What reservations might you have about the ‘design-plus’ model of strategic management?
What will be an ideal response?
It is obviously a simplification and it has a clearly prescriptive or normative quality, i.e. it implies
that this is how strategic management should be done. In particular, it seems to be grounded in the
rational-planning frame of reference, which most enterprises of any size espouse, but do not
necessarily practice. Even those academics who have concentrated on studying other frames of
reference (e.g. Andrew Pettigrew on organizational power) may still emphasise essentially rational
decision-making within that framework. The challenge for mainstream teachers of strategic
management is that most students are current or aspirant managers who generally perceive the senior
executive role being to plan and to control strategy; therefore they want and expect a clear
framework that will help them ‘do’ strategy well. Another shortcoming of the ‘design-plus’ model is
that it tends to appear as linear-sequential, well structured and orderly. We address this issue further
in chapters 4 and 6.
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Fernando is the owner of Pick Food Restaurant. He makes an oral agreement with Purple Lotus Works for the design and production of 5,000 unique custom-made dinner plates with the logo of Pick Food Restaurant on them. Purple Lotus reworks its production schedule and creates dies to add Pick Food Restaurant's logo in the designer plates. A week later, Fernando calls Purple Lotus and says that he no longer wants the plates and calls off the deal. In this scenario, it is most likely that:
A. the parties' agreement is not valid since it was only an oral agreement. B. the agreement between Fernando and Purple Lotus is unenforceable and Fernando is protected under the statute of frauds. C. the parties' agreement is at Fernando's disposal because he is the customer. D. Purple Lotus is protected by the statute of frauds exception for specially-manufactured goods.
According to FASB ASC Topic 280 (Segment Reporting) how do firms identify reportable segments?
a. By designations used inside the firm b. By product lines c. By industry classification d. By geographic regions
A retailer takes 4 days to process an order and the supplier takes 12 days to deliver merchandise. The retailer should begin to order merchandise how many days before the old inventory runs out?
a. 3 days b. 4 days c. 16 days d. 48 days
In brainstorming, how should the group handle a seemingly outlandish idea?
A) Loudly discourage its originator. B) Welcome it. C) Ask for clarification. D) Ask that it be put in writing.