Internal Scanning 2

Question 1

Corporate Value Chain Analysis

Answer 1

Primary activities

Support activities

Question 2

Primary activities

Answer 2

Inbound logistics
Operations
Outbound logistics

Question 3

Support activities

Answer 3

Procurement
Technology development
Human resource management
Firm infrastructure

Question 4

Page 23 and 24

Answer 4

graphs

Question 5

Functional strategy

Answer 5

maximizing resource productivity

Question 6

Business strategy

Answer 6

competitive and cooperative strategies

Question 7

corporate strategy

Answer 7

the overall direction of company and management of its business

Question 8

Business strategy (2)

Answer 8

focuses on improving the competitive position of a company’s or business unit’s products or services within the specific industry or market segment it serves

Question 9

Business strategy (3)

Answer 9

is extremely important because research shows that business unit effects have double the impact on overall company performance than do either corporate or industry effects

Question 10

Business and corporate strategy

Answer 10

Just as corporate strategy asks what industry(ies) the company should be in, business strategy asks how the company or its units should compete or cooperate in each industry.

Question 11

Competitive Strategy – asks these basic questions
P28 is an exam question
very important

Answer 11

Low cost

Differentiation

Question 12

Focus on niche

Answer 12

Cost focus

Differentiation focus

Question 13

Lower Cost strategy

Answer 13

Greater efficiencies than competitors

Question 14

Greater efficiencies than competitors

Answer 14

Lower cost strategy is the ability of a company or a business unit to design, produce and market a comparable product more efficiently than its competitors

Question 15

Greater efficiencies than competitors (2)

Answer 15

aims at the broad mass market 
requires efficient scale facilities, 
cost reductions, 
cost and overhead control; 
avoids marginal customers, 
cost minimization in R&D

Question 16

Lower Cost strategy

Answer 16

Provides a defense against competitors
Provides a barrier to entry
Generates increased market share
(Wal-Mart, Dell, Southwest Airlines)

Question 17

Differentiation strategy

Answer 17

Unique/superior value, quality, features, service

Question 18

Unique/superior value, quality, features, service

Answer 18

Differentiation strategy is the ability of a company or a business unit to provide a unique or superior value to the buyer in terms of product quality, special features, or after-sale service

Question 19

Differentiation strategy Can be associated with

Answer 19

design, 
brand image,
technology, 
features, 
dealer network, or 
customer service

Question 20

Differentiation strategy (2)

Answer 20

Lowers customers sensitivity to price
Increases buyer loyalty
Barrier to entry
Can generate higher profits
(Nike, Apple Computer, Mercedes-Benz)

Question 21

Entrepreneurial firms

Answer 21

follow focus strategies where they focus their product or service on customer needs in a market segment and differentiate based on quality and service
Cost Focus- Differentiation Focus-

Question 22

Cost Focus

Answer 22

low-cost competitive strategy that focuses on a particular buyer group or geographic market and attempts to serve only this niche to the exclusion of others

Question 23

Differentiation Focus-

Answer 23

concentrates on a particular buyer group, product line segment, or geographic market to serve the needs of a narrow strategic market more effectively than its competitors

Question 24

Stuck in the middle

Answer 24

when a company has no competitive advantage and is doomed to below-average performance
No competitive advantage
Below-average performance
( HP between IBM and Dell)

Question 25

Evolutionary cycle of competitive behavior

Answer 25

p 37