Week 8 - Strategic Decline, Crisis & Resilience

Question 1

What type of innovation is there an opportunity for when tech innovation becomes limited in mature industries?

Answer 1

Strategic Innovation
E.g. 
- Business model innovation
- Organisation ambidexterity
- Dynamic capabilities
These may help to explore blue ocean strategies

Question 2

What are the features of declining industries/environments?

Answer 2

Excess capacity
Lack of technological change
Consolidation
Older machines and employees

Question 3

What strategic options are there in declining industries?

Answer 3

• Leadership - gain dominant position, acquire capacity through M+As, encourage exits and dispelling optimism re. industry future
• Niche - find attractive segment to dominate
• Harvest - maximise CF from existing position
• Divest - get out while can and sell up

Question 4

What is Blades’ (2017) view on the certainty of industries/ the business environment?

Answer 4

“World is becoming less predictable, more uncertain and increasingly complex”.
Even tho knowledge is increasing

Question 5

How do Schilling & Jones (2020) define strategic agility?

Answer 5

“Ability of organisations to detect and respond to strategic opportunities and threats fast and easily”.

Question 6

How do Schilling & Jones (2020) define ‘organisational resilience’?

Answer 6

“Capacity of organisations to recover from environmental shocks fast and easily after they have happened”.

Question 7

What are some examples of events that must be resilient?

Answer 7

Especially key in turbulent environments:
Failure of businesses in the supply chain.
Extreme weather events.
Sudden changes in government policy.
E.g. since Global Financial Crisis, international banks are now regulated to increase resilience via use of financial reserves.