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BUS 475 Week 1 Practice Strategic Leadership
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BUS 475 Week 1 Practice Strategic Leadership

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Required information Strategic Leadership: Formulating Strategy Across Levels This activity focuses on IBM and how it uses corporate strategy, business strategy, and functional strategy to build competitive advantage. This activity is important because it illustrates how such strategies are created through the strategy process. The goal of this activity is important because it illustrates how such strategies are created through the strategy process. the goal of this activity is to recognize at which levels of strategy key members of IBM act on behalf of the firm, and what questions they must ask to build competitive advantage. Read the short case below and then complete the questions that follow. Minicase The current Chief Executive Officer at IBM is Virginia Rometty who rose to the post in late 2012. Before her tenure, the office was held by Sam Palmisano. The example below comes from actual strategic decisions made at the firm. As the Chief Executive Officer, Mr. Palmisano decided to invest in an Emerging Business Organization (EBO). This was established to help select what new industries IBM should be entering. This group was formed specifically to expand quickly and successfully into new markets for IBM. Bruce Harreld, a senior vice president, was tapped to lead this new business for IBM. One of his main roles was to assess the possible approaches for achieving the desired superior performance levels for the EBO. Mr. Harreld needed to approach business with a variety of points of view to navigate a successful pathway both commercially and internally for IBM. Inside the EBO business unit, Carol Kovac, a life science director, was tapped to build a business in the life sciences area for IBM. She had to address concerns about developing the customer base and implementing successful products and services for particular customers. Over a six-year period, Ms. Kovac built an organization from no revenues and one direct report into an organization with more than $5 billion in revenues and hundreds of PhDs and other support personnel. This example is drawn from O’Reilly, C. A., B. Harreld, and M. Tushman (2009), “Organizational ambidexterity: IBM and emerging business opportunities,” California Management Review 51: 75–99 For each manager, select the appropriate strategy to apply for "Level"; then select the appropriate question to ask for "Question". Sam Palmisano, CEO 1. Level 2. Question Bruce Harreld, Senior Vice President 3. Level 4. Question Carol Kovac, Life Sciences Director 5. Level 6. Question 2 According to the text, superior performance within the strategic business unit (SBU) is sought by asking which major question? 3 Implementing the strategy is often overlooked by senior managers especially in large organizations. What level of manager is often responsible for making sure the strategy gets implemented in alignment with the corporate goals? 4 Required information Internal and External Stakeholders This exercise is important because it reviews the role of stakeholders and their relationship to a firm’s competitive advantage. Different stakeholders play different roles in the firm's quest for competitive advantage. Read the overview below and complete the activities that follow. The textbook discusses the vital role stakeholders can play in the performance and survival of the firm. These stakeholders are often in a complex relationship with the firm. Stakeholders make specific contributions in support of the company and expect certain benefits in return. The characteristics of this exchange relationship are covered in the textbook. The goal of this exercise is to identify the unique contributions of and benefits for different stakeholders. 5. Successful business strategies generate value. Creating value lays the foundation for the important benefits that economies can provide. Superior performance allows the firm to 6. Not all stakeholder groups are created equal. Their differential power can influence how economic value is both created and captured. As noted in the textbook, in the ________ industry, one of the most powerful external stakeholders has historically been unions. 7. Social Responsibilities: Stakeholders and Competitive Advantage This exercise is important because it addresses the need for corporate social responsibility when conducting a stakeholder impact analysis. The goal of this exercise is to recognize how companies can practice different forms of social responsibility. Complete the activities that follow. 8. When Congress passed the Patient Protection and Affordable Care Act (PPACA), it created a (an) _______ responsibility for both individuals and firms of more than 50 people to carry health insurance. 9. Managers must ensure that their firms obey all relevant laws, including labor, consumer, and environmental regulations. This is a firm’s __________ responsibility. 10 Many companies incentivize employees through stock options (ESOPs). This practice allows employees to buy stock at discounted prices or use stock as a retirement investment. This has the effect of

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