Gemar Estrella, MBA 2

BA 939 Strategic Management

Assignment No. 2 (40 points)

1. Imitation strategies are based on the idea of copying another firm’s idea and using it
for your own purposes. Is this unethical or simply a smart business practice? Discuss
the ethical implications of this practice (if any). (10 points)

ANSWER: In the world of business, imitation is key. It's a smart business practice that can help
you build your brand and expand your reach—but it's also an ethical issue. The practice is at its
most basic level, just like any other business strategy, but it can be highly unethical when done
without proper consideration.

A) Is this unethical or simply a smart business practice?

The reason why imitation strategies are unethical is that they take advantage of the
original innovator's hard work and ideas. In many cases, this might not seem like a big
deal because the firm who has copied the innovation has a good enough product or
service to be able to compete with other firms. However, when you consider how many
firms have been created by copying other companies’ products, it becomes clear that
copying others' ideas can have far-reaching consequences.

B) Discuss the ethical implications of this practice

For example, let's say you're an entrepreneur who wants to start her own tech startup
but can't find any interesting innovations that are available on the market today. Instead
of trying to create something new yourself, which would be very difficult and time
consuming, you decide instead to get inspired by some successful startup companies in
your industry such as Uber or Airbnb—companies who have built successful businesses
by copying existing ideas from others.

In conclusion, imitation strategies are not necessarily unethical since they help companies stay
relevant with their customers by sharing information with them.

2. Strong cultures can have powerful effects on employee behavior. How does this create
inadvertent control mechanisms? That is, are strong cultures an ethical way to control
behavior? (10 points)

ANSWER: When a company has a strong culture, it can have powerful effects on employee
behavior. A company with a strong culture will have employees who are more likely to be loyal,
to work harder, and to stay with the company for longer periods of time. This is because
employees who feel like they belong in their workplace will be more likely to stay loyal and
perform well.

A) How does this create inadvertent control mechanisms?

The most obvious way that this happens is in the creation of inadvertent control
mechanisms. The strong culture of a company can create an environment where
employees are motivated to behave in a certain way—which is often beneficial for the
company's bottom line. But these same cultures can also lead to employees acting in
ways that aren't always beneficial for the company, or even for themselves. This creates
inadvertent control mechanisms, which are ethical and advantageous but not always
desirable.

B) That is, are strong cultures an ethical way to control behavior?

Strong cultures are also an ethical way to control behavior. Employees who feel part of a
community and supported by their co-workers will be more likely to continue working
hard and doing what they need to do in order to succeed at their job. This may mean
taking risks, working late nights, or going above and beyond the call of duty for the sake
of their colleagues. However, it also means that each employee will be held accountable
if they don't meet those standards, which can help keep everyone on task with their
work.

It's important for companies to make sure that their cultures are ethical and fair when they set
up these inadvertent control mechanisms so that they don't cause harm beyond just making
sure that people are doing their best work every day at work.

3. Why is it important for managers to carefully consider the type of organizational

structure that they use to implement their strategies? (5 points)

ANSWER: It is important for managers to carefully consider the type of organizational structure
they use to implement their strategies because a well-designed organizational structure will help
them achieve their goals more efficiently.

A well-designed organizational structure allows a company to efficiently manage its resources

and employees, which in turn allows them to deliver better customer service. A company that
has a well-designed organizational structure can also generate more revenue by providing
customers with the products or services they want, when they want them.

In addition to providing customers with products or services on demand, a well-designed

organizational structure can also help companies reduce costs by ensuring that every employee
knows what his or her job entails and how it relates to other employees' jobs. By doing so,
companies can ensure that all employees are working toward the same goal and that they are
able to communicate effectively with each other about how best to accomplish tasks at hand.

This is why it's so important for managers to carefully consider the type of organizational
structure they use to implement their strategies—the right one can make all the difference in
how well a strategy is implemented!

4. The knowledge a firm possesses can be a source of competitive advantage. Describe

ways that a firm can continuously learn to maintain its competitive position. (5 points)

ANSWER: A firm's knowledge can be a source of competitive advantage. A firm that has a high
level of knowledge about its industry and the competition can be an attractive option for
customers, and this market position can lead to higher profits.

A) Describe ways that a firm can continuously learn to maintain its competitive
position.

Firms that have high levels of knowledge often make use of internal customer surveys or
focus groups to determine what their customers want. This information is useful when it
comes to designing new products that meet customer needs and help the firm maintain
its current market position. Another way that firms collect knowledge is through research
on competitors' products or services, which helps them understand how their own
products are perceived by customers.

Firms can also learn by observing competitors' operations and taking note of what works
well in creating a positive impression with customers. For example, if one company has
a successful business model that others might want to emulate but don't know how to do
so effectively, another firm may want to look closely at what makes that company
successful so they can imitate those practices more closely in order to gain similar
results from their own offerings.

In order to stay competitive in today's rapidly changing world, companies must ensure that they
stay on top of potential threats by making sure that all employees understand what's happening
around them on an ongoing basis—from internal research projects through external events like
scientific conferences or industry events where new products are announced by competitors or
technology companies.
5. Innovation activities are often aimed at making a discovery or commercializing a
technology ahead of the competition. What are some of the unethical practices that
companies could engage in during the innovation process? What are the potential long
term consequences of such actions? (10 points)

ANSWER: Innovation is often a process of making discoveries and commercializing new

technology ahead of the competition. However, companies may engage in unethical practices
during the innovation process.

A) What are some of the unethical practices that companies could engage in during
the innovation process?

Some examples of unethical practices include:

1. Acquiring a competitor's patent or intellectual property to prevent others from using it
(anticompetitive behavior)

2. Using employees' personal information for competitive purposes (privacy and data
security concerns)

3. Lying about or withholding information from customers (dishonesty, trust issues)

4. Failing to disclose all relevant research data at the end of the project or before it's
publicly disclosed (conflicts of interest)

5. Using threats, bribes, or other forms of coercion to obtain cooperation from an

employee who may have valuable knowledge about a competitor's
product/service/technology (intimidation)

6. Defrauding customers by selling defective products or services (fraud)

B) What are the potential long term consequences of such actions?

The potential long-term consequences of these unethical practices that companies could
engage in during the innovation process are significant.

1. Acquiring a competitor's patent or intellectual property to prevent others from

using it is clearly anticompetitive behavior. This could cause an industry to stagnate
or even collapse altogether, as competitors can't legally innovate without first acquiring
patents and other intellectual property from other companies.

2. Using employees' personal information for competitive purposes could also

have serious repercussions on both privacy and data security concerns. This
practice often leads to more complex technological solutions which may be more
 expensive than they need to be, and it also means that employees are less likely to
share valuable information with their colleagues because they fear losing their jobs if
someone else learns about it.

3. Lying about or withholding information from customers could create distrust

among customers and result in lower sales as customers feel like they're being
lied to (or worse—that they're being conned). It also makes it difficult for companies
to build strong relationships with customers by making them feel like they're being taken
advantage of at every turn.

4. Failing to disclose all relevant research data at the end of the project or before
it's publicly disclosed (conflicts of interest). This can lead to competitors discovering
valuable information about an organization's product/service/technology that could be
used against them in a legal or regulatory battle. For example, if a researcher does not
disclose his/her financial ties to a company that was involved in creating a new drug or
device for treating asthma, then other companies will know about this conflict of interest
and may try to use it against that person during litigation or regulatory proceedings.

5. Using threats, bribes, or other forms of coercion to obtain cooperation from an

employee who may have valuable knowledge about a competitor's
product/service/technology (intimidation). If a company is not transparent about its
business practices and doesn't make sure that they are ethical and legal before
engaging in them with employees (especially those who have access to sensitive
information), then they could be guilty of intimidation—behavior intended to frighten
someone into cooperating with them (or trying harder not to cooperate).

6. Defrauding customers by selling defective products or services (fraud).

Companies may not be aware that they are engaging in fraudulent behavior, but they
can be held accountable. For example, if you were a car dealer and sold a car to
someone who was not paying their entire balance on their loan, you may have
defrauded them into buying the vehicle. The same is true for your company. You may not
realize that you are cheating your customers out of money or other resources, but if you
do realize it, then there are several ways that you can be prosecuted for this type of
fraud.

Using unethical business practices to gain an advantage over competitors (socially

unacceptable). For example, your company may use unethical business practices such as
stealing information from competitors in order to gain an advantage over them. This type of
behavior is socially unacceptable because it hurts other people and infringes upon their rights
as well as your own ethical responsibilities towards them.