Chapter 10 Flashcards
What is the difference between strategic- and operational monitoring & control?
strategic - early indicatoins of how operations strategy is being implemented
strategic is less clear-cut
How do you control for risk?
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)
How does learning contribute to strategic control?
1) single loop learning (compare -> develop -> innovation -> examine)
2) double loop learning (adding considering if it is relevant)
What 2 types of trajectories are there?
- capability trajectory (skills at making decisions to support strategy)
- market trajectory (exposure to market vulnerability when challenged by radically new products)
Why is distance important to determine learning potential?
The further away from current state, the harder it is to adapt; furthest away is radical change