Chapter 4

Question 1

Benefits of SWOT Analysis

Answer 1

Simplicity
Lower Costs
Flexibility
Integration and Synthesis
Collaboration

Question 2

Productive SWOT Analysis Keys

Answer 2

1. Stay Focused
2. Search Extensively for Competitors
3. Collaborate with Other Functional Areas
4. Examine Issues from the Customers’ Perspective
5. Look for Causes, Not Characteristics
6. Separate Internal Issues from External Issues

Question 3

SWOT Matrix

Answer 3

Four Cell Array

Based on customer perceptions, not manager perception

*Focus is on competitive advantage by matching strengths with opportunities

Question 4

Competitive Advantages

Answer 4

Arise from internal and external sources

• Are real differences between competing firms
• Can also be based more on perception than reality

Question 5

Operational Excellence

Answer 5

Focus on efficiency of operations and processes

Lower cost operations lead to lower prices for customers

Question 6

Product Leadership

Answer 6

Excellence in technology and product development

Most advanced, highest quality product offering

Question 7

Customer Intimacy

Answer 7

Understands customers better than competition

Develop long term customer relationships

Question 8

Four Directions for Strategic Efforts

Answer 8

Aggressive
Diversification
Turnaround
Defensive

Question 9

Aggressive Strategy

Answer 9

Many Internal Strengths - Many External Opportunities

Question 10

Diversification Strategy

Answer 10

Many Internal Strengths - Many External Threats

Question 11

Turnaround Strategy

Answer 11

Many Internal Weaknesses - Many External Opportunities

Question 12

Defensive Strategy

Answer 12

Many Internal Weaknesses - Many External Threats

Question 13

Strategy Canvas

Answer 13

Identifies factors currently in competition and what customers receive from existing offerings (horizontal axis)

Offering level by buyers for each factor (vertical axis)

Company’s relative performance across industry (value curve)

Question 14

4 Actions Framework

Answer 14

Reduce, Create, Raise, Eliminate

1. Which factors that industry takes for granted should be eliminated?
2. Which factors should be reduced well below the industry standard?
3. Which factors should be raised well above the industry standard?
4. Which factors should be created that the industry has never offered?

Question 15

Good Strategy

Answer 15

Match the firm’s strengths to the available opportunity

Question 16

Blue Ocean Strategy

Answer 16

Focus
Divergence
Compelling Tagline

Question 17

Focus Strategy

Blue Ocean

Answer 17

Does not diffuse the company’s efforts across all key factors of competition

The Value Curve shows focus

Question 18

Divergence Strategy

Blue Ocean

Answer 18

Differs from other competitors in the market

The Value Curve is unique from competitors

Question 19

Compelling Tagline Strategy

Answer 19

Clear-cut statement that delivers clear, compelling message to customers

Question 20

Marketing Goals

Answer 20

*Statements of broad, desired accomplishments

Attainability
Consistency
Comprehensiveness
Intangibility

Question 21

Marketing Objectives

Answer 21

*Specific, quantitative benchmarks use to measure progress towards achievement of marketing goals

Attainability
Continuity
Time Frame
Assignment of Responsibility

Question 22

Continuous Objectives

Answer 22

Similar to objectives from previous periods

Are only slightly modified over time - does not require new strategy, effort or implementation to be achieved

Question 23

Discontinuous Objectives

Answer 23

Significantly elevate the level of performance on an outcome

Requires new strategies

Part of applying for the Malcolm Baldrige National Quality Award

Question 24

3 Basic Strategies

Answer 24

Operational Excellence
Product Leadership
Customer Intimacy