Business Policy 1 Quiz Flashcards
Components of Diamond-E
- Managerial preferences
- Resources
- Organization
- Strategy
- Environment
Strategic Management
The process of assessing the environment regularly and making new updates
Role of a GM /4
- Setting Direction
- Assessing Performance
- Implementing a Strategy
- Creating a Strategy
The 4 components of the Balanced Scorecard
- innovation and Learning
- Internal Business process
- Customers
- Financials
How to assess the ongoing Strategy? /3
- Balanced Scorecard
- Qualitative Assessment
- Quantitative Assessment
what is a Mission statement
shows us want we want to achieve and is tangible in the long term
Value Proposition Strategy
- Goals
- Product Market FOcus
- Core Activities
Porters 5 Forces
- Rivalry
- Suppliers
- Buyers
- Potential Entrants
- Substitutes
Threats of buyers:
- No product Uniqueness
- Threat of backward Integration
The threat of High Substitutes when:
- Price Trade-off
- Switching Costs are Low
Industry Value Chain system /4
- Suppliers
- Firm
- Distribution Channel
- Customers
Within the Diamond-E Framework, what is Strategy and Environment?
A Need to do
How to assess performance with the Performance Matrix?
- Organizational health
- organizational Performance
What Quadrant in is the most desired when assessing performance and the least desired?
Most: Quadrant 1 (Desired State)
Least: Quadrant 4 (Crisis)
Typical Measures of Operating Performance /3
- Profitability
- Financial Position
- Market Performance
Typical Measures of Org Health /5
- Enthusiasm
- Boundaries
- Problem Solving
- Learning
- Sustainability
How do General Managers set Direction in an Organization? /3
- Vision: A sense of Direction
- Mission: it translates the vision into tangibleness
- Values: Basic beliefs that govern the organization
Vision
- Purpose, core beliefs and values connect through the environment to accomplish the mission for the business
Product Market Focus:
What are the products being sold and the business plan on how to sell it
What does the Value Proposition mean?
How does the business intend to ATTRACT customers and what does it offer.
Strategic Analysis Process /10
- Issue(s) Identification
- External Analysis
- Internal Analysis: Strategy
- Internal Analysis: Diamond-E
- Financial Analysis
- Competitor Analysis
- Strategic Choices
- Recommendation
- Action Plan/Implementation
- Risks/Contingency Plan
Industry Analysis? /5
- Value Chain System
- Drivers of Profitability (Porter 5)
- Why are some industries more attractive than others?
- Macroneomic Factors (PEST)
- Key Success Factors
Industry Value Chain
- Suppliers
- Firm
- Distribution Channel
- Customers
Firms Value Chain (iOOMSS)
- Inbound Logistics
- Operations
- Outbound Logistics
- Marketing & Sales
- Services
Porters 5 Forces
- Potential Entrants
- Industry Competitors
- Suppliers
- Buyers
- Substitutes
Questions to Porters 5
- Threat of New Entrants
- Power of Rivalry
- Threat of Buyers
- Threat of Suppliers
- Threat of Substitutes
Environmental Analysis
PEST:
Political
Economical
Social
Tech
2 Key Success Factors Questions
- How does the firm Survive Competition
- What do customers want? What basis do they choose between different offerings?
What is the threat of New Entrants factors? /4
- Supply/demand of the market
- Switching costs
- Tech
- Brand
Threats of Buyer Power? /3
- Concentration of too large or small volumes
- Product isn’t unique
- Threat of Backward integration (Value Chain)
Threats of Supplier Power? /3
- Switching costs
- They supply the uniqueness factor
- therefore they threaten Forward Integration
Power of Rivals? /4
- Industry growth is Low
- Exit barriers are high
- High Switching Costs
- They dominate Market Share
- Brand Uniqueness
The threat of Substitutes? /3
- Attractive pricing
- Switching costs are lower
Types of Goals in Value Proposition?
- Hard Goals
- Soft Goals
Types of Hard Goals; /4
- Profitability
- Market Position
- Growth
- Risk
Types of Soft Goals; /4
- Management
- Employees
- Community (local)
- Society (broad)
Product Market Focus Diagram
- Market Penetration
- Product Development
- Market Development
- Diversification
4 Generic Competitive Strategies
- Low-Cost Leadership: Competing on a lower price to beat the competition
- Differentiation Strategy: Unique features differentiate themselves within the market
- Focused Cost Leadership:
- Focused Differentiation:
- Stuck in the Middle: ex. Hudson Bay
What benefits of a successful Differentiation Strategy?
- Command a Premium Price
- Get Brand Loyalty
- Increase Unite Sales
Focused Cost Leadership?
Competing on price in a narrow market while, bringing a unique feature to the market
Generic Business Strategy Assessment Steps /4
- Low cost vs Differentiation
- Do the 4 elements reinforce or complement one another
- Does the value proposition resonate with the target market
- Does the business strategy fit with all other elements of the business
When Choosing a generic strategy what two elements do you look at?
- Economic Logic (Low-cost or Differentiation)
- Scope of Areas (Narrow vs Broad)
Ex of Cost Leadership
Walmart
ex. of Differentation
Coca-Cola
ex. of Focused Cost Leadership
Dollarama
ex. Focused Differentiation
Porter Airlines
Advantages of Low-cost Strategies /3
- Economies of scale are larger
- Production Design/Tech
Differentiation strategy advantages /3
- Unique factor for brand image
- Customization and convenience
- High Quality
Threats to Low-cost Strategy /2
- New Tech
- Bad Quality
Threats to Differentiation Strategy? /2
- Buyers won’t pay the price
- Costs of differentiation are too high
What are Management Preferences in the Diamond-E Framework?
A WANT TO DO
What are the Resources in the Diamond-E Framework?
A CAN DO
Management Preferences first Questions? /2
- Whose Interest are they acting in?
- What factors must be understood about them?
Roots of Strategic Preference for a Manager? /4
- Personal Attributes
- Character
- Competencies
- Job Context
Personal Attribute tests for a Manager?
- Personality (Big 5)
- Basic Needs for them
- Stability
- Influences on strategic performance
Management Preference Analysis steps /5
- Develop/analyze a Strategy
- identify the required management preferences
- Test the strategy (Required preferences vs observed ones)
- Develop Gap-closing analysis (Feasibility)
- Move to the next step of the Diamond-E Framework
Resources are?
FUEL required for the business to Function
Types of Resources /3
- Tangibles (Marketing, financials, OPS)
- Intangibles (Brand)
- Org Capabilities (routines, culture, core activities)
What do Resource-Based Strats do? /2
- Exploit Companies resources to offer value to the Customer
- Killing competition by developing different resources that substitute your rivals
“Barney” Strategic Resource Test: /4
- Value
- Rarity
- Inimitability
- Company Organized to take advantage of it
“BARNEY” test adding Q’s (VRIC):
1. 1+4 =?
2. None = ?
3. 1+2+4 = ?
4. All 4 =?
- 1+4 =Parity
- None = Competitive Disadvantage
- 1+2+4 = Temporary Competitive Advantage
- All 4 = Sustained Competitive Advantage
When are Resources strategically Valuable? /3
- Hard to copy
- Depreciates slowly
- You control its value
How is the Resouces Hard to Copy? /4
- Physical Uniqueness
- Path of getting the resources
- Combination of things
- Socially Complex
++_= Value Creation Zone
Scarcity+Approproability (who owns the profits) + Demand
Resource Analysis
- Develop a Strategy
- Identify Resource Requirements for the Strat
- Test Strat (What we have vs what we need)
- Financials
- Diamond-E Connection
Value Chain Analysis of Resources (Internal)
- Find Corporate resources
- Identify functional Areas of the Company
- Link resources to those functional areas
- Identify Competitive Resources
- Compare competitive resources to overall strategy
Types of Leaders: /2
- Corporation (Apples Leader)
- Individual Brilliance (Elon Musk)
How to change Organizational Capabilities? /3
- Leadership Behaviour
- Structure
- Management Processes
What 3 Components go into Management Processes?
- Decision-Making
- Operating
- Assessment and Reward (Motivation)
Theory X
Organizations are controlled by goals, threats, and Financial Rewards. Managers order staff.
Theory Y
Autonomy for people and they want organizational success
Different types of Organizational Structures /5
- Functional Organization (Low-cost)
- Product Organizations
- Geographic Organization
- Cellular Organization (not important)
- Matrix Org (combo of geo, product organizations)
Benefits and Cons of a Functional Org
benefit:
Standard product efficiency
Cons:
Slow Decision making
Benefits and Cons of a Product Org
Benefits:
Focus on each product
Cons:
Lose Efficiencies
Benefits and Cons of a Geographical Organization
Benefits:
- Good at tailoring to local markets
Cons:
- Lose Efficiencies
Benefits and Cons of a Matrix Organization
Benefits:
- Efficient and Effective
Issues:
Complex and Slow Moving
Sabotage is when?
When You cheat but it looks like it was hard to win
First racial integration in sports
Football
Why did teams get rid of racial prejudices?
Winning beats racism
What is a major factor in sports participation?
Family income
What makes youth sports so expensive (not registration) ?
- Travel Costs
- Time
