1. 1-1 Management of Technology PROFITING FROM TECHNOLOGICAL INNOVATION

2. 1-2 Management of Technology (FIRST SOME DEFINITIONS LEFT OVER FROM LAST WEEK)

3. 1-3 Management of Technology ABILENE PARADOX When someone suggests that the group engage in a particular activity or course of action, and no one in the group really wants to do the activity (including the person that made the suggestion). Only after that activity, or course of action is completed, does anyone voice an opinion (usually negative).

4. 1-4 Management of Technology TIPS FOR BEING ASSERTIVE Take responsibility for what you say Bad: Maybe that widget doesn’t have all of the bells and whistles we’re looking for. Good: I think that widget looks fine, but we agreed only to consider widgets with a payback of less than five years’. I think we should keep looking.

5. 1-5 Management of Technology TIPS FOR BEING ASSERTIVE Speak up for what you need – Do not apologize too much (“I just hate to ask you, and I normally wouldn’t need to, but...”) – Be direct – Do not play on someone’s friendship – Do not take a refusal personally

6. 1-6 Management of Technology TIPS FOR BEING ASSERTIVE Learn to Say No – Keep your reply short and polite – Do not invent excuses – Do not go overboard in apologizing because you cannot do it – Be up-front with your limitations and about options you could support – Ask for time to consider it if you need to.

7. 1-7 Management of Technology GROUP THINK The tendency of a decision-making group to strive for consensus and to avoid critical examination of alternatives.

8. 1-8 Management of Technology SYMPTOMS of GROUP THINK An illusion of invulnerability Unquestioned assumption of the group’s morality Collective Rationalization Stereotypes of the Opposition Self-censorship Illusion of Unanimity Direct Pressure on Dissenting Members Mindguards

9. 1-9 Management of Technology HORTIZONTAL INTEGRTATION Act of acquiring the operations of one or more firms at the same level in a marketing channel to strengthen one’s own position at that level in the channel. Ex: Hospitality Franchise System buying Super 8 Concern: tough to coordinate

10. 1-10 Management of Technology VERTICAL INTEGRATION Act of combining two or more levels of a marketing channel under one participant’s control. Forward Integration: closer to the final consumer Backward Integration: farther from the final consumer Ex: CCE buying several independent bottlers

11. 1-11 Management of Technology COLLABORATION To cooperate with another (corporation), often a competitor. This is quite often called a multifaceted relationship. More common in hi-tech industries than others. Often the competitor is the supplier, customer, and/or partner.

12. 1-12 Management of Technology MERGER Transaction in which two firms agree to integrate their operations on a relatively co-equal basis because they have resources and capabilities that together may create a stronger competitive advantage

13. 1-13 Management of Technology LEGAL CONCERNS RELATIVE TO MERGERS Clayton Act (1914) Celler-Kefauver Act (1950) Allows the FTC to block if the effect...“may be to substantially lessen competition or tend to create a monopoly.” Acts are limited to firms engaged in interstate commerce But then, who isn’t??!

14. 1-14 Management of Technology LICENSING Allows a firm to purchase the right to manufacture and sell the firm’s products within a host country or set of countries. Licenser is normally paid a royalty on each unit produced and sold Licensee takes the risks and makes the monetary investments on facilities manufacturing etc.

15. 1-15 Management of Technology COMPETITIVE RISKS Inadequate contracts Misrepresentation of competencies Partners fail to use their complementary resources Holding alliance partner’s specific investments hostage

16. 1-16 Management of Technology RISK and ASSET MANAGEMENT APPROACHES Detailed contracts and monitoring Developing trusting relationships

17. 1-17 Management of Technology ACQUISITION Transaction in which one firm buys controlling or 100 percent interest in another firm with the intent of more effectively using a core competence by making the acquired firm a subsidiary business within its portfolio.

18. 1-18 Management of Technology TAKEOVER Acquisition in which the target firm did not solicit the bid of the acquiring firm.

19. 1-19 Management of Technology DESIRED OUTCOME Creating value