L9 Strategic Renewal

Question 1

What has to be done in a strategic renewal

Answer 1

constantly scan the environment

Question 2

When change in an organization?

Answer 2

when you are most successful

• you are slower in noticing or implementing things
• be careful of agile startups

Question 3

If a company operates in a single product market, what is the best organizational structure for it?

Answer 3

Functional because we only have one product (with different products different divisions)

Question 4

related linked diversification vs. related constraint

Answer 4

linked = less and less overlap in markets

Question 5

If a company relies entirely on internal capital markets for its operations, what is a most likely org. structure for it?

Answer 5

divisional structure?

Question 6

internal capital market logic?

Answer 6

nothing is shared, fully independent units (ability to transfer cash between divisions, Berkshire Hathaway, general electrics)

Question 7

How to decide the type?

Answer 7

Look for synergies

Question 8

Ambidexterity

Answer 8

Ambidexterity is the ability to use both the right and left hand equally well.

Organizational ambidexterity refers to an organization’s ability to be efficient in its management of today’s business and also adaptable for coping with tomorrow’s changing demand.
(marry exploration and exploitation)

Question 9

McKinsey’s Three Horizons of Growth

Answer 9

1. horizon (current things, core business)
2. horizon (similar innovating on core business)
3. horizon (ideas which are much more radical)

Question 10

how much of the budget goes into the horizons?

Answer 10

1. horizon (current things, core business) 70%
2. horizon (similar innovating on core business) 20%
3. horizon (ideas which are much more radical) 10%

Question 11

How is it fore medium sized technology driven firms?

Answer 11

1. horizon (current things, core business) 45%
2. horizon (similar innovating on core business) 40%
3. horizon (ideas which are much more radical) 15%