Discussion Questions October 16&18, 2012 POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: Dept. of Industrial & Management Engineering POSTECH

2 Discussion Questions ■Chapter 6. Defining the Organization’s Strategic Direction 1.What is the difference between a strength, a competitive advantage, and a sustainable competitive advantage? –Strength: Resources or capabilities a firm has –Competitive advantage: Ability to outperform a competitor * If two competitors share the same strength, then that strength does not afford either firm a competitive advantage –Sustainable competitive advantage: Competitive advantage enables a firm to outperform its competitors for an extended period of time because the advantage is not imitable and has no ready substitutes that competitors can adopt

3 Discussion Questions ■Chapter 6. Defining the Organization’s Strategic Direction 2.Pick a company you are familiar with. Can you identify some of its Core Competencies? In addition, how can the company avoid falling into “Core Rigidities”? –Microsoft Core competency: Operating system with high compatibility, Windows Core rigidity: For the high compatibility of Windows, MS makes windows too heavy to make it possible to use old software in the new version of Windows

4 Discussion Questions ■Chapter 6. Defining the Organization’s Strategic Direction 3.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)? –SWOT: Model to identify current situation of a company –Strategic intent: Goal a company intends to achieve in the future ( years)  With SWOT analysis, a company can set their strategic intent