1. 1 Corporate-level: A plan to use and develop core competencies so that the organization can not only protect and enlarge its existing domain but can also expand into new domains The responsibility of corporate-level managers and the heads of divisions Strategy

2. 2 Business-level: A plan to combine functional core competencies in order to position the organization so that it has a competitive advantage in its domain The responsibility of the top-management team (the CEO and vice presidents) Strategy

3. 3 Functional-level: A plan of action to strengthen an organization’s functional and organizational resources, as well as its coordination abilities, in order to create core competencies The responsibility of functional managers

4. 4 Calvin & Hobbes Know what your competition is doing, and adjust your strategy accordingly.

5. 5 SWOT Analysis Internal Environment Weaknesses Strengths Organization’s Mission Corporate Goals Operative Goals External Environment Threats Opportunities

6. 6 A Few Good Men Do the structure and culture of the U.S. Marine Corps fit its current environment? What about the “code”: unit, corps, God, country? Does the goal of flawless cooperation justify the use of harsh discipline?

7. 7 Paradigm Entertainment How has environment affected Paradigm’s strategy and external ties? How have resource dependence and concern about transaction costs affected Paradigm’s strategy? How have the environment and strategy at Paradigm influenced the organization’s internal structure and culture?

8. 8 Structure, Culture, and Environment A Few Good Men versus Paradigm Why is a flat, decentralized structure and loose, freewheeling culture appropriate for Paradigm? Is there any group within U.S. military organizations that would benefit from an organic structure and playful culture like Paradigm’s? How? Why?

9. 9 An organization that cannot create more value in its current domain often tries to find a new domain in which to compete. Diversification — producing new products for new markets — is one avenue for expansion. Typical Corporate Strategy

10. 10 Strategy at this level should: Select the domain of the organization Use resources and abilities to manage its environment to protect and enlarge that domain Typical Business-level Strategy

11. 11 Characteristics of Organizational Structure Associated with Business-Level Differentiation and Low-Cost Strategies Matrix structure Product team structure Product, market, or geographic structure Functional structure Differentiation StrategyLow-Cost Strategy Complex structureSimple structure Decentralized decision makingCentralized decision making High differentiationLow differentiation High integration Low integration Organic structureMechanistic structure

12. 12 To lead to competitive advantage, an organization should: Perform functional activities at a cost lower than that of its rivals OR Perform functional activities in a way that clearly differentiates its product from those of its rivals Typical Functional-level Strategy