strategy

Question 1

three ways to define strategy

Answer 1

chandler: objectives and goals
porter: unique mix of values
mintzberg: pattern in stream of decisions

Question 2

what is strategy general

Answer 2

long term direction of orga
process od outcome 
horizon one: extend and defend core business 
horizon two: emerge new business
horizon three: create value options

Question 3

mintzbergs 5 Ps

Answer 3

plan (plan in advance)
ploy ( specific manoevre to outwit competitor)
pattern (reallife strategy what cjsnges in execution)
position (choose important view)
perspective (divide organisation in internal and external)

Question 4

levels of strategy

Answer 4

coporation-what business are we in what scope
business - how do we compete
operational - how do we support our business strategies

Question 5

external analysis parts

Answer 5

pestel do divide organisations environment
five forces for market attractivness
for competitors strategic groups, segments
for organisation strategic capabilities

Question 6

pestel

Answer 6

politcal (government constraints, trade restriction, taxation)
ecological (climate change)
social (culture, norms, attitudes)
technology (innovation, infrastructure)
economic (unemployment rates, interest rates, personell income, growth rates)
legal

Question 7

five forces categories

Answer 7

threat of new entrants
threat of substitutes
bargaining power of supplier
bargaining power of buyer

Question 8

threat of new entrants

Answer 8

undifferentiated product
customer loyality and switching costs
economy of scale and network effects
distribution channel access
capital requirments

Question 9

threat of substitute

Answer 9

low switching costs

adequate price performance ratio

Question 10

bargaining power of supplier

Answer 10

low concentration
highly differentiated product
few subsitutes

Question 11

bargaining power of buyer

Answer 11

low buyer concentration
many substitutes
loe switching costs

Question 12

rivalry (fice forces)

Answer 12

high when low market growth
many competitors
high exit barriers

Question 13

issues of five forces

Answer 13

difficult to define market with overlapping or complementory markets

Question 14

industry life cycle

Answer 14

developement: low rivalry, high growth, weak buyers
growth: low rivalry some entry barriers
shake out: increasing rivalry, slower growth, sole exists
majurity: low growth, high entrance barrier, standard products
decline: no growth, exits and price competition

Question 15

relevant market

Answer 15

narrow for tacticsl decisions like marekt share

broad for strategic decisions to discover market segments with growth opportunities or possible new entrants

Question 16

relevent market competitor and customer defined

Answer 16

competitor defined:
production costs, technology, distribution channels
customer defined:
customers needs, substitutes

Question 17

strategic groups

Answer 17

resource based:
quality and effort 
scope based:
product range and geographical scope 
according to strategic behaviour

Question 18

steps of strategic groups

Answer 18

1. select companies
2. determine criteria
3. form groups
4. select companies

Question 19

internal analysis

Answer 19

strategic capabilties 
vrio 
supply chain analysis
strategic priority analysis
competitive advantage 
swot

Question 20

strategic capabilities

Answer 20

resources thst company owns

competencies to use those

Question 21

vrio

Answer 21

value
rarity
inimitability
organisational support

Question 22

value chain

Answer 22

primary activities: in and outbound logistics, marketing, services, operations
secondary: hr, technology, infrastructure

Question 23

strategic priority analysis

Answer 23

see how much budget into activity how important is activity for strategy
how does it perform

Question 24

identifying competitive advantage

Answer 24

1. what do better
2. what is the source for this advantage
3. are these activities vrio

Question 25

swot

Answer 25

combination of strength and weaknesses from internal analysis and opportunities and threats from external analysis

Question 26

market vs resource based view

Answer 26

market:
assess market
select market
strategy formulation 
deploy needed resources

resource based:
strength and weaknesses
identify competitive advantage and industry where you are rewarded for it
identify competitive advantage you need in that industry
strategy formulation

Question 27

strategic taxonomies

Answer 27

economy of scale
economy of scope
experience curve

Question 28

economies of scale

Answer 28

the bigger production volume the cheaper production 
through:
-cost spreading
-specialisation of labour and technology
-increasing bargaining power

Question 29

diseconomies of scale

Answer 29

• physical limitations (increases machine breakdown)
• specialisation demotivates workers
• increases distance to market
• managerial diseconomies

Question 30

economie of scope

Answer 30

production of product A supports production of product B
—syergies between business units
-share resources
-pool negotiation power
-coordinate strategies

Question 31

experience curve

Answer 31

with each doubling in production volume the unit price decreases of 15%
-learning effect in labour
-economies of scale
-technology improvement 
impact on strategic management:
-cost advantages
-increase market share and ROI

Question 32

generic strategies

Answer 32

cost leader
cost focus
differentiator
differentiation focus

Question 33

cost leader and cost focus

Answer 33

leader:
low costs, target whole market, increase market share for economies of scale
mistake:
focus to much on costs and not market changes

focus:
only target one segment

Question 34

differentiator vs differentiation focus

Answer 34

high degree of differentiation focus on whole market, no economies of scale or scope, focus on innovation an price premium
problem: customers do not value uniqueness and do not pay

focus:
only one wegment, understand high purchasing power

Question 35

ansoff matrix

Answer 35

-market penetration:
old product increase market share by convincing customer to higher frequency of use or quantity of product
-new products:
product innovation, improvment or product line extension, old market, cross selling
-market developement
new geogrpahical market with old product
-conglomerate diversification
new market and new product rather related or unrelated to old market, economies of scope for related market

Question 36

corporate rationals

Answer 36

portfolio manager: focus downwards, invest into business units
synergie manager: across, share strategy and production plants
parental developer: downwards, do not share but hand down parental competencies

Question 37

bcg matrix

Answer 37

market share and market growth
cash cow: high share low growth (further liquidity)
stars: high share high growth (invest)
dogs: low share low growth (withdraw products)
question marks: high growth low share (high investment)

Question 38

mckinsey portfolio

Answer 38

9 variables on two axes
market attractivness
-market quality 
-competition intensity
-entry barriers
-raw material 
-environmental situation 
-market growth
competitve position
-market position
-quality of employees
-quality of systems 
-production potential
-r and d potential