Session 3

Question 1

Can you give an example of a buying firm which end badly ?

Answer 1

Ex: Mellon Bank buy Boston Company (Asset management company), manager in Bank were not paid a lot but Boston Company’s managers have a luxury lifestyle. After the MNA, Boston Company’s manager were told to abandon their luxury culture. Conflicts, people leave the company and customers did it also

Question 2

Can you give an example of different company culture in Amazon/Whole food market ?

Answer 2

Whole Food Market provide also Book reading team and yoga classes , so it’s not the same corporate culture

Question 3

How can you use 5 Forces Model ?

Answer 3

You can use it to analyze Industry Attractiveness

Question 4

How do you have a high economic value ?

Answer 4

2 strategies:
- Have high value proposition
Or
- Reduce the cost

Question 5

What are the 2 types of Focused Business Strategies ?

Answer 5

2 Focused business :
1) Focused Differentiation (Ex: Mont Blanc expensive pens)

2) Focused Cost Leadership ( Ex: BIC - disposable pens and lighters at low)

Question 6

What are the 2 types of Broad Business Strategies ?

Answer 6

2 types of Broad Business Strategies:

1) Broad Differentiation (Ex: Apple - Iphone)
2) Broad Cost Leadership (ex: Wall-Mart)

Question 7

What is a differentiation strategy ?

Answer 7

Voir la slide avec la voix biatch

Question 8

Example of perceived value which decrease

Answer 8

Different depression drugs : Lilly’s prozac and Pfizer’s Sertraline, side effect, less demand less value

Question 9

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Answer 9

Firm B is diffirentiating for firm A.

Firm B has less cost than Firm C -> Firm has more economic value

Question 10

3 drivers that increase perceived value ?

Answer 10

3 drivers that increase perceived value :

1) Product features
2) Customer service
3) Complements (Pepsi also have Lay’s chips so it’s augmented they’re value).

Question 11

Example for buying Next cd-rom computer

Answer 11

1986 Lisa computer
1990 Next computer
Value increase but the cost of products increase a lot

Question 12

What are the goals of cost leadership strategy ?

Answer 12

1) Reduce cost below competitors
2) Offer adequate value
3) Reduce prices for customers
4) Optimize the value chain for low cost

Question 13

What are the drivers that keep costs low ?

Answer 13

1) COst of input factors

PAS FINI

Question 14

Ex of economiy of scope

Answer 14

ex: Touch Screen for Iphones and Ipad.

Question 15

What is an diseconomy of scale ?

Answer 15

Firm too big

Question 16

Economy of scale - Output per year (time-period)

Answer 16

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Question 17

Economies of Learning - Cumulative Outputs

Answer 17

Tesla’s to produce their vehicules

Question 18

How to read the learning and experience curve for firm A and B ?

Answer 18

Everytime you double your production/cumulative outputs, you got 10% lower of costs

Question 19

What is Blue Ocean Strategy ?

Answer 19

Blue Ocean Strategy = A strategy that combine both differentiation and cost-leadership activities

Question 20

Examples of Focused Cost Leadership

Answer 20

Ex: Cosco

For : Small business people

Question 21

What is Stuck in the Middle ?

Answer 21

You do not have high value, nor lost cost.

Ex: Toyota, shi tong, JetBlue