Chapter 13 book + lecture

Question 1

• how an organization mathces its own capabilities with the opportunities in the marketplace to accomplish its objectives
• how an organization can create value for its customers while differentiating itself from its competitors

Answer 1

strategy

Question 2

2 broad strategies of business

Answer 2

1. cost leadership
2. product differentiation

Question 3

is an organizations ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control
competitive advantage: lower selling prices

Answer 3

cost leadership

Question 4

is an organizations ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors
competitive advantage: brand loyalty and the willingness of customers to pay higher prices

Answer 4

product differentiation

Question 5

1. number and strength of competitors
2. potential entrants to the market
3. availability of equivalent products
4. bargaining power of customers
5. bargaining power of input suppliers

Answer 5

five forces industry analysis focuses

Question 6

what are the 4 persepctives

Answer 6

1. financial
2. customer
3. internal business
4. learning and growth

Question 7

the profits and value created for shareholders
or
evaluates the profitability of the strategy and the creation of shareholder value
which perspective is this ?

Answer 7

financial

Question 8

the success of the company in its target market
or
identifies targeted customer and market segments and measures the companys success in these segments
which perspective is this ?

Answer 8

customer

Question 9

the internal operations that create value for customers
or
focuses on internal operations that create value for customers which, in turn, help achieve financial performance
which perspective is this ?

Answer 9

internal business

Question 10

the people and systems capabilities taht support operations
or
identifies the people and information capabilities necessary for an organization to learn, improve, and grow. these capabilities help achieve superior internal process that in turn create value for customers and shareholders
which perspective is this ?

Answer 10

learning and growth

Question 11

is intended to balance financial with non financial measures of sucess

Answer 11

the balanced scorecard

Question 12

is my stratgey leading to more operating incomeis analyzed by 3 main factors

Answer 12

1. growth component (change in volume)
2. price-recovery component (change in prices)
3. productivity component (change in efficiencies)

Question 13

measures the change in operating income attributable solely to the change in quantity of output sold between two periods

Answer 13

growth component

Question 14

measures the change in operating income attributable soley to changes in prices of inputs and outputs between two periods

Answer 14

price recovery component

Question 15

measures the change in costs attributable to a change in the quantity of inputs used in current period relative to the quantity of inputs tha would be used in the prior period to produce the current period output

Answer 15

productivity component

Question 16

How do changes in sales volume (growth component) impact operating income ?

Answer 16

1. revenues are different (more or less units sold)

Question 17

how do changes in price (price-recovery component) impact operating income

Answer 17

revenues are different (higher or lower selling price)

Question 18

how does changes in use/efficiencies (product component) impact operating income

Answer 18

revenues are not affected

Question 19

revenue effect of growth- operating is affected because

Question 21

cost effect of growth