Extended entreprise

Question 1

State the three perspectives on the business environment

Answer 1

It’s out there (focus on generating knowledge)

We’re part of it (focus on building relations)

It’s part of our firm (extended enterprise view)

Question 2

List Spekman & Davis’ three statements about the extended enterprise

Answer 2

The extended enterprise…

…goes beyond coordination work flows and logistics

…builds on the idea of expanding the borders of the firm to comprise information exchange, knowledge sharing and learning/motivation

…uses incentive systems that value cross-functional and
inter-organizational thinking and working

Question 3

Name six risks associated with supply chain flow

Answer 3

1. Goods flows – difficulties of meeting customer demand (capacity/quality/flow/etc)
2. Information flows (errors/limits/asymmetries)
3. Monetary flows (financial viability/currency risks)
4. Security risks (information leaks/increased leakage costs/theft)
5. Risk of opportunistic behavior (free riding/exploitation)
6. CSR-related risks (more actors who can act irresponsibly)

Question 4

Name five ways of handling risk

Answer 4

• Avoid
• Transfer
• Prevent/Reduce
• Share
• Assume

Question 5

Name three root causes to the lack of a CSR perspective

Answer 5

Exaggerated divide between business and society (providing social benefits does not necessitate sacrificing profits)

Failure to see negative externalities (pollution, failing communities) having negative internal consequences for firms (staff that are in bad health and are badly educated, etc.)

View of firms as self-contained entities (whose responsibility is to generate profit) have led to intense intra-industry competition & low innovativeness

Question 6

Name three ways of creating shared value

Answer 6

1. Reconceiving products and markets.
2. Redefining productivity in the value chain.
3. Enabling local supportive industry clusters.

Question 7

What should be considered when talking about extended enterprise?

Answer 7

• Definition
• Spekman / Davis description
• Six risks
• How to handle risks