Lecture Three

Question 0

What is the difference between strategy and tactics?

Answer 0

Strategy lays out the goals that need to be accomplished in the future and the ideas for achieving those goals.
Tactics are a plan to attain a goal.

Question 1

What are the five steps in a business strategy

Answer 1

Mission: what we expect to accomplish
Goals: general statement of desirable outcomes
Objectives: specific measurable expressions of stated goals with specific targets and time frames
Strategies: the plan by which objectives will be obtained
Tactics: the plan by which objectives will be obtained (tactics are sales oriented efforts whereas the other steps were marketing oriented efforts)

Question 2

What is the difference between goals and objectives?

Answer 2

Goals are general qualitative descriptions of some desired state of affairs.
Objectives are specific expressions of these goals, specific targets, specific time periods.

Question 4

What are the nine steps of the strategic management process

Answer 4

1. Setting goals and objectives
2. Analysis of the current situation
3. swot analysis: strengths, weaknesses, opportunities and threats
4. Strategy design and choice of the best strategy
5. implementation plan design
6. strategy implementation
7. monitoring of environment and performance results
8. Analysis of variance from desired performance levels
9. Adjustments based on analysis of variance

Question 5

Most strategic planning models have:

Answer 5

process
situation analysis
forces of competition
plans for execution/implementation

Question 6

Draw the Boston Consulting Group growth share matrix

Answer 6

X-axis: relative market share
Y-axis: market growth rate
Stars: requires heavy investment to maintain market share. Objective is market ownership.

Question marks: may require significant investment. Success is questionable.

Cash cows: generate cash that fuels other parts of the organization.

Dogs: The resources to maintain the business can be more effectively applied elsewhere. One organization’s dog could be another organization’s cash cow.

Question 7

What are some criticisms of the BCG growth share matrix

Answer 7

It assumes that there is a relationship between market share and profitability.
Distinctions between star, cash cost,?, and dogs depends on circumstances.
Inherent subjectivity.
Key problem: the matrix is a SNAPSHOT in time. Current market growth may have little to do with FUTURE market growth. Future market growth may be very UNPREDICTABLE.

Question 8

Describe the Balanced Scorecard

Answer 8

Focus on specifying forward-looking* performance targets in four core areas:

Financial Performance Perspective
Customer Perspective
Internal Business Perspective
Stakeholder Value Perspective

Question 9

Market intelligence can be divided into what two things?

Answer 9

1. market research

2. competitive intelligence

Question 10

define market research

Answer 10

The systematic collection and interpretation of specific data related to the resolution of a specific problem or to satisfy a specific objective.

Question 11

Competitive intelligence

Answer 11

The collection and informed interpretation of what might appear at first as a number of random, unrelated events.

Question 12

Market research process:

Answer 12

1. Define the Problem and Research Objectives
2. Design the Research Method to Achieve Said Objectives
3. Collect the Data
4. Analyze the Data and Draw Conclusions
5. Present the Findings

Question 13

What are the three types of support decisions?

Answer 13

TARGETING decision

DESIGN decision

GO/NO GO decision

Question 14

What are the six sources of competition?

Answer 14

• existing direct competition
• channels
• upstream suppliers
• new entrants
• substitutes
• current partners (new!)

Question 15

Information to Collect on Individual Competitors

Answer 15

Goals
Strategies
Capabilities
Assumptions