Strategy

Question 1

Strategy

Answer 1

Concept of how firms will achieve its objectives

Question 2

External vs Internal Strategic Analysis

Answer 2

External: Industry/competitor analysis
Internal: Resource based view

Question 3

Mission vs Objective

Answer 3

Mission: Fundamental purpose/values
- View of the future
Objective: Specific targets
- Measurable outcomes

Question 4

AVDSE

5 Elements of Strategy

Answer 4

1. Arenas
2. Vehicles
3. Differentiators
4. Staging
5. Economic Logic

Question 5

Arenas

Answer 5

Where?
- Product categories
- Market segment
- Geographic areas

Question 6

Vehicles

Answer 6

How will we get there?
- What means will we use to attain the needed presence in the chosen arena
- How will we grow/market ourselves

Question 7

Differentiators

Answer 7

How will we win?
- How do we differentiate ourselves from competitors to attract customers
- Requires choices & trade-offs

Question 8

Staging

Answer 8

What will be our speed & sequence of moves?
- Order & speed of implementing initiatives

Question 9

Economic Logic

Answer 9

How will we obtain our returns?
- Analysis of costs, expected profits, returns, etc.

Question 10

3 Types of Industry Structures

Answer 10

Fragmented: Many firms, low entry barriers, competitive pricing
In Between: Few firms, shared dominance (oligopoly)
Consolidated: 1 dominant firm (monopoly )

Question 11

Internal Analysis - Is this resource..? (4)

Answer 11

1. Valuable
2. Rare
3. Easily Substituted
4. Inimitable/Unique

Question 12

Barriers to Imitation (3)

Answer 12

1. Restrictive Access (patents, trademarks, lack of access to resources)
2. Path Dependency (Brand loyalty)
3. Causal Ambiguity (Culture, reputation, trust)

Question 13

5 Forces that Shape Strategy

Answer 13

1. Competitive rivalry within an industry
2. Threat of new/potential entrants
3. Bargaining power of suppliers
4. Bargaining power of buyers
5. Threat of substitute products