Strategic capability

Question 1

What are Critical Success Factors (CFCs)?

Answer 1

Small number of key goals vital to the success of an organisation

Question 2

What is the 9Ms model used for?

Answer 2

To identify resources which are available to the business and those resources may need to be addressed to achieve CFCs

Question 3

What are the 9Ms?

Answer 3

Men (HR) - No., skills, motivation, potential
Machines - Premises, location, age
Money - Finance available, access
Materials - Relations with suppliers
Markets - Existing customers, distribution
Management - Quality, skills, leadership
Methods - Activities and processes
Management Information Systems - Quality to assist marketing, R&D
Make-up - Attitudes, culture

Question 4

What is Human Capital?

Answer 4

The collective attributes of an organisation’s HR.

Question 5

How can Human Capital be improved?

Answer 5

Education and training
Allowing creativity
Infrastructure
Motivation
Competition

Question 6

What are core competences?

Answer 6

Critical activities and processes which enable the firm to meet CSFs and achieve a sustainable and competitive advantage

Question 7

What are the 3 main sources in Kay’s core competence model?

Answer 7

Reputation - reason consumers are attracted
Competitive architecture - network of relations
Innovative ability - ability to develop new products/services

Question 8

What is value chain analysis used for?

Answer 8

To analyse business activities which add value to the products/services produced by a company

Question 9

What are cost drivers?

Answer 9

Factors that cause costs to be incurred

Question 10

What are value drivers?

Answer 10

Potential sources of value

Question 11

What are the primary activities in value chain analysis?

Answer 11

Inbound logistics - receiving, storing and distributing inputs
Operations - transform inputs into final product
Outbound - collecting, storing & distributing final products
Marketing - informing & persuading customers to buy
Service - after sales e.g. installation

Question 12

What are the support activities in value chain analysis?

Answer 12

Procurement- acquiring inputs
Technology
HR management - recruiting, managing, training etc
Infrastructure - planning, finance, quality control etc

Question 13

What can strengthen the value chain?

Answer 13

Outsourcing e.g. payroll
Automation
Shared servcie centres

Question 14

What is the Boston Consulting Group (BCG) matrix used for?

Answer 14

To help analyse product portfolio in terms of market share and market growth

Question 15

BCG matrix - High market growth, high market share

Answer 15

STAR - Need to keep reinvesting to maintain market share
Little cash surplus

Question 16

BCG matrix - High market growth, low market share

Answer 16

PROBLEM-CHILD - Invest heavily to increase share
Or consider whether to diversify

Question 17

BCG matrix - Low market growth, high market share

Answer 17

CASH-COW - Generates positive cash flow
Should you “milk the cow” by minimising reinvestment?

Question 18

BCG matrix - Low market growth, low market share

Answer 18

DOG - “Put the dog down” by divesting
Or hold on to the product as part of overall portfolio