Module 2 (Lecture 2, Article, Tutorial 1) Flashcards
(21 cards)
4 steps in the stakeholder analysis
- Identifying relevant stakeholder groups (organizational, societal, economic).
- Prioritising stakeholders.
- Capturing key stakeholder expectation.
- Integrating stakeholder insights into the strategy.
What are the four layers of a strategic analysis?
- Company (e.g. resources, capabilities).
- Competitive arena (e.g. partners, suppliers, customers).
- Industry (e.g. buyer bargaining power, competitive rivalry).
- Marco environment (e.g. political, technological).
What is an essential first step for analysing competitive forces?
Defining the relevant market, so what is the entire market scope, and what is the relevant market?
Why does an increase in market share leads to a low increase in financial performance?
- Global reasons (digitalisation, globalisation).
- Customer-specific reasons (loss of exclusivity, negative network effects).
- Firm-specific reasons (slow processes, being too focused on rivals, motivation problems for market leader).
What are the four common categories used for customer segmentation?
Socio-demographic (gender, income), geographic, psychographic, and behavioural (price sensitivity, consumption patterns).
What are the five key sources of customer heterogeneity?
- Individual differences (a person’s stable way of responding to the environment).
- Life experiences (unique past events shaping current behaviour).
- Functional needs (personal priorities in product features).
- Self-identify/image (buying things that reflect how they see themselves).
- Marketing activities (brand messages and positioning shaping customer perception).
What are the seven elements of the 7S framework used to analyse internal strategic strengths and weaknesses?
- Strategy (is the strategy well understood and future-proof?)
- Structure (does the org structure support the strategy?)
- Systems (are the managerial systems effective?)
- Skills (which unique capabilities give a competitive advantage?)
- Staff (does the firm have the right people and low turnover?)
- Style (what is the leadership style?)
- Shared values (what values are embedded and shared across the firm?)
The five stages of a market research project?
- Problem definition (turn managerial question in RQ).
- Project design (selection/design of relevant data collection/analysis methods).
- Data collection (establishing target population, source of data, sampling procedure).
- Analysis and interpretation (process data to get valuable info through statistical inference and visualisation).
- Decision and actions (use info to develop recommendations for firm).
2nd stage of a market research project: Project Design. What are the 3 types of research projects?
- Exploratory (get general insights, identify decision options, identify important variables, use qualitative survey or ad-hoc survey).
- Descriptive (precise description of a phenomenon, use ad-hoc survey or panel or secondary data collection).
- Causal (identify/quantify presumed relationships/interactions, use ad-hoc survey or panel or experiment).
What are the three categories of marketing-finance variables that affect firm performance, according to Edeling and Fisher?
- Marketing actions (tactical decision such as pricing, ads; visible to investors but impact on performance hard to trace).
- Marketing assets (intangible strengths, e.g. loyalty, that resulted from the relationship between firm and important external stakeholders; less visible but support long-term strategy and value creation).
- Firm performance ~ marketing related (financial outcomes of marketing efforts measured through revenue, stock price, profit).
What is the difference between operational effectiveness and strategic positioning (Porter)?
Operational effectiveness = doing similar activities better than rivals.
Strategic positioning = doing different activities or the same activities in a different way to deliver unique value.
What are stakeholders?
Stakeholders are individuals, groups or institutions that have an interest, claim or stake in the company and can affect or are affected by its decisions and activities.
What is the business case for sustainability, and what are the drivers to integrate sustainability in strategic management?
To “realise economic success through an intelligent design of voluntary environmental and social activities”.
Drivers can be that critical stakeholders are increasingly asking for more sustainable business practices. Now also more companies identify sustainability as a source for gaining a competitive advantage.
What is the productivity frontier?
The productivity frontier shows the maximum value a firm can deliver by increasing efficiency in operational activities. Rivals can quickly imitate these improvements, so operational effectiveness alone does not lead to sustainable competitive advantage.
Firms also need strategic positioning for superior performance.
Economic value & competitive advantage
A firm has a competitive advantage when it creates and captures more economic value derived from the customer value it generates than its rivals.
Accounting performance & competitive advantage
A firm has a competitive advantage when selected profitability ratios from accounting are greater than the industry average.
Shareholder value & competitive advantage
Companies that earn above their cost of capital are realising above normal performance and are generally said to have a competitive advantage.
CSR & competitive advantage
A firm has a competitive advantage when its integrated economic, ecological, and social performance is greater than the one of its rivals or the industry average.
Benefits of global standardization
- Achieve economies of scale.
- Achieve economies of scope.
- Leverage global learning/innovation.
Benefits of local responsiveness/adaptation
- Countries have different tastes, traditions, customs.
- Differences in infrastructure (technical standards, shipping systems etc).
- Government and legal differences.
- Each market has unique competitive dynamics.
What are the five typical organisational levels for which strategies are relevant?
- Corporate strategy, about the general direction of a company.
- Business strategy, e.g. about differentiation or leadership.
- Functional strategy, e.g. about supply chain or HR.
- Regional or country strategy, e.g. about market development.
- Product or service strategy, e.g. about the marketing mix.
