StrategyConsulting_Flashcards_Corrected

Question 1

What are the key components of a well-defined strategy according to Collis, D. J., & Rukstad, M. G. (2008). Can you say what your strategy is?

Answer 1

Objective, Scope, Advantage

Question 2

According to Hambrick, D. C., & Fredrickson, J. W. (2005). Are you sure you have a strategy?, what are the 6 essential considerations in assessing the viability/quality of a strategy?

Answer 2

Environmental fit, resource exploitation, sustainability of differentiators, internal consistency, resource availability, implementability

Question 3

What does Martin, R. L. (2010). The execution trap. Drawing a line between strategy and execution almost guarantees failure. argue about the relationship between strategy and execution?

Answer 3

Drawing a line between strategy and execution almost guarantees failure. A better approach treats execution as integral to strategy. Choices cascade from its source in the mountains (the corporation) to its mouth (the rest of the organization).

Question 4

How does the MECE principle enhance problem-solving?

Answer 4

MECE, meaning Mutually Exclusive and Collectively Exhaustive, helps in structuring information to avoid overlaps and ensure all possibilities are considered.

Question 5

What is the role of a hypothesis in business experiments?

Answer 5

A hypothesis is an educated guess about the expected outcome which guides the design and analysis of the experiment.

Question 6

Hambrick and Fredrickson (Are you sure you have a strategy, 2001) discuss five different strategy elements in their Strategy Diamond model. Mention and explain each of these elements.

Answer 6

1.Arenas: Where will we be active?
2.Vehicles: How will we get there?
3. Staging: What will be our speed and sequence of moves?
4. Differentiators: How will we win?
5. Economic Logic: How will we obtain our returns?

Question 7

Bingham, C. B., Eisenhardt, K. M., & Furr, N. R. (2011). Which strategy when?. This paper discusses 3 types of strategy. Mention all of them and explain for which circumstances are they best for.

Answer 7

1. Position Strategy: Best for Stable environments
2. Leverage Strategy: Best for Moderately dynamic environments
3. Opportunity Strategy: Best for Dynamic environments

Question 8

Jarzabkowski, P., & Whittington, R. (2008). A strategy-as-practice approach to strategy research and education. Explain the concept of strategy-as-practice as described in this paper.

Answer 8

Strategy-as-practice approach rejects the separation of theory and practice via sociological lenses.

Question 9

What are the 5 types of logic trees and when should they be used?

Answer 9

1. Abductive Logic Tree: Assumption (limited understanding)
2. Inductive Logic Tree: Data (some knowledge)
3. Deductive Logic Tree: Hypothesis (Developed understanding)
4. Hypothesis Tree: Sufficient Understanding to formulate Hypo
5. Decision Tree: If/Then Sufficient understanding of the problem structure

Question 10

What are the 5 stages for a successful implementation as described by Kaplan & Norton, 2008. Mastering the Management System. and what do they entail?

Answer 10

1. Develop strategy: mission, Vision, Value Statement, SWOT
2. Translate the strategy: Managers translate into objectives
3. Plan operations: Prepare the resources
4. Monitor and learn: Review the data
5. Test and adapt strat: If assumptions appear faulty, update the strategy.

Question 11

What does this paper entail Lafley, A. G., Martin, R. L., Rivkin, J. W., & Siggelkow, N. (2012). Bringing science to the art of strategy. ?

Answer 11

Conventional strategic planning should shift from focusing on issues to exploring and testing possible solutions.

Question 12

What are the 3 elements of an Introduction as described by Williams, M.J. (1997). How to Write a Memo or Report. Harvard Business Review. ?

Answer 12

1. Situation: Established truth
2. Complication: What happened?
3. Question: Triggered by the complication.

Question 13

What are Porter’s five forces?

Answer 13

1. Industry Rivalry
2. Threat of new entrants
3. Threat of substitutes
4. Bargaining power of suppliers
5. Bargaining power of buyers

Question 14

In their cycle of knowledge production and consumption Suddaby & Greenwood describe a process of due diligence and innovation, legitimation, commodification, and colonization. Please describe each phase with its lead actor and why business schools are a key player in this cycle of knowledge management production

Answer 14

1. Due diligence and Innovation - Business Schools : education and Research
2. Legitimation - Gurus: Legitimate and spread it.
3. Commodification - Consultants: Make it a product by abstraction
4. Colonization - Large PSF: Migrate knowledge into new territories.

Question 15

What are the 4 types of consultancy?

Answer 15

1. Brain Consultancy: Novel ideas. New Knowledge.
2. Grey hair Consultancy: Experience. exploit knowledge.
3. Procedure-based Consultancy: Efficiency. Exploit knowledge.
4. Software-based consultancy: Analytics-based software for decision making. Exploit Knowledge.

Question 16

What are the three elements of an Introduction as described here Williams, M.J. (1997). How to Write a Memo or Report. ?

Answer 16

1. Situation: Established truth about the situation
2. Complication: What happened next
3. Question: Triggered by complication

Question 17

What are the eight ‘S’ as described here Higgins, J. M. (2005). The eight ‘S’s of successful strategy execution. ?

Answer 17

Its a cross-functional way of thinking and executing a strategy:
1. Strategy and purpose
2. Structure
3. Systems and processes
4. Style
5. Staff
6. reSources
7. Shared values
8. Strategic performance
Misalignment can lead to failure.

Question 18

What is the cycle of knowledge management production and explain the two implications of Commodification according to Suddaby, R., & Greenwood, R. (2001). Colonizing knowledge: Commodification as a dynamic of jurisdictional expansion in professional service firms.?

Answer 18

1) As the service becomes more standardized, it may lose some of its effectiveness or specificity. The service might not be as finely tailored to individual client’s needs, potentially reducing technical value.

2) As management knowledge turns into a tradeable product, firms may overlook the detailed processes behind its creation and use, which could hinder innovation and the quality of customized consulting services.

Question 19

What are the 4 main elements as described by Maister, D. H. (1982). Balancing the professional service firm. and what do they entail?

Answer 19

1. Market for Professional force
2. Market for Firm’s Services
3. Firm’s Organizational Structure
4. Firm’s Economic Structure

Question 20

Explain the four generative elements identified by Anand et al., (2007) in their article “Knowledge-based innovation: Emergence and embedding of new practice areas in management consulting firms.”.

Answer 20

1. Socialized Agency: This aligns individual career goals with the firm’s growth. Consultants are encouraged to build their brands, carve out niches, and push to develop new practice areas that align with the firm’s strategies.
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2. Differentiated Expertise: Consultants need to develop unique knowledge that distinguishes them from others in the field. This involves creating and applying new ideas that cater specifically to client needs and help the firm enter new markets or service areas.
   .
3. Defensible Turf: This element focuses on securing and expanding the firm’s market position by innovating practices that meet client demands in ways competitors cannot easily replicate. This includes convincing others within the firm of the value of new practices and securing their support.
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4. Organizational Support: The final element involves the firm providing necessary resources, training, and support to nurture and grow new practice areas. This support helps embed these innovations into the firm’s overall structure and operations.

Question 21

What are the 5 phases of the Empirical circle?

Answer 21

1. Abduction
2. Induction
3. Deduction
4. Testing
5. Evaluation

Question 22

What does this paper argue: Gottfredson, Schaubert & Saenz, 2008. The new leader’s guide to diagnosing the business. ?

Answer 22

Comprehensive Diagnosis for Strategic Objectives: The paper emphasizes that setting strategic objectives based on a comprehensive diagnosis, such as expanding into profitable segments and increasing market share, is crucial for organizational alignment and success

Question 23

What is the complete strategy landscape as described here: Collis, D. J. (2021). Why do so many strategies fail. ?

Answer 23

1. Opportunity Set
2. Value-Creation Potential
3. Value Capture
4. Value Realization
5. Outcome

Question 24

Explain what is a business experiment as outlined here: Bland, D. J., & Osterwalder, A. (2019). Testing business ideas: A field guide for rapid experimentation.

Answer 24

Business experiments:

Business experiments are systematic and controlled tests conducted by organizations to gather data, assess hypotheses, and make informed decisions. They involve deliberately changing variables or strategies to observe their impact on business outcomes.

Business experiments serve several crucial purposes:

1. Decision Validation: They help validate or invalidate assumptions, strategies, or business decisions before widespread implementation, reducing the risk of costly mistakes.
2. Optimization: Experiments can optimize processes, products, or services by identifying the most effective approaches.
3. Innovation: They foster innovation by encouraging the exploration of new ideas and concepts.
4. Data-Driven Decisions: Experiments enable organizations to make data-driven decisions, enhancing overall business intelligence.

Elements of Business Experiments:

1. Hypothesis: Each experiment begins with a clear hypothesis or educated guess about the expected outcome.
2. Controlled Variables: Specific variables are deliberately manipulated while keeping others constant to isolate the impact of changes.
3. Data Collection: Precise data collection methods are employed to measure the effects of the experiment.
4. Analysis: Collected data is analyzed to draw conclusions and insights.
5. Iterative: Experiments often involve multiple iterations to refine strategies or solutions continually

Question 25

What is Management consulting?

Answer 25

Provide to managers of client organisations and consists of objective advice on management’s decisions regarding the solutions to the client organisation’s problems and opportunities.

Question 26

Consultancy value chain and disaggregation.

Answer 26

Consultancy value chain: The ultimate competitive advantage depends on the people.

Disaggregation: This firm has a competitive advantage in reputation and network. Outsources non-critical activities.

Question 27

Describe the notions of “levers” and “rocks” when it comes to balancing the consulting firm. Illustrate each with two examples. Explain the relationship of these notions to competition on the consulting market.

Answer 27

Balancing the consulting firm .You can’t control all of it
Levers: Firm growth, Project mix
Rocks: Billing rates, Compensation rates, Promotion policy

Question 28

Collis and Ruckstad emphasize the importance of finding “The Strategic Sweet Spot” of organizations. Explain.

Answer 28

Finding a sweet spot that aligns the firm’s capabilities with the customer needs in a way that competitors cannot match given the changing external context.