Chapter 4 - Resources and Capabilities Flashcards

Question

Product life cycle

Answer 1

introduction growth maturity decline

Answer 2

Build Hold Harvest Divest

Answer 3

``` stars (build) questions marks (build, harvest, divest) dogs (divest, hold) cash cows (hold, harvest) ``` Shoot the dog, build a star, milk the cow, ask questions. - too simple - high market share might not mean competitive strength - high growth might require large investments - differentiation or niche strategies not considered - ignores synergies across products

Answer 4

market vs. business strength

Answer 5

Competitive capabilities vs prospects for the sector ``` Double or quit Growth Custodial Try harder Cash generator Phased withdrawal Divest Leader ```

Answer 6

Innovation is ignored Completeness of product range is important Ignores other rivals which might grow market share Unclear desired market share improvement What mix of cow, ?, * are good Questionable how cow, ?, * can be shifted

Answer 7

Involves the attribution of purchase price and the indirect costs to each product. Thus net profit can be identified. Indirect costs are attributed.

Answer 8

Brand expenditure can be spread DPP ignores customer needs Cross- subsidization ignored.

Answer 9

attracts early adopters early adopters might have high switching costs learning curve might bring cost advantage 1st mover might define industry standard enables skimming IP might bring revenue ``` Difficult gaining regulatory approval Uncertain demand High R&D costs Threat of low cost imitators cost of introduction ```

Answer 10

leader follower No tech change: remerchandising or New Market issue Improved tech: Reformulation, Improved Prod, Market extension New tech: Replacement, Product line extentsion, diversification

Answer 11

Product research (Idea and strat generation, value engineering, life cycle enhancements, backwards compatibility) Process research (Processes, Productivity, Planning, Quality mgmt)

Answer 12

Org: strategic and technical Fin: not easily planned Evaluation and control: lack obvioius payoff Staff problems: highly qualified, hard supervision and renumeration expectation

Answer 13

Market pull: provide what market wants Technology push: introduction of tech without initial market signal Collaboration: between supplier and customer

Answer 14

Gathering of data from targets or comparators to asses performance. Aims to improve performance.

Answer 15

Internal Competitive Functional (comparing internal functions) Process or activity

Answer 16

``` Mgmt support Determine areas and objectives Understand process and KPI Choose benchmark Org Measure performance Compare and Discuss Improvement program Monitor ```

Answer 17

Why are these products or services provided at all? Why in this way? What are other best practices? How should activity get reshaped?

Answer 18

Resources (revenue, employees, capital, qualifications, age of machinery, patents) Competences: sales calls per salesman, output per employee, materials wasted Linked activities: market share, profitability, productivity

Answer 19

``` position audit carried out by managers subject to change focuses on improvements and targets helps to innovate improves performance early performance warning ``` doing things right instead doing the right things yesterday's solution to tomorrow's problem catch up exercise depends on accurate comparators data not free and can divert mgmt attention sharing information with other companies can be a burden or even a risk might result in lower motivation