Mock Exam Flashcards
1
Q
Information and Power Asymmetry in Blue-Sky Holdings
- Information (2)
Red, Green/Yellow - Main Cause (3)
A
Information and PowerAsymmetry in Blue-Sky Holdings
- Redtail operational in regions with active senior management
- Greenfields and Yellowfin centralized at corporate HQ,
- → | creating a disconnect |
Main Cause:
- Centralized divisions structure
- HQ upper management,
regional sepparation for operational divisions - → | Resulting in power imbalances favoring centralized divisions |
2
Q
Missed Issues in Blue-Sky Holdings Entities.
(Missed Issue, Failure to Recognize ..)
- Greenfields Ltd (2)
- Redtail Ltd (2)
- Yellowfin Ltd (2)
A
Greenfields Ltd:
-
Missed Issue:
Overestimated monopoly position. -
Failure to Recognize:
External companies aiming for market share increase,
discontent with lower project hierarchies and declining contract prices.
Redtail Ltd:
-
Missed Issue:
Dependency on subcontracting
for heavy lifting equipment. -
Failure to Recognize:
Greenfields Ltd’s decision to end internal contractual obligations, resulting in the loss of a primary revenue stream.
Yellowfin Ltd:
-
Missed Issue:
Lack of awareness regarding government actions. -
Failure to Recognize:
Federal government actively reducing
a. heavy industrial manufacturing,
b. closing facilities,
c. and offshoring contracts.
3
Q
Environmental Changes
Affecting CBE
- General Environment (2)
- Competitive Environment (2)
A
General Environment
-
Technological Change
Real-time data analytics standard; reduced CBE’s unique advantage and delivery time. -
Government Regulations
(EU & Tariffs)
Forced CBE to raise prices due to regulatory changes and tariffs.
Competitive Environment
-
Increasing Competition
Intensified competition as competitors matched or reduced delivery times. -
Emergence of Substitutes
(Online Shops of Flower Farms)
Rise of online flower farm shops introduced substitutes, challenging CBE’s market position.
4
Q
CBE’s Business-Level Strategy
- Strategy
- Evidences (5)
A
Strategy
-
Differentiation Strategy
A generic strategy focused on creating unique and valued product or service offerings perceived industry-wide.
Evidences
Emphasis on Customer Economics (instead of supplier)
- CBE focuses on meeting customer needs, providing a service (delivery time and rareness) for which consumers are willing to pay a premium.
Unique Differentiation
Three-Day Delivery Time
- CBE guarantees a three-day delivery time throughout Europe,
a unique offering compared to competitors who require around five days.
Customer Satisfaction Emphasis
- CBE collaborates with customers on innovative applications and guarantees delivery time, reflecting a strong emphasis on customer satisfaction.
Offering Exotic and Premium Flowers
- CBE’s product selection includes exotic and premium flowers, contributing to the unique and differentiated nature of their offerings.
Premium Pricing
- CBE can charge a 15% premium compared to similar competitors, indicating that customers perceive and are willing to pay for the unique value provided by CBE’s differentiated offerings.
5
Q
Congruence Model Elements and Example:
Apple Music
- INPUT
Environment (General, Competitive), History, Resources - STRATEGY
- TRANSFORMATION PROCESS
People, Informal (Culture), Work, Formal (Structure) - OUTPUT
A
INPUT
-
Environment
-
General
Apple Music optimizes its sharing service with machine learning and sound technologies. -
★ Competitive
Monitors Spotify, Amazon, and Chinese entrants.
-
General
-
★ History
Pioneered legal digital music with iPod. -
Resources
Leverages a strong brand, music label relationships, and financial strength.
STRATEGY
-
★★ Differentiation ★★
Pursues a global mass market with superior technology and continuous innovation.
TRANSFORMATION PROCESS
-
People
Employs passionate experts valuing creativity and attention to detail. -
Informal (Culture)
Cultivates a culture with a high Achievement need and collaborative debates. -
★ Work
Focuses on expertise in areas like machine learning and product design. -
Formal (Structure)
Adopts a functional structure for deep expertise development.
OUTPUT
- Satisfaction (Education Customers)
- Employee Satisfaction
- Attraction (New Customers)
6
Q
Diversity vs. Inclusion (2x3)
A
Diversity:
-
Definition:
Involves bringing marginalized individuals into the workplace. -
Nature:
Can be voluntary or mandated; legislated. -
Focus:
Encompasses a mix of people and their unique attributes, acknowledging differences as a fact.
Inclusion:
-
Definition:
Involves bringing marginalized groups into decision-making, ensuring equal access to resources. - Nature: Completely voluntary.
- Focus: Ensures engagement, participation, and a sense of belonging; a choice emphasizing active involvement.
7
Q
Name reasons for the give up of the consultant (3)
A
-
Political Power Play
at Board Level -
Organizations Working Against Each Other
→ Seen as Unwelcomed Outsider -
Disdain (Geringschätzung)
Against Middle Management & Subject-Matter Experts
8
Q
Name reasons why the implementation failed! (2)
A
- Lack of operational understanding
(communication) - Conflicting strategies
(missing congruence)
9
Q
What was the outcome for Greenfields? (2) X
A
Lose of …
- know how due to decoupling from Redtail
- bargaining power against suppliers
10
Q
What was the outcome for Redtail? (2) X
A
Loss of …
- know-how
- main Revenues stream due to decoupling from Greenfields
11
Q
What was the outcome for Yellowfin? X
A
Loss of customer base
due to liquidation of Redtail
12
Q
Name 3 reasons for the give up of the consultant!
A
-
Political power play
at board level -
Organizations work against each other
Seen as unwelcomed outsider -
Disdain against middle management and subject-matter experts
leads to recruitment of new talent and effective freezing out of operation managers and subject-matter experts during strategy development
13
Q
Name six reasons why the implementation failed! X
A
-
Little direction
from the board -
Conflicting strategies
(missing congruence) - Convincing greenfields
-
Lack of operational understanding
for Yellowfin (communication) - Yellowfin took activities from Redtail
- Shadow inventory
14
Q
Congruence Model
(Xerox - documentation)
In the early 1990s, the organizational structure resembled that of the Soviet Union, with a pyramid-like hierarchy.
However, the new CEO embarked on a mission to envision strategies for restructuring the business.
- Problems (2)
- Solutions (2)
A
Problems
-
Bureaucracy complexity
hindering managers from making key decisions. - Excessive internal focus
at the expense of customer demand.
Solutions
- Comprehensive transformation touching all aspects: work,
- structure, culture, and personnel. Dual-focused approach targeting
-
social
(individual & cultural) -
structural
(strategy & work performance) enhancements.
15
Q
PEST(LE) analysis:
TESCO - supermarket chain
(8)
A
Political:
- Governments encourage domestic job creation in retail.
Economic:
- Declining disposable income shifts focus to value brands.
Social:
- UK consumers favor bulk & one-stop shopping => increasing non-food item sales.
Technological:
- Online shopping with home delivery and self-checkout.
Legal:
- FRC proposes a Code of Practice banning certain practices, like price changes without notice.
16
Q
Business-Level Strategie
Swatch Group
- Problems (3)
- Solutions (3)
A
Problems:
1970s decline, mainly due to …
- quartz watch invention,
- Swiss companies’ self-satisfaction,
- Chinese competition.
Solutions:
- Shared production bases
for cost efficiencies. - Utilized (Nutzung)
Swiss watch tradition
for affordable, stylish products. - Diversified into …
Affordable vs. Expensive
Sports vs. Refined categories.
17
Q
Differentiation Strategy
- Key Components (4)
- Benefits (4)
A
Key Components:
- Product Innovation
- Technological improvements
(eg Distribution Channels, Customization & Quality) - Customer Service
Benefits: => Apple
- Command premium prices.
- Build customer loyalty.
- Enhance brand reputation.
18
Q
Focus Strategy
Key Characteristics (4)
A
- Niche Targeting:
- Deep Understanding
- Cost Leadership or Differentiation
- Limited Scope
19
Q
Cost Leadership Strategy
- Key Characteristics (4)
- Advantages (3)
A
Key Characteristics:
- Operational Efficiency
- Standardization
- Economies of Scale
- Supplier Negotiations
Advantages:
- Competitive pricing attracts price-sensitive customers.
- Enhanced bargaining power in the industry.
- Potential for higher profit margins despite lower prices.
20
Q
Shipbuilding Industry
General Environment
- Politics, Technology, Economy
- Competition
[⛵️ Case Sudy JoN]
A
Politics, Technology, Economy
-
Socio-political Exposure:
Influenced by socio-political forces, especially in military projects. -
Technological Edge:
Vessels are advanced but built by heavy industrial organizations. -
Massive Investments:
Requires significant investment, often from taxpayers.
Competition
-
Limited Domestic Competition:
Limited domestic competition; new entries rare without strategic, long-term investment. -
Intense International Competition:
Faces aggressive international competition.
21
Q
Shipbuilding Industry
-
Resources (5)
(tangible → intangible)
A
Tangible Resources:
- Complex plants require massive investments; operational continuity is crucial.
Unionization Impact:
- Global shipbuilding, highly unionized, grants workers strategic bargaining power.
Corruption Challenges:
- Waterfront industries globally historically prone to corruption.
Intangible Resources - Reputation:
- Takes decades to build, proven in large-scale conflicts.
Intangible Resources - Knowledge/Skills:
- Acquiring industry-specific knowledge/skills takes years;
- risk of loss to international competitors.
22
Q
Shipbuilding Industry
[⛵️ Case Study JoN]
improve Strategy and Goals
- Structure (3)
- Congruence (6)
What Holds the Organization Together
A
Defining Structure
-
Clear Vision
for Competition and identity -
Radical Reshaping
start with strategic initiatives -
Impact Consideration
in Design (culture, politics, and behavior)
Congruence
- Common Goals
- Resource Allocation
- Understanding Roles and Work
- Performance Measurement
23
Q
ECL Holding - Shipbuilding Overview
- Organization
- Entities
- Operations
- ★ Porter’s Value Chain
- ★ Strategic Goals
- Challenge
A
Organization:
- ECL Holding, a major shipyard conglomerate with a $2.5 billion turnover.
Entities:
- Three independent entities:
EC Ltd. (engineering and construction),
MP Ltd. (maintenance and plant),
CL Ltd. (Construction Logistics)
Operations:
- Seasonal fluctuations, contractual agreements, diverse revenue sources.
- Prioritizing revenue through cost reduction, process harmonization, and digitalization.
★ Strategic Goals:
- Holding provides minimal directives emphasizing revenue maximization.
Challenge:
- Mention of a potential “Kodak Moment,” highlighting the need for adaptability in a changing industry.
24
Q
Railtrack PLC Case - Privatization and Consequences
- Background
- Privatization ★
- Railtrack PLC
- Knowledge Outflow and Consequences ★
- Renationalization and Network Rail
A
Background:
- British Rail managed infrastructure (1948-1997), emphasizing modernization and economic service.
Privatization:
- Adopted NPM principles, reducing subsidies, and introducing profit orientation.
- Lack of clear mission led to confusion in the mixed economy.
Railtrack PLC:
- Formed with goals like increased efficiency, customer focus, private investment, and clear standards.
- Drawn from NPM principles and Transaction Cost Economics (TCE).
Knowledge Outflow and Consequences:
- Aggressive outsourcing by Railtrack led to knowledge outflow.
- Underinvestment and lack of experience caused major rail accidents, prompting renationalization in 2002.
Renationalization and Network Rail:
- Network Rail took over infrastructure in 2002, in-housing maintenance, but construction remained outsourced
25
Q
Prorail Case - From Outsourcing to Alliance
- Background
- Challenges and NPM Arguments
- Knowledge Outflow and Contracting Model
- Core Activities and Measures
- Preventing Knowledge Outflow
A
Background:
- Dutch railway company NS aimed to modernize post-war infrastructure.
Challenges and NPM Arguments:
- Loss of haul (Transportverlust) and inefficiency led to 1980s restructuring.
- NPM principles for efficiency, competition, and network expansion.
Knowledge Outflow and Contracting Model:
- Legal separation (1996-2002) prompted massive outsourcing.
- Initial model shifted roles, but informal efforts prevented total loss of control.
Core Activities and Measures:
- Identification of critical in-house skills for assessing contractors.
- Sector process model and new management processes introduced for improved efficiency.
Preventing Knowledge Outflow:
- ProRail, established in 2005, introduced matrix structure and restructured information flows.
- Informal learning from British failures implemented as a formal process.
26
Q
Apple’s Music Evolution
- iPod Innovation
(2001-2005) - iTunes Music Store
(2003-2006) - Challenges and DRM System
- iPhone Impact
(2007) - iTunes Dominance
(2010)
A
iPod Innovation (2001-2005):
- Apple launched iPod offering significant storage.
- Introduced variazioni like mini, nano, and shuffle for enhanced choice.
iTunes Music Store (2003-2006):
- iTunes, initiated in 2003, reached one billion downloads by February 2006.
- Steve Jobs convinced producers to join, marking a significant shift in digital music consumption.
Challenges and DRM System:
- Apple’s DRM system prevented illegal sharing, but faced challenges from competitors like Napster and Motorola.
iPhone Impact (2007):
- iPhone’s release marked Apple’s entry into the smartphone market.
iTunes Dominance (2010):
- iPhone’s success propelled iTunes to become the world’s largest music retailer.
