MGMT3001: Business & Corporate Strategy
Business & Corporate Strategy
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MGMT3001: Business & Corporate Strategy
Lecture 5:
Leadership, Innovation and
Competitive Advantage
Looking back to last week
• Internal resources and its analysis
➢ A firm as a bundle of resources
➢ VRIO: What are your core competencies?
➢ Management of human resources
➢ Value chain analysis and reputation
• Case: Emirates Team New Zealand
➢ Understanding the resources and capabilities of
ETNZ: Tangible, intangible, human – VRIO?
Questions to keep in mind:
➢ Leadership → Types? Role? Impact? Challenges?
➢ Intrapreneurship / Entrepreneurship
➢ Innovation: What can you innovate? + Trials and errors
Case study:
- What is this case about?
- How does this fit into the topic?
Leadership and organisation
• Strategic leadership
- Charismatic role
- Architectural role
• Entrepreneurship & Intrapreneurship
• “Visionary” leadership
How does it connect to innovation?
And competitive advantage?
Challenges in leadership
Great people fail, too…
- Limited information
- Cognitive heuristics
- Inertia and path dependency
- Bad luck
⋮
What do you do when you fail?
How do you look at failures?
Then, now about innovation…
What is innovation (in a business sense)?
“The development of new products, services, processes or
business models”
Business = successful commercialisation
Non-commercial: new practices are developed and adopted
Three areas of innovation
→
Understanding (types of) innovation
Radical
innovation
Architectural
innovation
Disruptive
innovation
Incremental
innovation
M
A
R
K
ET
S N
ew
Ex
is
ti
n
g
TECHNOLOGIES
Existing New
Creative destruction
The replacement of older less efficient processes / products /
services / practices with newer more efficient ones.
Design thinking…
Are large firms better innovators than small firms?
⚫ Large firms
− Greater & more diverse resources
− Can afford to take more risk (does not mean they necessarily take the risk)
− Better able to capitalize on innovation (because of complementary assets)
But …
⚫ Small firms
− More cohesive: knowledge sharing
− More flexible/less bureaucratic: faster & bolder
− Have to innovate to survive
Diffusion of innovation
Case study: Richer Sounds
Question to think about:
Do you think Richer Sounds and “The Richer Way” has what it takes to
remain competitive in the harsh retail industry? Why do you think so?
Take-away for the day
- What role does the leadership play?
o What kind of leaders are there?
o What can be done if leadership fails?
- Understanding innovation:
o How different is each types of innovation?
o Entrepreneurship vs. Intrapreneurship?
o Creative destruction and large vs. small firms – there is no gold
standard
- Design thinking: Aspirational, iterative and critical