MGMT10002 Study Guide - Final Guide: Academic Freedom, Strategic Planning, Cost Leadership
5 May 2018
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SAMPLE WRITTEN RESPONSES OUTLINE TO PRACTISE QUESTIONS: EXAM PREP
Question 1: Why is exploration an integral part of what organisations must be able to do well? Define
the concept and give an example of an organisation pursuing exploration. Describe what its
exploration approach consists of and what benefits the organisation might derive from it.
Exploration is the idea that a company allows radical innovation to differentiate themselves, and is
open to experimentation of new ideas. Exploration is the key to future viability of an organisation as it
enables innovation and creativity which allows organisations to be market leaders and stay one step
ahead of the competition.
Exploration is reinforced by an adaptability/innovation culture, it is the manager's role to enforce this
organisational culture if the organisational goals are centred around exploration. Exploration is
especially important in the rapidly changing market most firms are faced with as we expand towards a
global market. This means as trends come and go, organisations must come up with new
products/services to engage the consumer with otherwise they will fail to make revenue and contain
market share. Exploration creates agile organisations, one which can adapt to change thus ensuring its
long-term success.
Google is a company which engages in exploration to gain creativity and innovation. The managers at
google act to facilitate this creativity by letting employees spend 20 percent of their time working on
any project they choose, even if the project doesn’t tie with the company’s central missions, this
motivates the employees as they are working on what they want thus, facilitating an environment that
enables innovation. Google managers hold open office hours to toss around ideas which instil a sense
of creative freedom in employees so they are more likely to come up with new and innovative ideas.
By creating such an environment that facilitates innovation the company can move forward and
always come up with new and creative ways to problem solve and innovate.
Human Resource department which has the job of recruitment and allocation of jobs also enable this
process by ensuring the employees selected are of the creative variety by asking them questions such
as ‘If you could change the world using Google resources, what would u do?’. Choosing the right
creative employees and increasing diversity is one way to enforce an innovative culture.
Google follows Its commitment to being creative with its innovative statement that says it allows its
employees scientific freedom.
Google also takes a slightly ambidextrous approach by having segregated research facilities that test
and explore new ideas such as driverless cars, robotics etc. Such facilities allow creative collaboration
between creative employees without cross contamination from external forces. These facilities
(exploration) are where the new technology and ideas come from, prior to being implemented and
exploited, allowing the company to maintain its place in the market and act as a market frontier in the
technology world.
QUESTION 2: Define strategic planning and take a position on whether strategic planning can have a
positive versus negative impact on the fate of an organisation. In your answer, consider the influence
of environmental uncertainty.
Strategic Planning incorporates the strategic thinking of upper level organisational management and
organisational mission to establish a common, long term goal the organisation and its employees can
work towards. Specifically, with an intended outcome that increases the organisation’s competitive
advantage.
Strategic planning creates a competitive advantage based on; exploiting core customers, targeting
different customers’ segments, creative value and achieving synergy. This is done by: differentiating
the product/ service, focusing on different segments and cost leadership
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