Lecture 2: Strategy and Effectiveness - 2 Frameworks

Question 1

Porter’s Competitive Strategies

Answer 1

1. Differentiation Strategy
2. Low-Cost Leadership

Question 2

Miles and Snow’s Strategy Typology

Answer 2

= is based on the idea that managers should seek to formulate a strategy that matches the demands of the external environment

Question 3

Miles: Prospector strategy

Answer 3

= Indicators:
- Learning orientation
- Flexible
- Fluid
- Decentralized Structure

= Values:
- Creativity
- Risk-taking
- Innovation

Question 4

Miles: Defender Strategy

Answer 4

Indicators:
- Efficiency Orientation
- Centralizes Authority
- Tight Cost Control

Concerned with:
- Internal efficiency
- Control to produce reliable, high-quality products for steady customers

Example:
- Deutsche Bahn
- Stadtwerke München
- Lotto

Question 5

Miles: Analyzer

Answer 5

Indicators:
- Balances efficiency and learning
- Tight cost control with flexibility and adaptability

= Mix of prospector & defender strategy

= Maintaining a stable business while valuing innovation

Question 6

Miles: Reactor

Answer 6

= No clear organizational approach

= Design characteristics may shift abruptly depending on current needs