Lecture 11 (Organizational learning)

Question 1

Organizational learning meaning

Answer 1

a change in the firm that occurs as a function of experience

Question 2

Lower costs in org. learning achieved with:

Answer 2

-greater firm age
-greater firm size

Question 3

Competency traps

Answer 3

Experienced firms tend to constantly refine current, obsolete processes, rather than to try out new, better ideas

Question 4

Experience lock-ins

Answer 4

Excessive experience
often leads firms to overlook alternate technologies/processes adopted by younger, more
agile & alert competitors

Question 5

Causal Ambiguity

Answer 5

the situation where it is hard or even impossible to relate the consequences or
effects of a phenomenon to its initial states or causes

Question 6

Sources of causal ambiguity

Answer 6

1. Process complexity and interdependence
2. Elapsed time since process development
3. Unclear outcomes, outcomes with fuzzy performance

Question 7

When is experience benefitial? (regarding exp. similarity and causal ambiguity)

Answer 7

When there is experience similarity and causal ambiguity is low

Question 8

BCG matrix meaning

Answer 8

framework to evaluate the strategic position of the business brand portfolio and its potential

Question 9

Four categories of BCG matrix:

Answer 9

Star - high share, high growth

Question mark - low share, high
growth

Cash cow - high share, low growth

Dog - low share, low growth