Rothaermel Exercise 2 Instructions
Chapter 6 Rothaermel Text
1. What are some drawbacks and risks to a broad generic business strategy? To a focused strategy? (150 Words)
3. In Chapter 4, we discussed the internal value chain activities a firm can perform in its business model (see Exhibit 4.8). The value chain priorities can be quite different for firms taking different business strategies. Create examples of value chains for three firms: one using cost leadership, another using differentiation, and a third using value innovation business-level strategy. (200 Words)
Chapter 7 Rothaermel Text
1. Select an industry and consider how the industry life cycle has affected business strategy for the firms in that industry over time. Detail your answer based on each stage: introduction, growth, shakeout, maturity, and decline. (200 Words)
2. Describe a firm you think has been highly innovative. Which of the four types of innovation—radical, incremental, disruptive, or architectural—did it use? Did the firm use different types over time? (150 Words)
4. Much has been said about competitive advantage gained from innovations such as the Internet, high-technology gadgets, and apps. The chapter points out, however, that low-technology innovations such as the razor—razorblade business model can also create value with incremental innovation. The chapter also noted that Dollar Shave Club (Strategy Highlight 7.1) is merely using a different business model to try to disrupt Gillette. Think of other low-technology innovations that are/were novel, useful, and successfully implemented so that the innovating firm gained a competitive advantage. Find information about the entrepreneurial story behind the innovation. (200 Words)
Chapter 8 Rothaermel Text
1. When Walmart decided to incorporate grocery stores into some locations and created “supercenters,” was this a business-level strategy of differentiation or a corporate strategy of diversification? Why? Explain your answer. (150 Words)
Chapter 9 Rothaermel Text
1. The chapter identifies three governing mechanisms for strategic alliances: non-equity, equity, and joint venture. List the benefits and downsides for each of these mechanisms. (200 Words)
Chapter 10 Rothaermel Text
3. The chapter notes that global strategy can change over time for a firm. MTV is highlighted as one example in Exhibit 10.7. Conduct a web search of a firm you know to be operating internationally and determine its current global strategy position. How long has the firm stayed with this approach? Can you find evidence it had a different global strategy earlier? (200 Words)
Rothaermel, F. T. (2017). Strategic management concepts (Custom 3rd ed.) New York, NY: McGraw-Hill.

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