Mod 4: Strategy

Question 1

Strategy

Answer 1

Ensemble of decisions on

Objectives, means,resource allocation

Question 2

Objectives

Answer 2

By top mgmt

• vision& mission
• main goals

Question 3

Effective visions

Answer 3

Have imagery & are emotional
Linked to values (freedom, peace, safety…)or social concerns (- poverty, + environment)

*Go beyond economics

Question 4

Effective missions

Answer 4

Answer to who are customers, what do they need, how we satisfy them

Question 5

Means (actions)- strategy formulation

Answer 5

SW: production tech (efficiency)
        Products ( innovativeness)
        Workforce (motivation)
OT: changing environment (econo, socio,tech, poli) OR task environment (5PF)
* internal is always first

Question 6

5 porter forces

Answer 6

Competitor rivalry
New entrants threat
Substitute threat
BP of suppliers
BP of buyers
* any increase = bad

Question 7

Still strategy formulation (both corporate & business level)

Answer 7

Takes advantage O, builds S
Corrects W, counters T
* como FS y luego BB

Question 8

Corporate level strategy

Answer 8

BCG (market growth & share): ID dogs, cows, ?, stars

Growth:

• concentration: + products in same line
• vertical integration: manufacture own RM, distribute own FG
• HI: mergers & acquisitions (FS+BB)
• diversification: enter a related industry (synergy) or unrelated (- risk)

Question 9

Bus level strategy (competitive advantage)

Answer 9

Cost leadership: eres al que menos le Cuesta producir en toda la industria [no name, walmart]
Differentiation: unique (quality/innovative) but widely valued products [apple]
Focused low cost: lowest cost in a segment
Focused differentiation: most differentiated In a segment

• none is better than others! but depends on nature of co’s particular SWOT

Question 10

To maximize effectiveness what should be aligned?

Answer 10

Org strategy, structure, control systems, culture, change initiatives
+ congruency, + performance