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Strategy > Exam > Flashcards

Exam Flashcards

1
Q

What is PESTEL analysis?

A 
Political factors
Economic factors
Socio-cultural factors
Technological factors
Environmental factors
Legal factors
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2
Q

What are Porter’s Five Forces?

A 
Threat of entry
Power of suppliers
Power of buyers
Threat of substitutes
Rivalry among existing competitors

Strong forces reduce productivity

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3
Q

What are the additional forces to Porter’s Five?

A

Institutional stakeholders

Complements

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4
Q

What are the two principal strategic variables that distinguish organisations?

A 
Scope of activities (ie geographical coverage, number of market segments served)
Resource commitment (level of service quality, product range)

Often sit on a graph as x- and y-axes

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5
Q

What is VRISO?

A

A framework used to identify sustainable competitive advantage

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6
Q

What does VRISO stand for?

A 
Value
Rarity
Imitability
Substitutability
Organisation
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7
Q

What are the primary activities in the Value Chain Framework?

A 
Inbound logistics
Operations
Outbound logistics
Marketing & sales
After-sales support

Activities that relate directly to the physical creation of the product or service

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8
Q

What are the support activities of the Value Chain Framework?

A

Firm infrastructure (ie financing, planning, investor relations)
Human resource management (ie recruiting, training, compensation system)
Technology development (ie product design, testing, process design, material research)
Procurement (ie components, machinery, advertising)

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9
Q

What are the implications of value in VRISO?

A

If not adding value then at a competitive disadvantage

If adding value then move onto rarity

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10
Q

What are the implications of rarity in VRISO?

A

If not a scarce resource or capability then you are putting the company in a position of competitive parity and the marketplace is more challenging
If yes then value and rarity is identified and move onto imitability

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11
Q

What are the implications of imitability in VRISO?

A

If not expensive or difficult to replicate or substitute then it may have value and rarity but will be easy to copy and you have a temporary competitive advantage
If yes then focus on organisation

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12
Q

What are the implications of organisation in VRISO?

A

If don’t have organised management systems, processes, structures to capitalise on resources and capabilities then it will be difficult to fully realise the potential and you have an unused competitive advantage
If yes then you have achieved the ultimate goal of sustained competitive advantage

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13
Q

Which are the frameworks to consider for external analysis?

A

PESTEL
Porters 5 forces
Strategic groups

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14
Q

Which are the frameworks to consider for internal analysis?

A

Value chain framework
Resources/competitive advantage
VRISO

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15
Q

What are the frameworks to consider for competitive advantage?

A

Cost leadership
Differentiation
Blue ocean strategy

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16
Q

What are the frameworks to consider for corporate advantage?

A

Diversification
3 tests
BBB options

17
Q

What are the frameworks to consider for a changing/turbulent environment?

A 
Platforms (network effects)
Execution
Renewal
Structure
Social dimensions
18
Q

What does it mean to be a cost leader?

A

May include economies of scale, proprietary technology, preferential access to raw materials
Must find and exploit all sources of cost advantage
Does not necessarily affect price, it could just benefit margins

19
Q

What are three key factors are important for differentiation (dimensions of differentiation)?

A

Consistency (quality)
Customising
Convenience (packaging)

Then can do for product or service

20
Q

What is the 4-step process to differentiation?

A
  1. Carve up the market from every angle to identify customers who are responsive to differentiation
  2. Differentiate offerings into the dimensions of differentiation
  3. Bundle several differentiations into a brand and then communicate
  4. Align business capabilities to reinforce and defend the brand and underlying sources of differentiation
21
Q

How do you design a Blue Ocean Strategy?

A

Includes differentiation and cost leadership at the same time

22
Q

What are the three tiers of non-customers?

A

Tier 1 - Soon to be
Tier 2 - Refusing
Tier 3 - Unexplored

23
Q

What is the summary of Blue Ocean Strategy?

A 
Do not use the competition as a benchmark
Make the competition irrelevant
Offer something unique in value
Teaches to focus on non-customers
Goal is to create a new demand
24
Q

What are the two types of diversification?

A

Related and unrelated

25
Q

What is the three-test method to create corporate advantage?

A

Attractiveness test - diversification directed towards actual or potential attractive industries

Cost of entry test - cost of entry must not capitalise all future profits

Better-off test - the new unit must gain competitive advantage from it’s link with the corporation

26
Q

What are the BBB options and when are they used?

A

Build - create new resources through internal development

Borrow - partner with other organisations to gain access to the resources

Buy - acquire another firm through merger or acquisition

These are used in corporate advantage

27
Q

What are examples of chicken-and-egg problem solutions (strategies)

A

Slow and steady - build together the two sides in lockstep

Create a single- or double-sided high-status affiliates strategy

Partner with someone who already has a large user base

Enter with a significant pre-investment

Provide single-user utility

Act a producer of one side

Bribe the chicken - make it easy, low-risk and low-cost for one side

28
Q

What are some examples of strategic challenges for multi-sided platforms?

A 
Number of sides to bring on board
Design of the platform
Pricing structure
Governance rules
Threat of development
29
Q

What are the elements of scandals?

A

A negative perceived event or action

Gains notoriety with a relevant audience

30
Q

What are the effects of scandals?

A

Contagion effect - if you’re in the same industry as the company, you may be affected

Association effect - if you are not in the same industry but you are associated with the company

Individual effect - executives who who have to pay a penalty

31
Q

How do you manage scandals?

A

Apologise
Transform
Recategorise
Non-apology (defend)

32
Q

How do you analyse the value resources?

A

Human resources
Tangible resources
Intangible resources

Strategy (1 decks)

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