Mgt 8803 - Business Strategy Exam

Design factors: Cost Leadership {Ans: -highly efficient -minimum overhead -operational excellence, efficient supply chains, technology, & vendor rationalization -minimal organizational frills -minimum marketing cost -standardized products -low inputs & labor costs}P5F: Ways to mitigate structural impediment to firm profitability... {Ans: *increase product differentiation *diversify product lines *introduce or strengthen switching costs *continually innovate to increase product value *alter bargaining relationships b/w industry competitors and buyers/suppliers *build barriers to entry to keep new competition out *develop complements or build strategic partnerships with complement providers}SCP: Performance {Ans: *profits *value creation *technological progress *shareholder returns *industry performance}SCP: Conduct {Ans: *branding, product differentiation, & price setting *capacity *innovation *operating efficiencies *collusion}Core competencies {Ans: unique capabilities of a firm to enable delivery & support of competitive advantage}Core Values {Ans: guiding principles of firm | support company's vision, shape culture, & reflect company's identity & personality}Diversification: BENEFITS {Ans: *leverage existing capabilities over new markets & potentially increasing economies of scale & scope *pursue new growth & profit opps (esp in mature markets) *spread financial risks over different products & markets *cross-subsidize products &/or operations}Diversification: Influence Costs {Ans: if mgt lacks experience or skill in new line of business,