Chapter 6 Discussion Questions

Transcription

1 Chapter 6 Discussion Questions 1. What is the difference between a strength, a competitive advantage, and a sustainable competitive advantage? 2. What makes an ability (or set of abilities) a core competency? 3. Why is it necessary to perform an external and internal analysis before the firm can identify its true core competencies? 4. Pick a company you are familiar with. Can you identify some of its core competencies? 5. How is the idea of strategic intent different from models of strategy that emphasize achieving a fit between the firm s strategies and its current strengths, weaknesses, opportunities and threats (SWOT)? 1

2 Chapter 7 Discussion Questions 1. What are the advantages and disadvantages of discounted cash flow methods such as NPV and IRR? 2. What are some of the reasons that a firm might use both qualitative and quantitative assessments of a project? 3. Will different methods of evaluating a project typically yield the same conclusions about whether to fund its development? Why or why not? 2

3 Chapter 8 COLLABORATION STRATEGIES

4 Case Study: The XenoMouse Abgenix spent seven years and $40 million to produce a genetically-engineered mouse that could produce antibodies that would treat human illnesses. One antibody, ABX-EGF showed great promise for treating several types of cancer. Abgenix had to decide whether to: License ABX-EGF to a pharmaceutical company which would do all further testing and commercialization (bear little risk and receive license royalties) Use a joint venture with a biotechnology company to complete the testing and commercialization (bear moderate risk and split profits) Pursue the ABX-EGF project as a solo venture (bear all risks and keep all profits) 4

5 Case Study: The XenoMouse Discussion Questions: 1. What are the pros and cons of Abgenix collaborating with a partner on ABX-EGF? 2. If Abgenix chooses collaboration, would it be better off licensing ABX-EGF to the pharmaceutical company, or forming a joint venture with the biotech company? 3. How does Abgenix s decision about collaborating for ABX-EGF impact its prospects for its other drug development projects? 5

6 Chapter 8 Discussion Questions 1. What are some of the advantages and disadvantages of collaborating on a development project? 2. How does the mode of collaborating (e.g., strategic alliance, joint venture, licensing, outsourcing, collective research organization) influence the success of a collaboration? 3. Identify an example of collaboration between two or more organizations. What were the advantages and disadvantages of collaboration versus solo development? What collaboration mode did the partners choose? What were the advantages and disadvantages of the collaboration mode? 6

7 Chapter 9 PROTECTING INNOVATION

8 The Digital Music Distribution Revolution In 1991, Fraunhofer IIS of Germany invents the MP3 format; by late 1990 s the format is wildly popular. In 1999, Shawn Fanning releases Napster, a free software program that allows users to easily share MP3 files ( peer-to-peer ) The RIAA starts to worry about illegal trade of copyrighted music. In 2001 it gets a court ruling against Napster, taking it offline. However, new peer-to-peer music services began to sprout up to meet the demand of the large population of music pirates. In 2003, Apple opens its itunes Music Store a one-stop-shop for music files from the five major record labels. Now record industry is earning significant revenues from MP3s. In 2006, France pushes Apple to loosen its restrictions on itunes music and ipods. Should Apple use a more open model? Meanwhile, new models of digital distribution were emerging: Creative Commons (license agreements to make files public, legal, and free), and Podcasting (whereby whole shows could be downloaded). 8

9 The Digital Music Distribution Revolution Discussion Questions: 1. What industry conditions lead to the revolution in audio distribution? Which stakeholders stand to benefit most (or least) from this revolution? 2. Why did the music stores created by the record labels fail to attract many subscribers? What, if anything, should the record labels have done differently? 3. What will determine how long the success of the ipod and itunes endures? Should Apple allow its ipods to play non-itunes songs? Should Apple allow itunes songs to play on non-ipod MP3 players? 4. Why would musicians sign away their copyright privileges to their songs through Creative Commons? 5. How is podcasting likely to impact the appropriability of recorded music, radio broadcasting, or other types of audio transmissions? 9

10 Chapter 9 Discussion Questions 1. What are the differences between patents, copyrights, and trademarks? 2. Consider a firm that is considering marketing its innovation in multiple countries. What factors should this firm consider in formulating its protection strategy? 3. When will trade secrets be more useful than patents, copyrights or trademarks? 4. What factors do you believe influenced the choice of protection strategy used for the innovation identified above? Do you think the strategy was a good choice? 10

11 Chapter 10 ORGANIZING FOR INNOVATION

12 Chapter 10 Discussion Questions 1. Are there particular types of innovation activities for which large firms are likely to outperform small firms? Are there types for which small firms are likely to outperform large firms? 2. What are some of the advantages and disadvantages of having formalized procedures for improving the effectiveness or efficiency of innovation? 3. What factors should a firm take into account when deciding how centralized its R&D activities should be? Should firms employ both centralized and decentralized R&D activities? 4. Why is the tension between centralization and decentralization of R&D activities likely to be even greater for multinational firms than firms that compete in one national market? 5. What are some of the advantages and disadvantages of the transnational approach advocated by Bartlett and Ghoshal? 12

13 Chapter 11 MANAGING THE NEW PRODUCT DEVELOPMENT PROCESS

14 Chapter 11 Discussion Questions 1. Are there particular types of innovation activities for which large firms are likely to outperform small firms? Are there types for which small firms are likely to outperform large firms? 2. What are some of the advantages and disadvantages of having formalized procedures for improving the effectiveness or efficiency of innovation? 3. What factors should a firm take into account when deciding how centralized its R&D activities should be? Should firms employ both centralized and decentralized R&D activities? 4. Why is the tension between centralization and decentralization of R&D activities likely to be even greater for multinational firms than firms that compete in one national market? 14

15 Chapter 12 MANAGING NEW PRODUCT DEVELOPMENT TEAMS

16 New Product Development at Dell Computer In 1993 Dell began developing a new notebook computer. Its first line of notebook computers (introduced in 1992)had technical problems that resulted in recalling 17,000 units. Dell had traditionally used a small R&D budget, autonomous teams consisting mostly of developers, and an informal process. It was often successful, but outcomes were inconsistent. For the new notebook, Dell decided to use cross-functional teams with project leaders. Teams would be dedicated to project from start to finish. Teams would direct (and be held accountable for) each phase. 16

17 New Product Development at Dell Computer Discussion Questions: 1. What are some of the advantages of Dell's adoption of a more structured new product development process? Are their risks of abandoning its previous informal approach? 2. How does including engineers from different functions impact Dell's development process? 3. What are the benefits and costs of keeping the same team members on the development project for its complete duration? 4. If you were a senior manager at Dell, are their any recommendations you would make for further improving the development process? 17

18 Chapter 12 Discussion Questions 1. Why are the tradeoffs in choosing a team's size and level of diversity? 2. Can you identify an example of a development project, and what type of team you believed they used? Do you think this was the appropriate type of team given the nature of the project? 3. Are there some types of projects for which virtual teams are inappropriate? 18