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The article introduces the authors’ “ Imagination Premium™” metric which assesses the confidence of the investing community in a business’ growth strategy.

The article explains how the Imagination Premium is calculated and applies it to several cases--Amazon, Tesla and Buffalo Wild Wings.

Amazon’s implied value of growth was nearly four times its value from operations, a result completely consistent with its “profits are optional” motto. Amazon is a prototypical example of a company that is built to thrive in the ‘transient advantage economy.

Sky-high expectations for growth can be dashed by external events over which businesses have little control as Tesla found out. Unless a business can show, as Amazon has historically done, that it can turn expectations into gold-spun reality, lofty investor expectations can become a liability.

By applying the Imagination Premium concept to successful and problematic cases the authors illustrate the risks and advantages of a bold growth-before-profits strategy.

Exponential organizations (ExOs) are purpose-driven companies that leverage exponential technologies and exponential business practices to grow and scale rapidly, transform industries and create massive value and impact. In contrast, non-ExOs follow a linear approach to business and organizational strategy design and execution. This study aims to validate the hypothesis, based on financial metrics, that ExOs outperform their competitors and linear counterparts. Furthermore, it also brings a new understanding of the gap raised in the past eight years about how ExOs can achieve significantly better performance, measured with financial metrics.

For measuring how exponential an organization is, this study elaborated a completely new assessment tool called Exponential Quotient (ExQ). This study applied ExQ to the 100 largest US headquartered companies as ranked by Fortune magazine in 2014. Calculating the ExQ enabled this study to rank these Fortune 100 companies and identify the most and the least exponential firms. This study tracked these companies as to how they performed on different financial metrics over the eight years of 2014–2021 and analyzed the results.

Through the analysis, this study revealed that the top 10 ExOs have significantly outperformed their bottom 10 non-exponential peers, delivering 40x higher shareholder returns, 2.6x better revenue growth, 6.8x higher profitability and 11.7x better asset turnover. Furthermore, this study could identify commonalities and similarities between the two groups. This means that ExOs can thrive even in tough times and that accelerating technologies unlock abundance and allow every organization to become a disruptive innovator and stay ahead of the competition. These are novel results in the research focusing on the gap between exponential and traditional organizations.

Using the ExQ diagnostics tool, every organization can see how flexible, scalable and agile they are, which is the starting point for an exponential transformation program. Although this approach has already found its way into practice and is applied globally by thousands of organizations (startups, scaleups and incumbents), so far, the academic establishment is in its nascent phase. With this research, the authors wanted to extend this field of science. On the other hand, because of its novelty, no appropriate previous studies existed to compare the results.

The possible implications showed that there is a plannable way for significantly increasing an organization’s ExQ and advance it from a linear toward an exponential organizational model.

The results validated the robustness of the ExO framework and philosophy and shed light on the importance of exponential transformation – a proven method to increase an organization’s ExQ. This framework is not a “how to be successful” guide. Instead, it uncovered some of the previously unknown and universal mechanisms of scalability – which, in turbulent times, make companies successful (based on financial metrics). To the best of the authors’ knowledge, this study was among the first kind of in-depth analyses to validate the whole ExO model.

Provides lessons in strategic agility from the presentations of two Drucker Forum thought leaders at the annual conference in Vienna in November.

Summarizes the Drucker Forum conference presentations of Steve Blank, a Silicon Valley serial-entrepreneur, and Professor Carlota Pérez.

Blank warns that, “Companies and government organizations are discovering that innovation activities without a defined innovation pipeline are likely to result in innovation theater.” 10; 10;Pérez believes the world has an historic opportunity to turn our environmental problems into economic solutions.

Pérez warns “Business is trapped in the illusion that a minimal state is always best.”

Steve Denning highlights paradigm shifting lessons that Blank and Pérez have to offer managers.

The purpose of this paper is to present a viewpoint on aligning strategy and execution to produce superior business results.

The paper examines the long-term financials of the top ten growers to reveal companies that have continued to grow in good economic times and bad, including the Great Recession. While some companies dug deeper into their core businesses during the financial crisis, others continued to innovate.

Where companies continued to focus on strategy execution, they were rewarded, for example, Amazon’s compound annual growth rate for the ten-year period that included the financial crisis was 36.45 per cent; in the past three years, Amazon’s compound annual growth rate (CAGR) has been 56.76 per cent. Most of the top ten long-term growers are headed by the same founder/entrepreneur.

Look beyond the past three years for models of successful strategy execution.

For long-term company leaders, entrepreneurs, or turnaround experts, strategic execution is no oxymoron, but a requirement for growth and, ultimately, their unique responsibility.

The paper identifies three major focus areas for strategy teams and company leadership: 1. customer centricity and strategy execution; 2. learning from survivors; and 3. rethinking capabilities and talent.

As a professor of strategic management and as a consultant to organizations on strategy and marketing transformation, we have focused on the activities that are necessary for leaders to create effective strategy and to execute successfully. We have also been responsible for equipping the larger teams of strategy professionals (and future strategy professionals) who support these leaders with the approaches, the methods, and the tools necessary to plan effectively, to assess effectiveness, and to correct problems in strategy and execution. We bring that perspective to this viewpoint paper.

In the digital economy, what are the strategies of multinationals from developed countries and emerging markets? How do regulations in the home country affect their growth? Recent digital multinationals in diverse national and institutional contexts raise questions that require new approaches in international business (IB) studies. This chapter examines two leading firms in the global e-commerce industry: Amazon and Alibaba. We compare their digital capabilities and physical asset-building strategies over the past two decades and we connect the Internet governance environment in the United States and China with their business models and internationalization patterns. We argue that despite the platform and global nature of Amazon’s and Alibaba’s activities, the recent moves of governments across the world to regulate Internet governance poses an important challenge for digital multinationals. This research features a comparative analysis of two prominent digital multinationals and identifies a promising area for future IB strategy studies.

This research delves into a comprehensive examination of Amazon’s Vendor Flex (VF) model, seeking to illuminate the intricacies of supply chain innovation through alliances between Amazon and its suppliers. Employing a multiple case study methodology, the study investigates the reduction of transaction costs, the establishment of strategic alliances for supply chain innovation and governance issues within these alliances.

A multiple case study methodology, incorporating personal interviews and triangulation with primary sources, was employed to unravel the dynamics of the VF model.

Results indicate that the VF model aligns with the reduction of transaction costs by leveraging Amazon’s specialized knowledge, although not necessarily through direct knowledge sharing. Amazon suppliers highlight competitive advantages gained through VF, showcasing efficient navigation of peak seasons and a focus on core activities with online retailing integration. The VF alliance represents a collaborative model where Amazon’s technological prowess enables a streamlined and innovative supply chain for online retailing, which resembles a vertical integration process.

This research underscores the potential of strategic alliances to drive innovation by incorporating industry-leading practices. The governance issues within the VF alliance reveal power imbalances, emphasizing the need for managers to govern dynamics, disclose information and build trust in large-scale alliances.

The purpose of this study is to understand how Amazon’s threat may impact the Pharmacy Industry as a whole and whether traditional drugstore chains such as consumer value stores (CVS) Pharmacy will need to re-think their business strategy, especially in the digital space, to account for potential disruption.

This is a hypothetical case study used as a teaching exercise to guide the learner through a decision-making process. The case starts by presenting a disruption in the retail pharmacy business that the main character must navigate by using real-world data and insights, provided in the case, to formulate a recommendation.

In an extremely competitive and consolidated pharmacy market, Amazon has the potential to change the business entirely. CVS Health will potentially face strong headwinds from Amazon’s PillPack and a downward trend in prescription sales. Regardless of the new competition, CVS Health continues to be innovative in the space. Instead of being a one-trick pony, CVS has encompassed the mentality of becoming a one-stop-shop by expanding into areas such as specialty pharmacy, health clinics, pharmacy benefits management and innovative digital capabilities.

This paper provides the reader with existing and known information about the evolving retail pharmacy business and allows the reader to interpret the new information to make their own decision on how a digital business strategy team can account for potential disruption.

A corporate innovation strategy implies that a firm’s strategic intent is to continuously leverage entrepreneurial opportunities for growth- and advantage-seeking purposes. Corporate innovation has gained greater research attention with a focus on the factors that influence an organization’s willingness to initiate and sustain an innovation strategy. In the current disruptive age, firms acknowledge the importance of corporate innovation (also referred to as corporate entrepreneurship) as the critical element for sustained competitive advantage in the global economy. Yet, it has been reported that many organizations struggle with the actual implementation of an innovative strategy. While there are key challenges that must be addressed by today’s corporate innovative leaders in this age of disruptive innovation, many of today’s technological companies are finding success in reaching for the future. As research on corporate innovative activity has evolved, there is still a need to examine some of the latest innovative developments with the technological sector since they are regarded as leading this disruptive age. This chapter examines the most recognized companies in the technological space and discusses their newest explorations. In addition, a framework is presented to illustrate similarities and differences in their approaches to corporate innovation activity.

This case focuses on valuation using various methods to price a firm. Students attempting this case should know the basics of how to value a company using discounted cash flow, comparable multiples and comparable transactions. Students will need to calculate the weighted average cost of capital using comparable companies and the capital asset pricing model and determine differences in value created by an acquisition vs a leveraged buyout (LBO). The case also discusses qualitative issues in mergers, such as fit between target and acquirer, integration issues, potential high debt from LBO.

This case was library-researched, using Amazon and Whole Foods public filings and business press papers.

Whole Foods Markets received a buyout offer from Amazon. Whole Foods could solicit offers from other firms, including firms more directly in the grocery business. Whole Foods also considered a management buyout or purchase by a private equity firm. Whole Foods had underperformed, with a falling stock price and reduced profitability. Amazon’s bid was attractive, a premium of about 40 per cent over Whole Foods’ pre-merger stock price. Whole Foods also wanted to consider issues such as culture. Whole Foods’ strategy was to sell organic foods at premium prices, while Amazon was a retail discounter with a largely online business.

This case is appropriate for graduate students at the end of their introductory course or for graduate or undergraduate students in a corporate finance elective, particularly a merger/restructuring elective. The case has been used in an advanced undergraduate finance elective, with a team presenting the case to the class, with remaining students in the class required to write case summaries and questions for the presenting group.