• Unit 5: 21st-Century Strategy

    Researchers' interest in strategy has grown recently. The focus of many researchers has centered on the serious impact of using strategies in their organizations. For example, many organizations rely on psychology, specifically industrial psychology, to understand strategic planning in the business sector. In the past, managers assumed that all employees were motivated by the same factors. Therefore, leaders would offer the same rewards, such as paid time off or bonuses. They also assumed employees would behave similarly in the workplace based on motivation and encouragement. Managers now know that employees are unique and motivated by factors unique to their personalities and beliefs. Understanding a firm's culture and what motivates employees will allow strategic managers to extract more out of each individual.

    Additionally, the idea of innovation as a strategic leader has complemented the competitive advantage strategy. There are issues with getting to the top of an industry by innovating and then falling behind to rising competitors. Collectively, these issues are known as the innovator's dilemma, and technology companies have been divided on how to avoid falling victim to this problem (as have many other industries). Companies may try to approach this dilemma by maintaining a high level of capital and simply acquiring other companies. Google and Microsoft used two well-known examples of this strategy. From 2007 through 2009, Google acquired 24 companies, and Microsoft acquired 34.

    Finally, the diverse culture around the world is dramatically changing how we conduct business. Globalization encourages the world to recognize the importance of our global economy. Organizational leaders and managers must continually adapt to new strategies to create an inclusive and equitable workforce. The strategic manager must go beyond the borders of their own country to understand culture and diversity. Strategic management will require leaders to consider how to support their human capital beyond race and ethnicity. Strategic managers need to create space for diversity, including race, ethnicity, gender, sexual orientation, religion, age, disability, and socioeconomic status. The changes in technology have enabled even small companies of just a few people to outsource work to all corners of the world. A global view is critical for 21st-century leaders.

    Completing this unit should take you approximately 2 hours.

    • Upon successful completion of this unit, you will be able to:

      • apply modern strategic management techniques in a globalized environment;
      • choose the best alternative strategy under technological uncertainty; and
      • synthesize strategy options to maximize competitive advantage.

    • 5.1: Enterprise Culture

      • Globalization and Unemployment Page
        As you watch this video, note the meaningful activity that shaped the history and development of globalization of business. How does each activity affect strategy?
      • Competitive Advantage and the Value Chain Page

        As you watch these videos, note the application of competitive advantage in the global arena. The second video covers the application of competitive advantage in the global environment. Note the discussion of the value chain.

      • 5.1.1: Socialization

        • Organizational Culture Page

          Read this introduction to the role of culture in an organization. What is your organization's culture? Why is it essential to business strategy formulation and management?

          Then, watch the video and consider how an enterprise culture might change established organizations' norms and behaviors.

      • 5.1.2: Managerial Theories

        • MacGregor's Theory X and Theory Y Page

          Read this article. How does MacGregor's Theory X compare to Theory Y?

        • Ouchi's Theory Z Page
          Read this introduction to Ouchi's Theory Z. Would you rather work under theory X, Y, or Z? Which strategy is applicable for a manager in a global organization?

    • 5.2: Innovation

      • Digital Disruption or Technology Enabled Strategy Page

        Strategic managers have struggled with creating a best practice approach to addressing innovation's role in disrupting established businesses. In this video, one managing director challenges participants to consider innovation as more than technology. How does innovation affect your work and personal life?

      • 5.2.1: Sustained Innovation

        • A Four-Part Recipe for Sustaining an Innovation Pipeline Page
          Read this article on the role of innovation in strategic management. As our access to technology grows around the world, there continues to be a growing need to address the role technological advancement plays in the future of organizations. Management plays a pivotal role in ensuring their organizations are prepared to meet the demands of a growing innovative technological society. As a leader, consider the opportunities to embrace technology to best serve your consumers.

      • 5.2.2: Innovator's Dilemma

      • 5.2.3: Research and Development

        • The Diffusion of Innovation Page
          Read this article. How does diffusion of innovations affect access to technology for different cultures? Strategic managers often use this theory to explain the role diffusion innovation plays in helping to spread ideas throughout various groups and communities.

    • 5.3: Global Strategy

      • What Is International Trade Theory? Book
        Read this introduction to mercantilism and the difference between classical country-based theories and modern firm-based theories. What is the historical significance of mercantilism for international trade patterns?
      • Advanced Strategy File

        Review this presentation. How can organizational competencies be used as a competitive force?

    • Study Sessions

      These study sessions are an excellent way to review what you've learned so far and are presented by the professor who created the course. Watch these as you work through the unit and prepare to take the final exam.

    • Unit 5 Assessment

      • Unit 5 Assessment Quiz
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.
      • Unit 5 Writing Exercise Quiz
        Receive a grade

        Use this activity to practice contextualizing the information you've learned in Unit 5. Once you submit your answer, evaluate it using the provided guide to responding.