Summary: Week 2

Read the summary and the most important questions on week 2

• 0 main messages +similarities and differences

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• What are the main criticisms of prahalad and hamel on SBU thinking?

  1.imprisoned resources 2.underinvestment in core competencies 3.bounded innovations

• What is the view of prahalad & hamel on corporate strategy?

  They use a manager oriented view of RBV. Top managers should see their firm as a portfolio of competencies rather than a portfolio of SBU's. Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies-->resource bundles(skills and technologies)

• Why does developing core competencies require long term vision?

  Because it takes a long time to develop core competencies. Thats why top management should develop a strategic architecture specifying which core competencies to build.

• What is the role of the strategic center according to Lorenzoni?

  it outsources activities to partners, transfers capabilities to partners, buys technology fro outsiders develops it and shares it with partners and encourages the network as a whole to compete with rival networks

• What are the core competencies of a strategic center?

  1. it has a clear understanding vision 
  2. it has a strong brand name and communciation system
  3. it creates an atmosphere of trust and reciprocity
  4. it helps with partner selection

• Why is a network structure such a key part of strategy according to Lorenzoni?

  1. The center and the partners share and shape each others strategies.
  2. partners specializing in certain activities have acces to peers and share their knowledge
  3. Centers often set up learning races between partners.

• What are the conclusions of Lorenzoni on strategic centers?

  1. Strategic centers see their partners as an integral part of their network
  2. strategic centers and their partners are often very innovative

• What are the similarities between the article of Lorenzoni and Grant?

  1.Lorenzoni & Baden fuller also describe that the strategic network is a system that has the flexibility and freedom of market with long term holistic relationships. (zie laatste alinea article lorenzoni)
  2.It are both hybrid organizations
  3.Both building a network
  4.Use the core competence of each organizations
  5.Knowledge increase 

• What are the differences between the articles of Lorenzoni and Grant?

  1.The strategic network has a strategic center what leads the other firms. By strategic alliances all the firms are the same and share knowledge by alliances. There is not one center what creates a vision, invest in a strong brand name and creates an atmosphere of trust by selecting its partners carefully.
  2.The strategic center is a creator for value, leader and capability builder and structures and strategizes. (zie eerste alinea lorenzoni). That’s not the same with an strategic alliance. By an alliance it is about knowledge accessing. 

• What is the main message of Campbell?

  The focus in corporate strategy should lie with the strength fo the corporate parent arguing that this should fit the needs of the SBU. It offers a structural approach to assess an optimal parent-SBU fit (called the parenting framework).