Lecture 6 Flashcards
What are the 4 stages of the Industry S curve?
Introduction, Growth, Maturity, Decline
What are the features of the Introduction stage in the Industry S curve?
Demand limited to early adapters, Rapid product innovation, possible poor design and frequent design changes, few competitors. Key to success factor product innovation
What are the features of the Growth stage in the Industry S curve?
Rapidly increasing market penetration, standardisation and rapid innovation, design quality improves and emergence of dominant design, New entries, mergers and exists for competitors. Key success factor process innovation
What are the features of the Maturity stage in the Industry S curve?
Mass market and repeat buying, diffused technical knowledge and incremental improvement, tend to commoditization, more exits and price competition increases. Key success factors Cost efficiency/ scale efficiency.
What are the features of the Decline stage in the Industry S curve?
Demand decreases to obsolescence, little innovation, differentiation difficult, more price wars and exits. Key success factors low overheads and rationalising capacity
What are cons of the industry lifecycle?
Life cycle phases and industry boundaries hard to see, too generic and offers little guidance on how existing businesses should adapt
Name dimensions of industry development
Convergence vs divergence, Concentration vs fragmentation, Expansion vs contraction
Name two types of Industry changes
Architectural: change of existing relationships (changes to the business model)
Non-architectural: changes through existing relationships
Name the external drivers of change
Political, Economic, socio-cultural, technology, Institutional pressures (shareholder demands, mergers and acquisitions) and Competitor actions
Name the drivers of strategic changes
Contingency view (External driver, take opportunities, counter threats), Business benefit view (internal driver, pursue cost leadership, differentiate from competition), Institutional view (Forced to copy others, be seen to be doing something, useful in uncertain situations)
What are the two main ways of managing change?
Forecasting (quantitative predictions on future events - single point or range forecast depending upon uncertainty degree), Scenario planning
What is scenario planning?
Scenario planning involves combining contextual factors to create a series of unique scenarios to aid future development
Name the two types of changes to an organisation
Revolution - Disruptve turnaround, radical and comprehensive, usually starts with activists and leaders. Key factor of strong direction
Evolution - Uninterrupted improvement, moderate and piecemeal, gradual, requires everyone’s involvement. key factor of a learning culture.
List the barriers to change.
Organisational routines, Social and political structures, Conformity, organisational systems, Investment lock-in, system lock-in
What are ways of overcoming barriers to change?
(Lewin 1947, Unfreeze, change, freeze)
Crisis, Communication, change in organisational structures (e.g. new leadership), disposal of underperforming businesses and structures, restructuring external relationships
