chap 9

Question 1

Swot analysis, define internal and external

Answer 1

Internal : Strengths/weaknesses (what one can do)
External : opportunities/threats (what needs to be done)

Question 2

Mission statement (5 common elements)

Answer 2

• It must be short.
• The design must be simple.
• It has to provide direction.
• It should enable employees knowing exactly what the company does and
  what it does not do.
• It should be measurable.

Question 3

Business strategy

Answer 3

focuses on improving the competitive position of a company’s or
business unit’s products or services within the specific industry or
market segment that the company or business unit serve

Question 4

Competitive strategies(3)

Answer 4

1.Cost strategy (definition, means and requirements)
* The same thing as others do, but cheaper
2. Differentiation strategy (definition, means and requirements)
* Different from others, +/- expensive
3. Focus Strategy
* Serving well a particular client segment

Question 5

Cost leadership strategy (4 key cost)

Answer 5

Lower input costs.
Economies of scale.
Experience.
Product process and design.

Question 6

Focus strategy (2 types)

Answer 6

Cost-focus
Differentiaion focus

Question 7

Porter’s generic strategies

Answer 7

Broad (industry-wide): low cost (cost leader) or product uniqueness (differentitation)

Narrow (market segment) : low cost (focus strategy/low cost) or product uniqueness (focus strategy/differentation)

Question 8

Issue in competitive strategy

Answer 8

Stuck in the middle of the four