Week 5 seminar differentiation

3BM020 Organisational Strategy & Decision Making Seminar Question: 2014 - Week You have been appointed the personal assistant to the chief executive of a major manufacturing firm, who has asked you to explain what is meant by ‘differentiation’ and why it is important Use appropriate references, models, illustrations and concepts where relevant Please attempt to answer the questions and submit an electronic copy of your answers via the link on the Moodle site for week of this module, before 7:00am on Wednesday 22nd October 2014 Bring a copy of your work to the seminar sessions in week Suggested answer: Differentiation The purpose of this question is predominantly to establish whether students are able to explain the concept of differentiation, not only in terms of ‘being different’ but rather in terms of, for example: • That differentiation means providing both products and services valued by customers/users, and doing this in ways that are difficult to imitate • This is likely to be achieved by building on core competences of the organisation However, the more perceptive students may point out that this is difficult to achieve and manage So, organisations may not be able to create bases of non-imitability readily For other organisations, differentiation may be achieved by being flexible or faster to respond in markets than competitors, but that this, too, is a function of the culture of the organisation Students should therefore be able to make linkages between the concepts of differentiation explained and perhaps the link with organisational resources, competencies and capabilities discussed in week lectures • Overall, however, perhaps the most important basis of successful differentiation is the ability of an organisation to understand customer needs and what is valued by the customer better than competitors: that there is a danger that differentiation is driven largely on technical grounds rather than by an awareness of customer needs G Littlewood/2014 seminar week • The better quality of answer will offer some relationship relevant concepts for example to Porters models on Generic strategies • Students may also relate to the strategy clock as a source of application and explanation Relationship might also be made towards resources, strategic capabilities, competencies and the VRIO/VRIN models • G Littlewood/2014 seminar week ... resources, strategic capabilities, competencies and the VRIO/VRIN models • G Littlewood/2014 seminar week