Leaders:** They are the ones who push for innovation and change, actually putting new ideas and strategies into action.

Question 29

What’s the difference between leadership and management?

Answer 29

**Management:** Focuses on traditional tasks like planning, budgeting, organizing, staffing, solving problems, and controlling processes. Managers take on roles as needed. **Leadership:** Challenges the status quo by creating a vision and setting a direction for change. Leaders communicate this new vision, involve people, and motivate and inspire others.

Question 30

What are the different power bases in leadership and how do they influence others?

Answer 30

1. Reward Power: Gives short-term positive effects by providing rewards for desired behavior. 2. Coercive Power: Uses punishment to influence behavior; also has short-term effects. 3. Referent Power: Based on personal relationships; works well in matrix organizations. (charisma) 4. Legitimate Power: Authority recognized by others; more accepted during crises or transformations. 5. Expert Power: Based on knowledge and skills; respected professionally. 6. Information Power: Comes from having valuable information and strong networks.

Question 31

What are the OCEAN traits in trait theories of leadership?

Answer 31

1. Openness: Reflects a person’s curiosity and creativity versus being practical and routine-based. 2. Conscientiousness: Indicates whether someone is hardworking and dependable or impulsive and careless. 3. Extroversion: Describes being outgoing and warm versus quiet and reserved. 4. Agreeableness: Measures helpfulness and trust versus being critical and suspicious. 5. Neuroticism: Indicates emotional stability, ranging from calm and secure to anxious and unhappy.

Question 32

What are the four styles of situational leadership?

Answer 32

Directing: At the start, team members don’t know much, so the leader gives a lot of direction but not much support. High direction, low support. Coaching: As team members gain some skills, the leader provides more support while still giving direction. Decreasing direction, increasing support. Supporting/Feedbacking: Team members become more capable, so the leader focuses on supporting and facilitating instead of directing. Balanced support and direction. Overseeing: When team members are fully capable, the leader steps back, giving low direction and high support. Low direction, high support.

Question 33

What are the key characteristics of transformational (charismatic) leadership?

Answer 33

1. Challenging the Process: Look for risks and opportunities; experiment. 2. Inspiring a Shared Vision: Envision the future and get others on board. 3. Enabling Others to Act: Promote collaboration and empower team members. 4. Modeling the Way: Set an example and plan for small wins. 5. Providing an Identity: Create a sense of belonging for the team. 6. Encourage the Heart: Recognize contributions and celebrate achievements.

Question 34

What are the five rules for leading in a digital world ?

Answer 34

This shifts demands on leadership from siloed and bureaucratic to nimble and customer-centric. Many leaders fear losing power, but here are five rules for leading in a digital world: 1. Communicate your leadership style. 2. Be a sense maker. Create meaning out of a messy world 3. Build X-teams. Flexible teams, cross, collaborate, linking resources and knowledge 4. Replace toxic tendencies with challenge driven leadership. Dont blame others 5. Build the system to make all this possible. Need structure so above steps can be taken. Need three types of leaders, entrepreneurial, enabling and architecting.

Question 35

What are the types of organizational structures and their pros and cons?

Answer 35

**Market-based:** Pros: Enhances market responsiveness; effective for unique products. Cons: Risk of incompatible systems and resource duplication. **Process-based:** Pros: Adapts quickly to demands; supports specialization. Cons: Difficult communication; hands-off approach. **Geography-based:** Pros: Responsive to country-specific needs. Cons: Limited cross-country learning; resource duplication. **Matrix:** Pros: Flexible decision-making. Cons: Confusion and slow decisions; unclear accountability.

Question 36

What does it take for a matrix organization to work?

Answer 36

Clear roles and responsibilities. Right-level judges. Managers who handle bigger issues. Rewards that go beyond narrow focuses. Strong teamwork and social networking. Integrative processes for strategic planning and decision-making (like the star model).

Question 37

What is a VUCA world, and how can organizations adapt?

Answer 37

A VUCA world means we face more Volatility (frequent changes), Uncertainty (hard to predict factors), Complexity (many unknown factors), and Ambiguity (difficult-to-interpret information). To fix this, organizations need to be ambidextrous, balancing current operations while being flexible and innovative to adapt to change. By creating flexible structures. Both improving existing products and exploring new opportunities. Encouraging innovation and investing in learning. Build cross functional teams to leverage diverse skills and perspectives.

Question 38

What does successful transformation demand?

Answer 38

**Clear Explanation of Why:** Connect change to the organization’s purpose. **Well-Functioning Process:** Maintain consistent momentum throughout. **Management Support:** Create conditions that enable change. **Leadership from the Right Level:** Operative leaders need to drive the change. **Local Incentives:** Start change efforts locally and expand outwards. **Clear Direction with Dialogue:** Provide guidance while engaging in honest conversations about key issues. **Fast Feedback Cycles:** Implement quick cycles of action and feedback for ongoing improvement To make change stick, use the star model to view the whole organization and adjust systems to encourage desired behaviors, allowing leaders to focus on bigger issues instead of small problems.

Question 39

How do you ensure a strategy fits the organization? | (The strategic fitness process)

Answer 39

1. Define Direction: Get clear on where we want to go and write down the overall purpose and main tasks in 2-3 pages. 2. Form a Task Team: Create a task team of around 10 trusted people from different parts of the organization. 3. Identify Barriers and Strengths: Figure out what helps or blocks us and what strengths we have. 4. Conduct Confidential Interviews: The task team interviews people without the management team knowing who they’re talking to. 5. Gather and Categorize Stories: Collect stories instead of a report to understand what’s going on, and put them into buckets. 6. Present Findings to Management: The team shares these stories in a 3-hour session with the management team. 7. Facilitate Dialogue: Have a conversation between the task team and management to make sense of everything

Question 40

What leads to failure in companies and how can they fix it?

Answer 40

**Causes of Failure:** Lack of clear strategy and strategic choices. Internal challenges like organizational failures and confusion about competition. Managers wanting to excel at everything, avoiding necessary trade-offs. Trying to meet all customer needs leads to confusion and diluted focus. Overemphasis on growth blurs strategies and lowers motivation. **Solutions:** Focus on deepening current activities instead of broadening efforts. Enhance the existing strategic position rather than chasing new customers. Set clear priorities and make necessary trade-offs. Improve internal communication and alignment around the core strategy. Regularly evaluate and adjust strategies based on market feedback and performance.

Question 41

A company´s identity is build up from five key aspects:

Answer 41

Purpose: Why we exist; our reason for doing what we do. Mission: What we do as an organization and for whom. Values: The qualities and character traits that guide how we operate. Vision: Where we are going and what success looks like. Strategy: How we will actually achieve our goals.

Question 42

What does "higher ambition" mean for organizations?

Answer 42

Increasing the total value created to/for/with all stakeholders. An approach to leadership consistent with achieving this aspiration. A way of transforming organizations to raise and reach their highest ambitions. Including innovation/transformation, economic, organizational and moral aspects. Firms with a strong purpose and clear direction from management outperformed

Question 43

Example Case. Standard chartered bank. How do they manage the global organization?

Answer 43

They use a strong matrix structure, leverage robust business lines and country managers, and emphasize collaboration along trade corridors. Their strategy focuses on being a trusted insider, encouraging idea sharing, hosting cultural initiatives, and maintaining short communication lines for effective implementation.

Question 44

How does employee engagement impact innovation, and what drives it?

Answer 44

Employee engagement directly boosts innovation by encouraging creativity and idea generation. In a high-trust culture, employees feel empowered to take risks, which is essential for driving innovation. **Key Drivers:** Challenge: Employees thrive when they are pushed to think outside the box. Freedom: Autonomy allows employees to explore and experiment with new ideas. Trust: A trusting environment encourages open communication and sharing of ideas. Support: Providing resources and backing fosters confidence in taking risks. Risk-taking: Encouraging calculated risk-taking leads to breakthrough innovations.

Question 45

Where does management often fail, and how can these issues be addressed?

Answer 45

**Mediocrity Signals:** Accepting average performance. **High Aspirations:** Failing to support innovation in practice. **Strategic ADD:** Constantly shifting priorities, causing confusion. **Lack of Insight:** Misalignment between management’s view and reality. **Irrelevant Vision:** A vision that doesn’t translate into actionable steps, leading to cynicism and lack of direction. **Solutions:** **Set Clear Expectations:** Establish and communicate performance standards. **Support Innovation:** Create a culture that encourages and rewards innovative ideas. **Stabilize Priorities:** Focus on key strategic goals and avoid frequent shifts. **Enhance Insight:** Regularly gather feedback and data to align with reality. **Align Vision with Action:** Ensure that the organizational vision is actionable and relevant, connecting it to day-to-day operations.