FINALE PEE PEE TOUCH

Question 1

List 7 different topics for long-term corporate objectives.

Answer 1

1) Profitability
2) Employee Development
3) Employee Relation
4) Productivity
5) Social Responsibility
6) Competitive Position
7) Technological Leadership

Question 2

Name and describe the 5 qualities of long-term corporate objectives.

Answer 2

Measurable—> clearly state what will be achieved and when
Motivating—> set at a level that is high enough to challenge but not so high as to
frustrate
Understandable—> understood by strategic managers at all levels
Flexible —> adaptable to unforeseen changes in a firm’s environment
Suitable—> suited to the broad aims of the firm, as expressed in the mission
statement

Question 3

Describe the “balanced scorecard” strategy.

Answer 3

A set of 4 measures that are directly linked to the company’s strategy and translating it into operational terms:

Remember as: CLIF

1) Customer
2) Learning and Growth
2) Internal Business Process
4) Financial

Question 4

Be able to explain, with an example, the 3 generic strategies of low-cost leadership, differentiation, and focus.

Answer 4

Low-Cost Leadership: low-cost producers excel at cost reductions and efficiencies; maximize economies of scale; use cost advantage to charge lower prices or enjoy higher profit margins.
Example: Walmart
Differentiation: strategies designed to appeal to customers with a special sensitivity for a particular product attribute; stressing the attribute above other product qualities to attempt to build customer loyalty; with customer loyalty, firm can charge premium price
Example: proctor & gamble detergent businesses
Focus: strategy that attempts to attend to the needs of a particular market segment; firm is willing to service isolated
geographic areas to satisfy needs of customers; tailor the product to the somewhat unique demands of the small- to medium-sized customer
Example: Bank of Delmarva lending in Baltimore

Question 5

What conditions favor concentrated growth? What are the risks and rewards of concentrated growth?

Answer 5

When target markets are not product saturated and there is not too much technological advancement. One risk is all your eggs are in one basket. One reward is enhanced performance.

Question 6

Be able to describe the “turnaround” situations and responses.

Answer 6

A turnaround situation represents absolute and relative-to-industry declining performance of a sufficient magnitude to warrant explicit turnaround actions.

Turnaround responses among successful firms typically include two stages of strategic activities: retrenchment and the recovery response.

Question 7

List 5 business’s cost leadership opportunities using skills, resources, and organizational requirements.

Answer 7

Remember as: CLIPP Cost….
Capital Investment and Access to capital
Low cost distr. Center
Intense Supervision of labor
Process Engineering Skills
Products are designed for ease of manufacturing

Question 8

List 5 business’s rapid response opportunities using skills, resources, and organizational requirements.

Answer 8

FADER (Hard R For rapid response)
Flexible Manufacturing 
Automation (High)
Downstream Partners (Strong)
Engineering Skills
Reputation for quality

Question 9

Name 4 strategy elements of successful firms in growth industries.

Answer 9

• Strong product design skills to be able to adapt products and services
• Strong capabilities in Sales and Marketing
• R&D resources and skills to create product variations
• differentiate the firm’s product[s] from competitors entering the market

Question 10

List 5 business’s differentiation opportunities using skills, resources, and organizational requirements.

Answer 10

CP-SCRAM
Creative Talent
Product Engineering
Strong Cooperation from Channels, Research AND Marketing.

Question 11

Name 4 strategy elements of successful firms in maturing industries.

Answer 11

Buyer selection to focus on buyers who are less aggressive and close to the firm
Emphasis on process innovation that permits low-cost methods
Emphasis on cost reduction
Product line pricing

Question 12

List 5 business’s market focus opportunities using skills, resources, and organizational requirements.

Answer 12

• narrow niche market
• narrow focus allows leverage advantages
• businesses “learn” its market customers
• businesses develop personal relationships with customers
• compete on the basis of low cost, differentiation, and rapid response

Question 13

MATRIX CHART

Answer 13

Y AXIS: OVER COME WEAKNESS (TOP), MAXIMIZE STRENGTH (BOTTOM),

X AXIS: INTERNAL (LEFT) & EXTERNAL (RIGHT)

COUNTERCLOCKWISE QUADRANTS:
 1=VERITCAL INTERGRATION. 
2=LIQUIDATION
3=INNOVATION
4=HORIZONTAL INTEGRATION