Part 1

Question 1

Which three types of activities can be used in maximization and optimization of the core business?

Answer 1

1. Effectuate and scale
2. Learn and improve
3. Differentiatie activities

Question 2

What are the six main types of adjacencies to the core business?

Answer 2

1. New channels
2. New geographies
3. New customer segments
4. New business
5. New products/services
6. New value chain steps

Question 3

What are the three steps of launching a sustainable product in the corporate environment?

Answer 3

1. Forgetting
2. Borrowing
3. Learning

Question 4

What is Exploration?

Answer 4

Exploration is about meeting the needs of niche and emerging customers.
- Strategic initiatives emerging outside the scope of current strategy
- Aimed at entering new product-markt domains
- Creating new opportunities for future growth; dealing with emerging competitive forces

!!! EXPLORATION is associated with differentiation advantage !!!

Question 5

What is Exploitation

Answer 5

Exploitation serves the purpose of needs of current customers
- Strategic initiatives within the scope of current strategy
- Aimed at extending current product-market domains
- Maximizing short-term profits; dealing with existing competitive forces

!!! EXPLOITATION is associated with cost advantage !!!

Question 6

Explain the failure trap

Answer 6

The failure trap entails that targeting exploration rather than exploitation results in high experimenting costs, therefore new businesses develop without providing a benefit

Question 7

Explain the succes/competence trap

Answer 7

Exploitation results in a short-term benefit, but becomes absolete in the future

Question 8

Name the three senior team …

Answer 8

1 senior team shared vision
2 senior team social integration
3 senior team contingency rewards

Question 9

Explain senior team shared vision

Answer 9

Senior team shared vision serves as guidance to how the organization should look like in the future. It also facilitates consideration of different perspectives, gives a common attribute and understanding of conflict resolution

Question 10

Explain senior team social integration

Answer 10

Senior team social integration corresponds to social forces affecting the senior management team. It also facilitates negotiation, compromise and collaborative problem solving together with creating platforms for confronting viewpoints and critical debate.

Question 11

Explain senior team contingency rewards

Answer 11

Senior team contingency rewards indicates the extent to which each member of the team benefits form the entire team’s outcomes. They facilitate collaboration and working towards a common goal. It also decrease the competition inside teams and reward negotiation and mutual adjustment.

Question 12

Ceo’s should express transformational leadership behaviours. Name some

Answer 12

1. Inspirational motivation
2. Idealized influence
3. Intellectual stimulation
4. Individualized consideration

Question 13

The SE construct entails:

Answer 13

The simultaneous pursuit of opportunity and advantage-seeking behaviors

Question 14

Platform growth refers to

Answer 14

An increase in the number of customers. Activatinf initial network effects and generating early-stage platform adaption through value creation through diffrent groups

Question 15

Platform scaling refers to

Answer 15

Increasing value creating interactions. Sustaining competitive advantage in the long run as it enables not just enhanced value creation but also valure capture

Question 16

Direct network effects

Answer 16

When the value of the platform grows from interactions among similar user types

Question 17

Indirect network effects

Answer 17

Occur when the value of the platform increases for one user group as the number of complementary or related user types grow

Question 18

What are decision rules?

Answer 18

Heuristics to make decisions in complex and uncertain environments. Decision rules are developed by companies to make sure they can make fast decisions in fast-paced environments

Question 19

What is the SE construct?

Answer 19

SE construct is the simultaneous pursuit of opportunity + advantage seeking behavior.

Question 20

Organziational Ambidexterity;

Answer 20

Simultaneous pursuit of exploitative + explorative activities

Question 21

What is the social capital theory?

Answer 21

Organization’s network can influence the recognition of opportunities

Question 22

How can a company achieve profiable growth?

Answer 22

1: find untapped value creation potential en optimize the operating model in the core business. = exploitation
2: expand from a strong core into adjecencies = exploration

Question 23

What are the main pitfalls for sustainable growth?

Answer 23

1: companies tend to overinvest in their core business
2: companies in mature markets over-difersify while aiming for quick growth. Solution; expand into adjecencies from a strong, established core!!

Question 24

Explain effectuate and scale;

Answer 24

The best practices being used across all countries

Question 25

Explain learn and improve

Answer 25

Become better every day, high degree of experimentation

Question 26

Explain differentiate

Answer 26

Continuously attemt to solve unmet needs (new segments for instance)

Question 27

Which four behaviors do transformational leaders exhibit?

Answer 27

1. Idealized influence
2. Inspirational motivation
3. Intellectual stimulation
4. Individual consideraion

Question 28

What are the two main leadership practices?

Answer 28

1. Relaxing metrices
2. Advocating with gatekeepers

Question 29

Explain the relaxing metrices

Answer 29

Delaying standard perfromance targets (short term profit). It enables experimenting with a sustainable product

Question 30

Explain the “advocating with gatekeepers” metrics

Answer 30

Labelling the sustainable product as strategic. Promotig the sustainable product to be part of a sale portfolio