Unit 5: 21st-Century Strategy
Research in strategy really picked up steam in the 20th century. However, new research shows that there are other factors that can seriously impact strategies. For example, the use of psychology in business has moved up in the strategic planning world. Managers used to assume that all employees were the same and that all employees would do what they are told. We now know that employees are unique and motivated by different goals themselves. Understanding the culture of a firm and what motivates employees will allow strategy managers to extract more out of each individual.
Additionally, the idea of innovation as a strategy leader has complemented the competitive advantage strategy. There are issues with getting to the top of an industry by innovating and then falling behind to rising competitors. Collectively, these issues are known as the innovator's dilemma, and technology companies have been fighting tooth and nail to avoid falling victim to this problem (as have many other industries). One way to avoid this dilemma is by maintaining a high level of cash and simply acquiring the innovating companies. From 2007 through 2009, Google acquired 24 companies (that were disclosed) and Microsoft acquired 34.
Finally, as globalization makes the world a real global economy, the focus of strategy must go beyond the borders of your own country. Technology has enabled even small companies of just a few people to outsource work to the other side of the world. A global view will be essential to any 21st century strategy.
Completing this unit should take you approximately 8 hours.
Upon successful completion of this unit, you will be able to:
- apply modern strategic management techniques in a globalized environment;
- choose the best alternative strategy under technological uncertainty; and
- synthesize strategy options to maximize competitive advantage.
5.1: Enterprise Culture
As you watch this video, note the influential activity that shaped the history and development of globalization of business. How does each activity affect strategy?
As you watch these videos, note the application of competitive advantage in the global arena. The second video covers the application of competitive advantage in the global environment. Note the discussion of the value chain.
5.1.1: Socialization
Read this article for an introduction to the role of culture in an organization. As you read, think about how an enterprise culture might change the present norms and behaviors in established organizations. What is organizational culture? Why is it important to business strategy formulation and management?
5.1.2: Managerial Theories
Read this article. How does MacGregor's theory X compare to theory Y?
Read this article for an introduction to Ouchi's theory Z. Would you rather work under theory X, Y, or Z? Which strategy would you follow as a manager of a global organization?
5.2: Innovation
Watch this video for an introduction to innovation as a disruption to established corporations. Take notes on some of the innovation examples in the first 30 minutes of the presentation. Which ones have had an important impact on your personal life? Innovation is more than technology!
5.2.1: Sustained Innovation
Read this article. This article assumes you are familiar with agile/lean values from a prior management course. Search these topics to understand this material better. Then, direct your attention to the visual at the end of this resource. Note the division between disruptive and sustainable innovation.
5.2.2: Innovator's Dilemma
Read this article. Do you agree or disagree that Apple is an example of an innovator's dilemma?
5.2.3: Research and Development
Read this article. Technology innovations have been an influence throughout this course, affecting both strategy and strategic planning.
5.3: Global Strategy
Read this introduction to mercantilism. What is its historical significance to international trade patterns?
Read this presentation, which is a review of strategic management topics. Which items were included in this course?
Unit 5 Assessments
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.
- Receive a grade
Use this activity to practice contextualizing the information you've learned in Unit 5. Once you submit your answer, evaluate it using the provided guide to responding.
