Strategic Capability

Question 1

Resource-based approach

Answer 1

views resources and competencies as a source of strategic advantage (internal approach)

Question 2

Kay’s three sources (Core competences)

Answer 2

~ competitive architecture
~ reputation
~ innovative ability

Question 3

9Ms - competences and resources evaluation

Answer 3

~ Men and woman
~ Machines
~ Money
~ Materials
~ Markets
~ Management
~ Methods
~ Management info systems
~ Make up

Question 4

Value chain

Answer 4

business activities that add value

primary and secondary

Question 5

Value chain: primary activities

Answer 5

~ infrastructure
~ HR
~ technology development
~ procurement

Question 6

Value chain: secondary activities

Answer 6

~ inbound logistics
~ outbound logistics
~ operations
~ marketing and sales
~ service

Question 7

Harmon’s process-strategy matrix
Strategic importance: low
Complexity and dynamics: low

Answer 7

automate/outsource

Question 8

Harmon’s process-strategy matrix
Strategic importance: low
Complexity and dynamics: high

Answer 8

outsource

Question 9

Harmon’s process-strategy matrix
Strategic importance: high
Complexity and dynamics: low

Answer 9

automate

Question 10

Harmon’s process-strategy matrix
Strategic importance: high
Complexity and dynamics: high

Answer 10

improve

Question 11

Advantages of shared service centres

Answer 11

~ reduced headcount and operating efficiencies
~ sharing knowledge - resource pooling
~ consistent service provision

Question 12

Disadvantages of shared service centres

Answer 12

~ loss of knowledge
~ reduced added value
~ weakened team relationships

Question 13

Methods of benchmarking

Answer 13

~ Internal - historical + branch comparison
~ competitive/strategic
~ activity
~ generic

Question 14

BCG matrix

Answer 14

~ star
~ question mark
~ cash cow
~ dog

Question 15

Star

Answer 15

~ build then harvest (growth stage)
~ HIGH market growth
~ HIGH market share

Question 16

Question mark

Answer 16

~ hold or build
~ HIGH market growth
~ LOW market share

Question 17

Cash cow

Answer 17

~ hold + harvest
~ LOW market growth
~ HIGH market share

Question 18

Dog

Answer 18

~ hold then divest
~ LOW market growth
~ LOW market share

Question 19

Limitations of BCG matrix

Answer 19

~ does not account for risk
~ focuses on known markets and products
~ difficulties in forecasting growth