Chapter 1b

Question 1

Bowmans: Low Price / low added value

Answer 1

no frills approach

Question 2

Bowmans: Low price

Answer 2

price product relatively low to attempt to sell high volumes

Question 3

Bowmans: Hybrid

Answer 3

Mid-range price and moderate value

Question 4

Bowmans: Differentiation

Answer 4

high perceived value, branding is often important

Question 5

Bowmans: Focused differentiation

Answer 5

designer products, high price for perceived high value

Question 6

Bowmans: Risky, High Margins

Answer 6

Increase price, standard product

Prices are raised without adding any value to the product, potentially to make short-term gains

Question 7

Bowmans: Monopoly pricing

Answer 7

high price, low value

a classic monopoly where higher prices can be charged

Question 8

Bowmans: Loss of market share

Answer 8

low value, standard price

Question 9

The design school

Answer 9

strategy development is a formal process, use of the SWOT model

Question 10

The planning school

Answer 10

Formal, use of planning specialists, rational model

Question 11

The positioning school

Answer 11

sees strategy driven by the industry structure

Question 12

The environmental school

Answer 12

Strategy is reactive with respect to the environment

Question 13

The cognitive school

Answer 13

understanding strategy development requires an understanding of how the human mind works

Question 14

The entrepreneurial school

Answer 14

strategy development depends upon the vision of a key individual

Question 15

The power school

Answer 15

strategy results from power struggles between groups within the organisation and the market

Question 16

The cultural school

Answer 16

strategy development is a process of social interaction within the confines of the organisation’s culture

Question 17

The learning school

Answer 17

Strategy emerges through trial and error

Question 18

The configuration school

Answer 18

strategy is a conscious act of transformation in the organisation

Question 19

Mintzberg’s strategic safari: Prescriptive tools (others are descriptive)

Answer 19

Design school
Planning school
Positioning school

Question 20

Drucker: 5 fundamental questions that drive strategy

Answer 20

Mission?
Customer?
Customer values?
Results?
Plan?

Question 21

Barney: VRIN characteristics

Answer 21

Value
Rarity
Inimitability
Non-substitutability

Question 22

Define “competitive advantage”

Answer 22

An advantage over competitors that cannot be easily copied, and so can be maintained over a significant period of time.

Question 23

Positioning View (outside-in)

Answer 23

Competitive advantage flows from how an organisation positions itself in relation to its competitors, customers and stakeholders (its environment)

Question 24

The resource-based view (inside-out)

Answer 24

The organisation should focus on developing one or more unique competencies or assets, and then leveraging these for competitive advantage (outdated)