Management Chapter 4

Question 1

What is strategy?

Answer 1

Strategy is a plan of an organization on how it intends to compete and win in its market place. Strategy is definitive tool for building and maintaining the direction of the business.

Question 2

What is the intention of strategy?

Answer 2

The intention of strategy is to take basic ideas of business and express them in operational terms.

Question 3

What questions do you ask on overseeing strategy?

Answer 3

Questions we ask overseeing strategy is what the desired destination organization wants to get to, what is the path or plan of them getting there, and what are the signs that they are getting there.

Question 4

What are the strategy components?

Answer 4

1. Goals: what are the goals of the business
2. Product market focus: what product or services does business sell and to what market
3. Value Proposition: How does business intend to attract customers
4. Core activities: what does business plan to do to add value

Question 5

What is the role of strategy?

Answer 5

Strategy plan is a tool used by mangers to set goals and track progress of an buisness and see if it’s going in right direction. Two Examples are:
1. Hub for analysis: what an organization is about
2. Link to action: what needs to be done

Question 6

What is the strategy in a single business?

Answer 6

It is a strategic buisness unit in a large corporation who sell to an identifiable group of customers.

Question 7

What is business strategy?

Answer 7

Buisness strategy is how to create value in a particular line of business. They think how to compete within the industry

Question 8

What is corporate strategy?

Answer 8

Corporate strategy deals with portfolio of business strategies and how they relate to each other. They think of which industries to compete in.

Question 9

What is the definition of goals and what are it’s types?

Answer 9

Goals: are what a business intends to achieve. Two types of goals are:
1. Hard goals: focuses on aim and performance of the business. Examples are probability, market position and growth.
2. Soft goals: targets the social conduct of the business. Examples are employees and society.

Question 10

What is goal structure?

Answer 10

Goal structure represents the important aims of the business. The goals must be placed in order of priority or what we know as goal structure.

Question 11

How can the goals be described using strategy?

Answer 11

Goals can be described using strategy as:
1. Growth strategy: it shows priority to market and plant to grow the business.
2. Harvest Strategy: it has a stingy approach towards investment and spending is priority
3. Divest: it prioritizes actions that prepare the sale of the business.

Question 12

How does goals and competitive advantage relate to each other?

Answer 12

Companies can use goals to distinct themselves from their competitors. For example be more aggressive or take greater risks.

Question 13

What is product market focus and some of it’s types?

Answer 13

Product market focus are goods and services business intend to offer. Some types are:
1. Downstream: focusing on customers
2. Upstream: focusing on resources and selling them

Question 14

How does product market focus and competitive advantage related?

Answer 14

This means to concentrate on product market where competitors are weak or simply uninterested.

Question 15

What is Value position and it’s strategies?

Answer 15

Value proposition is what a business offers that is different than what other offer. Strategies like:

1. Low cost: providing products/services at a lower cost then your competitors.
2. Differentiation: is quality or service that makes the product different then what your competitors offer.

Question 16

What is structuralist approach?

Answer 16

Structuralist approach is a way company works that it should either be cheapest or offer something special and unique.

Question 17

what is deconstructionist approach?

Answer 17

A business strategies can change how an industry works and they can both use low cost and differentiation strategy in this kind of approach.

Question 18

What is vertical integration?

Answer 18

Vertical integration is when a business owns or buys the supply or manufactures that manage the supply chain.

Question 19

What is horizontal integration?

Answer 19

is when a company buys another company in its own field. For example if apple bought Samsung.

Question 20

What is an important point on value proposition?

Answer 20

The value proposition is a statement that explains how a product or service solves a customer’s problem and provides them with benefits. It should be expressed in terms of the customer’s needs, such as the price they will pay and the features they will get in return. he goal is to show the customer why your product is a good investment for them.

Question 21

What does value proposition help with to other businesses and an example?

Answer 21

Businesses use value proposition to differentiate themselves from other businesses. For example, Costco does by using low cost strategy and selling goods at low cost and high quantity. Also, whole foods uses differentiation strategy by provided preservative free food and etc.

Question 22

What are Henry Mint bergs Strategies?

Answer 22

1. Plan: blueprint of what a company wants to do in future
2. Position: where a company’s at and how they want to use their resources
3. Ploy: set of tactics they want to use or how to outsmart competitors
4. Perspective: they way they do things
5. Pattern: what worked in past may work in future

Question 23

What is conglomerate?

Answer 23

It is no common element across business enterprise. For example how TATA owns different type of industries like steel, clothing and car.

Question 24

What are schools strategy is influenced by?

Answer 24

1. Design School
2. Positioning School
3. Planning School

Question 25

What are types of corporate strategies?

Answer 25

1. Pure play: where 95% revenue comes from business unit.
2. dominant business unit: where 70-95% revenue comes from single business unit
3. Unrelated diversification: less than 70% revenue comes from dominant business and no common links.

there is also two types that come between dominant and unrelated:
1. Related Constrained: where less than 70% revenue comes from any input and there is a lot of links
2. Related Linked: less then 70% revenue from any unit and a few common links