Chp 1 Supporting Corporate Business Strategy

Question 1

What are Mintzbergs 5Ps?

Answer 1

Pla-plo-pat-pos-per

Plan 
Ploy 
Pattern
Position
Perspective

Question 2

What can you use to decide where to spend company resources (pg 8)?

Answer 2

Boston Consultancy Group

Assess market growth (vertical) by market share (horizontal)

• Question marks
• Stars
• Dogs
• Cash Cows

Question 3

What are areas that the supply chain impacts (pg 15)?

Answer 3

Areas impacted

• Material flow
• Responsivity to market
• Improved information

Profitability impacts

• Mark up on profit
• Reduction in costs
• Cost of fulfilment
• Inventory management
• Supplier cash control

Question 4

What are the external supply chain risks (pg 21)

Answer 4

STEEPLED

Socio cultural
Technical
Ecological
Economic
Political
Legal
Ethical
Demographic

Question 5

What are some internal supply chain risks (pg 21)?

Answer 5

McKinsey 7S

Strategy 
Structure
Staff
Style
Skills
Systems 

All around shared values

Question 6

What are the three steps of risk management strategy (pg 25)?

Answer 6

I AM risk

Identify
Assess
Manage

Question 7

What are the five ways of dealing with risk (pg 25)

Answer 7

Tolerate - leave as is
Treat - reduce the impact/ likelihood of the risk
Transfer - insure / outsource ie pass to another party
Terminate - avoid
Take - take an opportunity

Question 8

What can create competitive advantage (pg 31)?

Answer 8

Porters five forces

• Threat of new entrants
• Bargaining power of suppliers
• Threat of substitutes
• Bargaining power of buyers
• Rivalry within the market / existing competitors

Question 9

What are the components of competitive advantage (pg 32)?

Answer 9

Hill et al 2017

• Superior quality
• Superior innovation
• Superior customer responsivity
• Superior efficiency

Question 10

How to decide when to use outsourcing to achieve competitive advantage (pg 41)?

Answer 10

Barnes 2008

Strategic importance (vertical low / high) vs contribution to operational performance (horizontal low to high)

See partners and increase efficiency
Keep in-house
Reduce dependency
Outsource

Question 11

What is enterprise profit optimisation (pg 37)?

Answer 11

Extension of Enterprise resource Planning

Dynamic optimisation of

• Capital
• Procurement costs
• Sale opportunities
• Production capabilities
• Information

Steps

1) Set optimal price
2) Place orders
3) Fulfilment
4) Re optimisation pricing

Question 12

What are the aspects to consider when changing markets (pg 65)

Answer 12

1) structural change (ie porter’s 5 forces)
2) expansions/ contractions on the size of the market
3) actor centric changes (ie between porter’s 5 forces)

Question 13

What are the steps in supply chain management when managing Total Quality Management (pg 49)

Answer 13

• Evaluate Supply Chain
• Assess Performance
• Select appropriate partners
• Consider core competencies
• Review and improve
  (then back to evaluate)

Question 14

How to assess strategic alignment (pg 75)

Answer 14

Venkatraman, Henderson and Oldach (1993)

Quadrant
Strategic fit on vertical
Functional integration on the horizontal

Misaligned
Highly effective
Unresponsive
Misaligned