Deck 7: Section 4: Strategy: How Do Businesses Generate a Successful Strategy

Question 1

Explain and provide examples of how technology has changed in the workplace since 1980.

Answer 1

-First IBM computer invented in 1981, replaces typewriters; office workers now use computers
-Internet (world wide web), invented in 1991, allows company web sites (ie. intranets); allows people to work at home via a network
-Google, invented in 1998, allows an easy search engine to research business, market and other information
-Blackberry, the first smartphone , invented in 1999, allows employees to send emails from their phones, communicating and answering questions on the go
-Facebook, created in 2004, allows employers to search potential hires before interviewing them or offering a contract

Question 2

Toyota introduced a family minivan, called the Sienna, with 8 seats and sliding seats to allow the ease of entry for families with 2 or more child car seats. Explain what type of innovation would this be classified as?

Answer 2

Incremental innovation
-Making relatively minor improvements or modifications to an existing product or practice in the hopes of differentiating it from the competition.

Question 3

Greek yogurt is a new, healthy product. What stage of the lifecycle industry would this product fall under? Explain what characteristics this industry would have?

Answer 3

Mature stage
-Yogurt is a food product that has been around for a very, long time.
-market growth is moderate
-consumers are price conscious
-intense competition
-companies focus on production, manufacturing and cost efficiencies
-incremental innovation - Greek yogurt is just another new type of yogurt, with some slightly different health benefits
-many companies will take a cost leadership strategy, since most products just have small improvements

Question 4

Amazon has recently introduced robotic, flying delivery drones and would like to use them to deliver products directly to consumers, eliminating the need for postal or courier delivery services. Describe the typical 4 stages in the evolution of a new technology.