The Opportunity Paradox

The Opportunity Paradox Description

This is an MIT Sloan Management Review article. Capturing new growth opportunities is fundamental to strategy, innovation and entrepreneurship. These days, experimentation and improvisational change are in. But how should managers address the challenge? The answer, the authors argue, can be more complex and more crucial to a company's success than previously thought. Their research on mature corporations, growing businesses and new ventures suggests a paradoxical tension between focus and flexibility that can define or break a business. Based on more than 150 interviews with managers at 30 companies in North America, Europe and Asia, the authors conclude that focus is still critical and may be just as important as flexibility. What's more, they conclude that a company's focus may influence its flexibility and vice versa. There are two components to capturing a new business opportunity: opportunity selection and opportunity execution. Opportunity selection involves determining which customer problem to solve, whereas opportunity execution deals with solving the problem. The authors point out that most books, articles and thought leaders focus on opportunity execution -how to create value by developing solutions. But research suggests that innovation initiatives often move so quickly to identify a solution that the innovators have to cycle back to figure out which problem they are actually solving. The authors found that opportunity selection appears to matter as much as opportunity execution. More importantly, how managers approach opportunity selection (whether with flexibility or with focus) has a critical impact on how successful they are at opportunity execution. The authors observed that managers and entrepreneurs tend to fall into two groups: opportunists and strategists. Opportunists rely on a less scripted and more flexible approach to opportunity selection, letting emergent customer inquiries shape opportunity selection. Strategists follow a different pattern. They constrain the selection of opportunities so that they pursue opportunities that are more likely to result in success, and they try to capture several opportunities in a row versus one in isolation. The authors found that companies that were more focused in opportunity selection were often more flexible in opportunity execution.

Case Description The Opportunity Paradox

Strategic Managment Tools Used in Case Study Analysis of The Opportunity Paradox

STEP 1. Problem Identification in The Opportunity Paradox case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of The Opportunity Paradox case study

STEP 3. Industry Specific / Porter Five Forces Analysis of The Opportunity Paradox case study

STEP 4. Evaluating Alternatives / SWOT Analysis of The Opportunity Paradox case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis The Opportunity Paradox case study

STEP 6. Recommendations The Opportunity Paradox case study

STEP 7. Basis of Recommendations for The Opportunity Paradox case study

Case Analysis of The Opportunity Paradox

The Opportunity Paradox is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The Opportunity Paradox is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. The Opportunity Paradox case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. The Opportunity Paradox will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

The Opportunity Paradox case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of The Opportunity Paradox, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The The Opportunity Paradox case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, The Opportunity Paradox case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – The Opportunity Paradox

Step 1 – Problem Identification of The Opportunity Paradox - Harvard Business School Case Study

The first step to solve HBR The Opportunity Paradox case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Opportunity Selection is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Opportunity Selection, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the The Opportunity Paradox.

The external environment analysis of The Opportunity Paradox will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Opportunity Paradox case study. PESTEL analysis of " The Opportunity Paradox" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with The Opportunity Paradox macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for The Opportunity Paradox

To do comprehensive PESTEL analysis of case study – The Opportunity Paradox , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact The Opportunity Paradox

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on The Opportunity Paradox

Government policies have significant impact on the business environment of any country. The firm in “ The Opportunity Paradox ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Opportunity Selection is operating, firms are required to store customer data within the premises of the country. Opportunity Selection needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. The Opportunity Paradox has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Opportunity Selection in case study The Opportunity Paradox" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Opportunity Selection in case study “ The Opportunity Paradox ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Opportunity Selection in case study “ The Opportunity Paradox ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on The Opportunity Paradox

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ The Opportunity Paradox ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Opportunity Selection can compete against other competitors.

Government Scheme & Subsidies Impact on The Opportunity Paradox

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at The Opportunity Paradox case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on The Opportunity Paradox

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Opportunity Selection needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact The Opportunity Paradox

Social Factors that Impact The Opportunity Paradox

Technological Factors that Impact The Opportunity Paradox

Environmental Factors that Impact The Opportunity Paradox

Legal Factors that Impact The Opportunity Paradox

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Opportunity Paradox case study. PESTEL analysis of " The Opportunity Paradox" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: The Opportunity Paradox case study solution