Strategy

Question 1

For what purpose do organizations exist?

Answer 1

To provide a service. NOT to make profit

Question 2

What are some typical objectives?

Answer 2

• Profit
• Social Responsibility
• more (slide18)

Question 3

What is the SWOT method of strategic analysis?

Answer 3

Strengths?
Weaknesses?
Opportunities?
Threats?

know them!

Question 4

What are some examples of opportunities?

Answer 4

• Possible new markets
• Strong economy
• Weak rivals
• Emerging tech
• Growth of existing market

Question 5

Examples of strengths?

Answer 5

• manufacturing efficiency?
• skilled workforce?
• good market share?
• strong financing?
• superior reputation

Question 6

Examples of weaknesses?

Answer 6

• Outdated facilities?
• Inadequate Research and Development?
• Obsolete technologies?
• Weak management?
• Past planning failures?

Question 7

Examples of threats?

Answer 7

• New competitors?
• shortage of resources
• changing market tastes
• new regulations
• substitute products

Question 8

What is Porters Model of 5 Strategic Forces

Answer 8

A model describing there being 5 forces acting on any organization that influence their strategy:

Industry Competition
New entrants
Substitute products or services
Bargaining Power of Suppliers
Bargaining Power of Customers

Question 9

What are 4 ‘Grand’ or ‘Master’ strategies?

Answer 9

Growth strategies- seek increase in size and expansion of current operation

Stability strategy- maintains current operations without substantial changes

Renewal strategy- tries to solve problems and overcome weaknesses that are hurting performance

Combination strategy- pursues growth, stability, or retrenchment in some factor like cost or time

Question 10

What are some examples of growth strategies?

Answer 10

Concentration strategies- expanding in the same business area.

Diversification Strategies- Related diversification
Unrelated diversification
Vertical integration

Question 11

What is horizontal integration?

Answer 11

purchasing of a competing company. A type of concentration strategy

Question 12

What is vertical integration?

Answer 12

buying of supplier or customer companies.

Question 13

What are some Global business strategies?

Answer 13

Globalization strategy: standardize products and advertising as much as possible

Multidomestic Strategy: Customize to local markets

Transnational Strategy: Balance efficiencies in global operations and responsiveness to local markets
geocentric view

Question 14

What is a strategic alliance? What are some different types of strategic alliances?

Answer 14

two companies (possibly even enemies or rivals) working together toward a mutual goal.

Outsourcing alliances- Uniting to get suppliers to lower prices or such.

Question 15

Whats the difference between e-commerce and e-business?

Answer 15

Commerce is exclusively commercial. Items bought/sold. Profit based.

E-business includes e-commerce as a subset within it, but includes the wider range of motivations and reasons for people paying for things. Like telecom services.

Question 16

What are some web based business models?

Answer 16

Brokerage model- Provides service of connecting buyers and sellers. Middle man.
Advertising model- provides info
Merchant model- Sells merchandise. Property. Transferrable objects.
Subscription model- Pay per term usage of service
Infomediary model - Spreads information
Community model-?

Question 17

In what 4 ways does the BCG classify potential investments?

Answer 17

Dogs, Cash cows, Question marks, Stars

2^2 matrix with axes: 1-cash generation, 2-cash usage for an investment aka Market share of product services

High-high: star Low-Low = dog

Question 18

What is BCG?

Answer 18

Boston Consulting Group: the organization that formulated the investment identifying system

Question 19

What are Porters generic strategies for competitive advantage?

Answer 19

Differentiation strategy- Making product more unique/identifiable
Cost leadership strategy- Offering at the best price
Focused Differentiation strategy: unique product in a niche market

Question 20

What are some examples of planning failures that hinder strategy implementation?

Answer 20

Failures Of Substance: inadequate attention to major strategic planning elements
Failures Of Process: Poor handling of strategy
Lack of participation error
Goal displacement error