STRATEGY MANAGEMENT
Describe three types of competitive advantage
Cost Structure refer to how company allocates its resources and expenses to achieves cost leadership. (Think of the cost structure as a "Building Blueprints"
1) Foundation (Fixed Cost)
2)Variable Cost (Brick and Mortar)
3)Economies of Scale (Building Efficiency)
(Think of "Product Quality" as a "Quality Quilt".)
1) Fabric [ High Standard ]
2) Striching [ Attention to Detail ]
3) Warmth [ Customer Satisfaction ]
(Think of "Branding" as "Brand Beacon".)
1)Identify [ Beacon Light ]
2)Consistency [ Steady Beam ]
3) Emotion [ Warm Glow ]
Provide four reason illustrating the importance of competitive advantage
Importance of Competitive Advantage as "KEYS"
1) K : Keep customer = competitive advantage retains customer by offering the something unique or better than competitors.
2) E : Enhance Profit = It boost profitability by allowing companies to charge higher prices or lower cost, increasing margins.
3) Y : Yeilds Growth : Competitive advantages drive business growth by attracting more customers and expanding market share.
4) S : Sustains Success : It helps companies stay a head of competitors and maintain succes over the long-term
What are five key aspect that a well-crafted mission statements primarly emphaze according vern Ginnis
Remember "Vern Ginnis" as "H-POWER"
1) H : Highlighting Purpose = Clearly states the purpose or reason for the organization's existance.
2) P : Promoting Values = Communicating the core values and beliefs that guide the organization's actions.
3) O : Outlining Objectives = Sets out specific goals and objectives that the organization aims to achieve.
4) W : = What we do = Describe the products, services, or activities the organization's provides or engage in.
5) E : Engaging Employees : Motivates and Inspired employee by providing a sense of direction and meaning to their work.
List five benefits of having mission and vision
1) Guidance
2) Alignment
3) Motivation
4) Differentiation
5) Long-term Focus
Define a merger and give two real-world example of companies that applied this strategy
A merger is when two companies combine to form a single entity
An example would be the merger between Disney and Pixar, Where Disney acquired Pixar in 2006, Another example is merger between Exxon and Mobil in 1999, Forming ExxonMobil, one of the largest oil companies in the world
Explain three integration strategies used by business in combine their operation and improve competitiveness
1) Vertical Integration: This strategy involves merging or acquiring companies that are part of the same supply chain. For example, a car manufacturer might acquire a tire company or a steel mill. By controlling more stages of production, companies can reduce costs, improve efficiency, and have more control over quality.
2. Horizontal Integration: This strategy involves merging or acquiring companies that operate in the same industry or offer similar products or services. For instance, a software company might acquire a competitor to expand its market share or eliminate competition.
Horizontal integration allows companies to increase their market power, access new customers, and benefit from economies of scale.
3. Conglomerate Integration: This strategy involves merging or acquiring companies that operate in unrelated industries. For example, a conglomerate might own businesses in retail, telecommunications, and hospitality.
Conglomerate integration diversifies risk by spreading investments across different sectors and can provide opportunities for cross-selling products or sharing resources and expertise.
Briefly explain three key components strategy that leader should prioritize
1. Vision and Mission: Leaders should define a clear vision and mission statement for the
company, outlining its long-term goals and purpose. This provides direction and aligns everyone in the organization towards a common objective.
2. Market Analysis: Leaders should conduct thorough market analysis to understand the competitive landscape, customer needs, and industry trends. This enables informed decision-making and helps identify opportunities for growth and innovation.
3. Resource Allocation: Leaders should effectively allocate resources, including capital, talent, and time, to support strategic initiatives and achieve business objectives. Prioritizing resource allocation ensures that the company invests in areas that will drive sustainable
growth and competitive advantage.
Give four aspects of the strategy's implementation.
1)Clear Goals and Objectives
2)Effective Communications
3)Resources Allocation
4)Monitoring and Feedback
Clarify 5 function of management
1) Planning - set goal and decide how to achieve
2) Organizing - arrange resources and taks effeciency
3) Leading - motivate and guide employee towards goals
4) Controlling - monitoring progress and take corrective actions
5) Staffing - ensuring teamworks and harmony in operations
Discuss 5 steprequired to develop this strategy
1. Research: Understand customer needs and preferences, market trends, and competitor offerings to identify areas for differentiation.
2. Innovate: Develop unique features, designs, or services that set your product or service apart from competitors.
3. Communicate: Clearly convey the unique value proposition to customers through marketing and branding efforts.
4. Deliver Quality: Ensure consistent quality in product or service delivery to reinforce the differentiation.
5. Feedback Loop: Continuously gather feeback from customer to refine and improve the differentiation offering over time.
Briefly explain 5 reasons why companies choose to expandinto foreign market.
1. Market Growth: Access to larger customer bases and emerging markets can drive revenue growth.
2. Diversification: Spreading operations across multiple markets reduces risk and dependence on a single market.
3. Competitive Advantage: Expanding internationally can help companies gain a competitive edge by accessing new technologies, resources, or talent.
4. Economies of Scale: Increased production volumes and efficiencies in foreign markets can lead to cost savings.
5. Strategic Alliances: Partnering with foreign firms can provide access to local knowledge, distribution channels, or regulatory expertise.
Discuss 5 strategy approaches for entering and thriving in global market.
1. Exporting: Selling products or services to foreign markets directly from the home country.
It's like sending goods across borders.
2. Licensing and Franchising: Allowing foreign entities to use your brand, products, or intellectual property for a fee. It's like renting out your business model.
3. Joint Ventures: Partnering with local companies in foreign markets to share resources, risks, and expertise. It's like teaming up to conquer new territories.
4. Foreign Direct Investment (FDI): Establishing wholly-owned subsidiaries or facilities in foreign countries to control operations directly. It's like setting up your own shop in a new neighborhood.
5. Global Strategic Alliances: Forming partnerships with foreign firms to collaborate on specific projects or share resources and knowledge. It's like joining forces with allies to achieve common goals.