SMKO SUMMARY QUIZ

I. Case Materials
1. How has Grab achieved growth spurts through strategic pivoting? What
factors are essential for successful pivoting?
a. Grab initially pivoted from a B2B model to a B2C model by launching
a consumer app in response to competitive threats
b. Grab has achieved growth spurts by recognizing market trends and
adapting its business model accordingly
c. Factors essential for successful strategic pivoting include being
customer-centric, continuously innovating services, partnering with
local businesses for expansion, and being brave in making strategic
decisions
2. Can Grab pivot successfully as it grows in size?
a. Grab has the potential to pivot successfully as it grows in size by
maintaining customer-centricity, continuous innovation, and effective
expansion strategies
b. There is a potential for Grab to pivot successfully as it helps Grab to
expand the markets but Grab should implement specific strategies that
allows them to maintain their positions
c. Challenges will arise as the company grows and Grab’s success in
future pivots will depend on its ability to tackle those challenges and
stay ahead of the competition
3. How beneficial and lasting is a first-mover advantage? Is Grab well-placed for
its market leadership to endure? Discuss with reference to Grab’s win over
TaxiMonger, Easy Taxi and Uber.
a. Grab’s first-mover advantage in the ride-hailing industry has been
beneficial and lasting as it successfully competed with TaxiMonger,
Easy Taxi, and Uber by switching its service offering and catering to
local markets’ needs
b. Grab has maintained its market leadership position by establishing a
strong brand presence, leveraging network effects, investing in
technological innovation, and adapting to local markets
c. Grab’s market leadership and endurance were attributed to factors:
 i. early entry
ii. rapid expansion
iii. adaptability
iv. innovation
v. strategic partnerships
d. In maintaining and staying ahead of potential competition, Grab
provide a continuous innovation, implement localization efforts,
diversification, and strategic partnerships
4. What competitive measures did Grab pursue against Uber to defend its
position? How can it bolster its competitive edge against potential
competition?
a. Competitive Measures against Uber
i. Focused on developing GrabCar
ii. Pursued continuous improvement of services, expanding its
offerings to include food delivery and payment solutions, and
forming strategic partnerships with local businesses
iii. Acquiring Uber’s Southeast Asian operations and taking a stake
in Grab
b. Bolstering Competitive Edge
i. Enhancing its technological capabilities
ii. Expanding into new markets and forming strategic partnerships
iii. Offering unique and differentiated services
iv. Maintaining a strong customer-centric approach
5. How does Grab use innovation as an enabler of long-term growth?
a. Innovation as an enabler of long-term growth by investing research and
development, recruited talented individuals, and exploring market
opportunities to drive innovation
b. Grab aims to enhance customer satisfaction and expand its market
reach by:
i. Introducing new features
ii. Exploring additional services
iii. Investing in research and development
 6. Evaluate the relevance of Grab’s approach to measure performance by
combining culture and performance. How does Grab’s culture contribute to its
business growth through innovation?
a. Grab combines culture and performance in measuring its performance
by ensuring that core values and innovative mindset are maintained
b. The combination of culture and performance is focusing on principles
like out-serving customers, disruption, and intellectual rigor
c. Characteristics of Grab’s culture
i. Think creatively
ii. Take risks
iii. Continuously improve services based on customer feedback
d. Grab is able to drive long-term growth and maintain its competitive
position by fostering a culture that encourages and rewards innovation
II. Theory
● Diagnostic Control Systems
○ Diagnostic control systems are used to monitor organizational
outcomes and correct deviations from preset standards of performance.
It is usually used in stable environments where there is a small
possibility of uncertainties.
○ Diagnostic control systems help company in setting goals in advance,
measuring outputs, calculating performance variances, and using
variance information to bring performance back in line with the goals
○ Risk that might be faced in implementing the diagnostic control
systems are measuring the wrong variables, business slack into targets,
and gaming the system
○ Examples: profit plans, balanced scorecards, and budgeting systems
● Interactive Control Systems
○ Interactive control systems are used to adapt and change in response to
new information and changing circumstances. The implementation of
interactive control systems focus on facilitating communication,
collaboration, and learning. Interactive control systems are often used
in dynamic environments where there is a lot of uncertainty.
 ○ The interactive control systems help senior managers spark
information searches throughout the organization and create a focus on
strategic uncertainties
○ How Internal Control Systems Works
i. Operates through a continuous feedback loop between
managers and employees by promoting dialogue and discussion
rather than just top-down directives
ii. Provide employees with the flexibility to make decisions within
defined boundaries or guidelines and managers can play a
facilitative role to employees in providing guidance, support,
and resources to enable them in achieving desired outcomes
iii. Fostering a culture of collaboration, learning, and continuous
improvement
○ Examples:
i. Management by walking around (MBWA)
ii. Regular meetings and discussions
iii. Performance reviews
iv. Employee suggestion schemes
● Benefits of Diagnostic and Interactive Control Systems
○ Diagnostic control systems provide a clear framework for evaluating
performance and identifying areas for improvement by ensuring the
individuals and teams are held accountable for their performance and
meet the organizational goals
○ Interactive control systems promote effective coordination and
collaboration among different departments and teams by enabling
timely decision-making, enhancing communication, and fostering a
culture of continuous learning and adaptation
○ The combination of these two systems will help company in
contributing to effective performance management, aligning with
strategic objectives, and organizational agility
● Integration of Diagnostic and Interactive Control Systems
○ The utilization of both diagnostic and interactive control systems will
help company in achieving a balanced approach to performance
management
 i. Diagnostic control system provides the structure and
benchmarks for measuring performance
ii. Interactive control system provides ongoing communication,
collaboration, and adaptation
○ Company could monitor performance, identify opportunities for
improvement and respond effectively to changes in the business
environment with the integration of these two systems
○ The combination of these two systems help the company in achieving a
dynamic responsive approach to managing performance and driving
success
● Summary

Features Diagnostic Control System Interactive Control System

Focus Monitoring and evaluation Adaptation and change

Orientation Past performance Present and future

Purpose Identify and correct Facilitate communication,

deviations collaboration, and learning

Environment Stable Dynamic