A recent assignment given to executive MBA students asked them to link strategic change with a significant innovation adopted by their organization. One student based his response on the introduction of self-scanner checkout terminals in a British supermarket. This student failed in his assignment.
(a) Explain why you think he failed by discussing the differences between strategic and tactical/operational planning. Define the substantial differences between the levels of corporate planning (“business policy”) and illustrate this with examples of alternative time-scaling, management involvement, decision-making levels, significance of the changes and so on (60)
(b) Also explain exactly what innovation is and what impact it might make on growth strategies. In this respect reference to the Austrian economist Joseph Schumpeter’s idea of major innovation sending “gales of creative destruction” through the economic systems should be discussed particularly with regard to long wave business cycle theory. Refer also to the short and medium range business cycles (e.g. the Kitching and Juglar) and their relevance in this context. (40)
Report format using appropriate sub-headings with an introduction, summary conclusions and bibliography.
Word Limit 2300 to 2500 words.
Use business style report explaining how business cycles are linked to innovation and how business strategies are influenced.
Evidence of extensive reading and research. Use of accepted citation systems such as Harvard.
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