Chapter 02 - Implementing Strategy

Question 1

what are the 2 main competitive strategies?

Answer 1

1. cost leadership
2. differentiation

Question 2

what are the 4 methods of implementation?

Answer 2

1. swot analysis
2. focus on execution
3. value-chain analysis
4. balanced scorecard (BSC)

Question 3

swot analysis

Answer 3

systematic procedure for identifying a firm’s CSFs: its internal strengths and weaknesses, and its external opportunities and threats

Question 4

strengths

Answer 4

skills and resources that the firm has more abundantly than other firms

Question 5

weaknesses

Answer 5

represent a lack of important skills or competencies relative to the presence of those resources in competing firms

Question 6

core competencies

Answer 6

skills or competencies that the firm employs especially well

Question 7

what are the 4 elements of swot analysis?

Answer 7

1. strengths
2. threats
3. opportunities
4. weaknesses

Question 8

internal elements

Answer 8

look at product lines, management, R&D, manufacturing, marketing, and strategy

Question 9

external elements

Answer 9

look at barriers to entry, intensity of rivalry among competitors, substitute goos, and customer/supplier bargaining power

Question 10

qualitative measures (aka., value propositions)

Answer 10

CSF that represent the critical process in the firm that delivers value to the customer

Question 11

value chain analysis

Answer 11

strategic analysis tool for better understanding the details of the organization’s competitive strategy

Question 12

what are the 3 phases of the value chain analysis?

Answer 12

1. upstream
2. operations
3. downstream

Question 13

upstream

Answer 13

product development and links with supplies

Question 14

operations

Answer 14

manufacturing or service gets done

Question 15

downstream

Answer 15

this links with customers through delivery and service

Question 16

what are the 2 steps of the value chain analysis?

Answer 16

1. identify the value chain activities at the smallest level possible
2. develop a competitive advantage by reducing cost or adding value

Question 17

value activities

Answer 17

when firms in an industry perform activities of design, manufacture, and provide customer service

Question 18

what are the 3 things a firm must consider when developing a competitive strategy?

Answer 18

1. what is our competitive advantage?
2. where can we add value for the customer?
3. where can we reduce costs?

Question 19

balanced scorecard (BSC)

Answer 19

implements strategy by providing a comprehensive performance report that contains the organization’s CSFs

Question 20

what are the 5 benefits of the BSC?

Answer 20

1. provides a means for tracking progress on implementing strategy
2. aligns managers’ efforts with strategy
3. when an organization changes strategy, the BSC provides a means to achieve the desired change
4. can be used to determine management’s compensation and rewards
5. coordinates efforts within the firm to achieve CSFs

Question 21

strategy map

Answer 21

cause-and-effect diagram of the relationships among the CSFs in BSC

Question 22

sustainability

Answer 22

involves the balancing of the 3 dimensions of the company’s performance - financial, social, and environmental