ASSIGNMENT #7

1.Explain the role played by core competencies in a firm’s strategic planning.

Companies must orient their strategies to tap into the core competencies and the core competency is
the fundamental basis for the value added by the firm. The important aspect to be noted is that core
competencies provide the companies with a framework wherein they can identify their core strengths
and strategize accordingly. Of course, the identification and evaluation of core competencies must be
done as accurately and reliably as possible since the divestment of non-core areas must not lead to the
firm missing key areas of operation and competitive advantage. Finally, care must be taken when
building the organizational edifice around the core competencies to avoid the situation where many or
too few of the competencies are identified leading to redundancies or scarcity.

2.What is meant by the technology escalator in the concept of technology trajectories?

It underlines the likelihood of innovation waves associated with the identification of new dominant
designs. It is distinguished by changing technological levels, changing business dynamics and change
social demands.

3.Explain why a business’s heritage needs to be considered in planning future stindustr

Heritage is something that belongs to one by birth, hence when planning a future strategy, the
corporate heritage needs to be addressed, since those are the origins where the business came to life. In
order to see what has succeeded in the past, and what has not, I will consider the legacy of industry.

4.Try to plot two firms in each of the quadrants on the profit–competency matrix (Figure 7.4).

It is very intriguing to find that late entrants have their own strategies to win in the innovation race.
Strategic planning involves improving operational efficiency and scouting for opportunities to build new
markets and grow domestic markets.

It is a known fact that an organization that is first to hit the market with an innovative product or service
has a better advantage over late entrants. However, later entrants can succeed in the innovation race.

The fact is that late entrants can be agile when it comes to adapting to the innovations pioneered by the
first movers. If late entrants have a good R&D capability then they can design new features. Late
entrants have to be agile in manufacturing, design and development and marketing to respond quickly
to first movers. Having a dedicated R&D center helps because then it becomes easy to assimilate new
knowledge and absorb it as soon as possible.

5.Explain the difference between individual knowledge and organizational knowledge and show how an
organization’s knowledge can be greater than the sum of individual knowledge bases.

Organizational knowledge represents internal systems, routines, shared understanding and practices.
There are several tangible representations of this knowledge, such as minutes of meetings, research
notebooks, data banks of customers, operating procedures, manufacturing quality control measures, as
well as less tangible representations, such as tried and tested ways of operating. It is evident that the
knowledge base of an organization will be greater, in most cases, than the sum total of the individual
knowledge bases within it. A popular illustration and example of this phenomenon is teamwork. In
football leagues around the world, frequently a team will perform beyond what the individual talents of
the players would suggest. It is important to recognize that the knowledge base of an organization is
not simply the sum of individuals’ knowledge bases. If this were the case, and knowledge was only held
at the individual level, then an organization’s expertise and acquired abilities would change simply by
employee turnover. The wealth of experience built up by an organization through its operations clearly
is not lost when employees leave. The employment of new workers and the retirement of old workers
does not equate to changing the skills of a firm.

6.How would you compare the knowledge bases of two organizations?

Knowledge work considers knowledge from the perspective of the company or organization. A central
role plays business process modeling to make procedural knowledge of the organization explicit.
Business processes consider the organizational activities in a top-down view. Workflows can be defined
as supporting the operative execution of a business process in parts or total. It aims to improve the use
of resources by an explicit analysis and planning of organizational activities. The problem of representing
and integrating organizational knowledge work and individual knowledge work is a major one. It is a
challenge to provide a model for representing and integration knowledge work with workflows.
Workflow models need to be adapted to allow for more flexible behavior of the workflows. This implies
that all running Workflow instances need to adapted accordingly. Individual knowledge work typically
comprises activities that are difficult to plan due to their high variability. A huge amount of input
information and often changing communication partners require frequent revisions of one’s procedures.
Without some explicitly captured procedural knowledge, it is the responsibility of the knowledge worker
to find a solution for a problem or task.

7. How can late entrants win the innovation race?

Individual knowledge work typically comprises activities that are difficult to plan due to their high
variability. A huge amount of input information and often changing communication partners require
frequent revisions of one’s procedures. Without some explicitly captured proceStrategic planning
involves improving operational efficiency and scouting for opportunities. An organization that is first to
hit the market with an innovative product or service has a better advantage over late entrants. Late
entrants have to be agile in manufacturing, design and development and marketing to respond quickly
to first movers. Having a dedicated R&D center helps because then it becomes easy to assimilate new
knowledge and absorb it as soon as possible. The fact is that late entrants can be agile when it comes to
adapting to the innovations pioneered by the firstmovers. If late entrants have a good R&d capability
then they can design new features.dural knowledge, it is the responsibility of the knowledge worker to
find a solution for a problem or task.