Rothaermel Exercise 1 
Rothaermel Exercise 1
BUSI 690
29 June 2014
Discussion Question 1.1 (2 parts to this question):
1.1. A strategy is a term used to describe the firm’s “overall efforts to gain and sustain competitive advantage” (Rothaermel, 2013, p. 9). The “translation of the strategy into action takes place in the firm’s business model, which details the firm’s competitive tactics and initiatives” (Rothaermel, p. 11). Basically, a strategy will explain how a firm will make money but the difference between a strategy and the business model is the business model explains how the firm intends to make the money AND puts it into action; the strategy just gives the theory. Business models put strategy into action. A strategy focuses on the company in relation to its competition and the business model focuses on the company in isolation.
1.1a. How they are similar is both business strategies and business models look toward a firm’s future and are both essential in decision-making within a company. A firm’s strategy and business model working hand in hand becomes the nuts and bolts behind how a firm intends to achieve its overall goal, which is to make and increase profit.
Discussion Question 1.2 (3 part to this question):
1.2a. Crowdsourcing is defined as “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers” (Merriam-Webster, 2014). The word is a combination of the words 'crowd' and 'outsourcing' and the idea is to take work and outsource it to a crowd of workers. Dell is keen on offering this service because the business model is awesome and translates real-time market research and design contests into quick sales. Crowdsourcing platform brings a human element, saves times and internal resources. Dell would be getting customer satisfaction because they know right away if a customer likes certain designs by allowing them
BUSI 690
29 June 2014
Discussion Question 1.1 (2 parts to this question):
1.1. A strategy is a term used to describe the firm’s “overall efforts to gain and sustain competitive advantage” (Rothaermel, 2013, p. 9). The “translation of the strategy into action takes place in the firm’s business model, which details the firm’s competitive tactics and initiatives” (Rothaermel, p. 11). Basically, a strategy will explain how a firm will make money but the difference between a strategy and the business model is the business model explains how the firm intends to make the money AND puts it into action; the strategy just gives the theory. Business models put strategy into action. A strategy focuses on the company in relation to its competition and the business model focuses on the company in isolation.
1.1a. How they are similar is both business strategies and business models look toward a firm’s future and are both essential in decision-making within a company. A firm’s strategy and business model working hand in hand becomes the nuts and bolts behind how a firm intends to achieve its overall goal, which is to make and increase profit.
Discussion Question 1.2 (3 part to this question):
1.2a. Crowdsourcing is defined as “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers” (Merriam-Webster, 2014). The word is a combination of the words 'crowd' and 'outsourcing' and the idea is to take work and outsource it to a crowd of workers. Dell is keen on offering this service because the business model is awesome and translates real-time market research and design contests into quick sales. Crowdsourcing platform brings a human element, saves times and internal resources. Dell would be getting customer satisfaction because they know right away if a customer likes certain designs by allowing them
References: Dontigney, E. (2014). 9 characteristics of an effective mission statement. Demand Media. Retrieved from http://smallbusiness.chron.com/9-characteristics-effective-mission-statement-18142.html Merriam-Webster. (2014). Crowdsourcing. Retrieved 29 June 2014 from http://www.merriam-webster.com/dictionary/crowdsourcing Rothaermel, F. T. (2013). Strategic management: Concepts & cases. New York, NY: McGraw-Hill.