Final

Question 1

I/O Model

Answer 1

Driven by external influences
Attractive industries
Resource mobility
“Follow the crowd”

Question 2

Resource Model

Answer 2

Acquires resources to succeed in any industry

Resources > capabilities > core competencies > competitive advantage

Question 3

Internal/External/SWOT Analysis

Answer 3

Strengths + Weaknesses = Internal

Opportunities + Threats = External

Question 4

Effective Strategy

Answer 4

Who- to pursue
What- need to fulfill
How- to use core competencies to gain a competitive advantage
Why- what goal or benefit does it provide

Question 5

Business Strategies

Answer 5

Cost leadership
Focused cost leadership
Differentiation
Focused differentiation

Question 6

Cost leadership

Answer 6

Lowest cost, acceptable quality, standardized goods, cost efficient production, large company

Question 7

Focused cost leadership

Answer 7

Lower cost strategy on select brands or markets but NOT on all products/brands

Question 8

Differentiation

Answer 8

products/services are perceived as different/superior to competitors on multiple features, thorough understanding of customer needs, and continual upgrade of features/offerings

Question 9

Focused Differentiation

Answer 9

Differentiate on select brands or markets but NOT on all products/brands

Question 10

Diversification Models

Answer 10

Related linked
Related constrained
Unrealted

Question 11

Related linked

Answer 11

Less than 70% comes from dominant business. Only limited links between businesses (Frito Lay, Pepsi, KFC)

Question 12

Related Constrained

Answer 12

70% revenue from one business. All businesses share product, technological, and distribution links. (Pepsi, Mountain Dew)

Question 13

Unrelated

Answer 13

No common links between businesses, less than 70% comes from dominant businesses (Berkshire Hathaway)

Question 14

BCG Matrix

Answer 14

By relative Market Share/cash generation and Market growth rate/cash usage respectively
Star (high high)
Question mark (low high)
Cash cows (high low)
Dogs (low low)

Question 15

Ansoff Matrix

Answer 15

By Products and Markets respectively
Market penetration strategy (existing existing)
Product Development strategy (new existing)
Market Development strategy (existing new)
Diversification strategy (new new)

Question 16

Level 5 leadership hierarchy

Answer 16

Level 5 executive
Effective leader
Competent manager
Contributing team member
Highly capable individual

Question 17

Level 5 leader builds

Answer 17

Enduring greatness with paradoxical blend of

personal humility and professional will.

Question 18

Effective leader

Answer 18

Catalyzes commitment to and pursuit of a clear and compelling vision, stimulating higher performance standards

Question 19

Competent manager

Answer 19

Organizes people and resources toward the effective and efficient pursuit of predetermined objectives

Question 20

Contributing team member

Answer 20

Contributes individual capabilities to the achievement of group objectives and works effectively with others in group setting

Question 21

Highly capable individual

Answer 21

Makes productive contributions through talent, knowledge, skills and good work habits

Question 22

First who then what

Answer 22

Separates level 5 from level 4
WHO:
Get the right people on the bus
Build a superior executive team

WHAT:
Once you have the right people in place, figure the best path to greatness WITH THEM

Question 23

Hedgehog Concept

Answer 23

Hedgehogs:

1. Simplify a complex world into a single organizing idea – a basic principle or concept that unifies & guides everything.
2. See what is essential and ignore the rest.
3. Take a single concept & implement with fanatical consistency

Foxes:
Pursue many ends at the same time & see the world in all its complexity

Question 24

6 Steps of the Blue Ocean Strategy

Answer 24

Reconstruct Market Boundaries
Focus on the Big Picture
Reach beyond existing demand
Get the strategic sequence right
Overcome key organizational hurdles
Build execution into strategy

Question 25

6 Steps of Reconstructing Market Boundaries

Answer 25

Alternative industries
Strategic groups
Chain of buyers
Complimentary products and service offering
Functional and emotional appeal for buyers
Time

Question 26

Barriers to entry (there are 7)

Answer 26

1. Product Differentiation
2. Switching costs
3. Capital requirements
4. Distribution channels
5. Cost disadvantages independent of scale
6. Expected retaliation
7. Government policy

Question 27

What are the drivers of competitive behavior

Answer 27

Awareness (greater awareness of competitor reduces willingness to attack)
Motivation (Believe can gain market share with no retaliation)
Ability (Have the resources to overcome the competitor)

Question 28

Steps to competitor analysis

Answer 28

Analyze Competitor's:
Future objectives
Current strategies
Assumptions
Capabilities

Question 29

Market Response

Answer 29

1. Strategic moves elicit little or no response, tactical moves invite greater response
2. Competitors are more likely to respond to moves made by a market leader, less likely to respond to market follower or risky player
3. Competitors that depend significantly on the market will vigorously respond, if the market is a small part of the competitor’s business they may not respond