Reward and Punishment & Business level strategy Q&A


Topic 1: Reward and Punishment

What method of reward and punishment is used in your family, and how does it fit in with the three theories? Does it work? Utilize the theories discussed in your reading.

Topic 2: Business Level Strategy

Visit the websites of two luxury car makers:

  • Lincoln at
  • BMW at

These two automotive giants compete in the same strategic group. Browse each website and search for each company’s business-level strategy.

How are the luxury car competitors’ strategies similar? In what manner are they different? Which company has the competitive advantage and why?


Topic 1: reward and punishment

Rewards are usually offered to those who perform well or rather their efforts are recognized whereas punishments are always administered to discourage a certain undesirable behavior.  In my family, the extrinsic reward system is popular where individuals who put extraordinary efforts are rewarded with tangible rewards such as clothes and money. On the other hand, grounding and beating are the most popular form of punishment depending on the wrong that a family member has committed (Di Chiara, 2007).  A good and encouraging behavior should always be encouraged whereas undesired behavior should be curbed and stopped.   Both the reward and the punishment systems work effectively among the family members considering that each and every one of them wants to be rewarded, and no one wants to be punished at all costs.

Topic 2: business level strategy

The business-level strategy is meant to create value for customers while at the same time gaining a competitive advantage over their competitors. Various companies have different business strategy depending on the industry they venture in and the nature of their product.  The two giant motor companies have a similar business level strategy in that they both emphasize on building and developing a family vehicle that fuel efficient with best- in- class quality (Nandakumar, 2010). However, while Lincoln is focusing on accelerating the pace of progress of their motor and delivering excellence with passion, BMW motor company is focusing on having a strong brand image with a clear profile, distinctive quality as well as superior technology.   In my opinion, BMW has a competitive advantage over their competitors Lincoln motor company because the company focuses on reliability and commitment to the products fully to satisfy their customer’s needs as well as maintaining a larger market share than their competitors.


Di Chiara, G. &. (2007). Reward system and addiction: what dopamine does and doesn’t do. Current opinion in pharmacology, 7(1),, 69-76.

Nandakumar, M. K. (2010). Business-level strategy and performance: The moderating effects of environment and structure. . Management Decision, 48(6), , 907-939.