lectweb winter 2005 now all greens

8/9/2019 Lectweb Winter 2005 Now All Greens

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L O-The Strat. Mgt. Process

Define Strategic Management State similarities

among strat. mgt. models

Reconstruct class strat. mgt. model

Define parts of model

Define fit

Provide example of fit

Define synergy

Provide example of synergy

Define feedback

Provide examples of feedback

Know parts of a SWOT anal. and how to

perform

Know purpose of SWOT analysis


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STRATEGICMANAGEMENT

Definition: The process of

forming and implementing a

mission, strategies, and

objectives to enhance

organizational performance.


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Mission

External

Environment

Internal

Environment

Strategy

&

Objectives

Implementation

D

E

S

I

R

ED

POSS IBLE

STRATEGIC

MANAGEMENT

MODEL

Feedback


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Parts of the Model

Mission- Broad outline of orgs. activity

and business make up. Includes productscope, market scope, & technology.

External Environment -Conditions outsideof the firm.

Internal Environment- Conditions withinthe firm.

Strategy- How an organization attempts toachieve its objectives.

Objectives- Desired results- WhatSPECIFICALLY the organization wants toachieve (goals).

Implementation- All activities associatedwith putting the strategy in place.


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Define Fit

1 part of model is logicallyconnected to other parts


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Provide Example of Fit

Mention and give example ofpart of model for a specific

company (e.g. Strategy).

Mention/give example for

another part for company (e.g.Implementation)

Explain why the two examples

support each other.


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Define synergy

Sum of parts of system produce

greater total when working together

than when working alone.

1+1=3


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Provide Example Synergy

Use real business example

Not ridiculous

Identify distinct parts How much independently

How much together

Why more together


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Define Feedback& Give Example

Define Collection of post implementation

results to enhance future decision

making.

Example State

strategy or objective

result

how affect future decisions


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Parts and Performance of aSWOT Analysis

Identify mission (goals)

Isolate Opportunities and Threats External Conditions

Isolate Strengths and Weaknesses

Internal Conditions

Choose strategies to avoid (or

minimize) W&T and utilize (or

maximize) S & O.

Explain how strategy accomplishes

above.


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Purpose of SWOTAnalysis

Identifying a strategy to achieveyour mission (goals) which

utilizes your strengths and

opportunities and avoids your

weaknesses and threats.


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Revising Comp.Strategy

1) Identify Mission2) Analyze External Environment

3)Analyze Internal Environment

4)List current LT strategy and LT

objectives5) Evaluate Current Strategy

6) Consider new strategies; Type of

strategy

7) Evaluate new strategies

8) Re-evaluate long-term objective.

9) Implement new strategy

a.Consider remaining draw backsstrategy

10) Feedback


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L O-Mission

Define a mission.

Know what a mission includes.

Compare and contrast a missionstatement and a mission.

Know why a mission is needed.

Know what to keep in mind when

designing a mission.

Evaluate a mission.

Define stakeholder.

Know how to reconcile the

conflicting needs of stakeholders.


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What is Mission, What

Includes What is it.

Purpose

Unique

Values of decision makers

Includes

Product scope-Needs satisfied

Market

Technology

Stakeholders

Importance

Claims


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Compare Contrast: Mission

and Mission Statement

Mission

Needed

Communicated in

multiple ways

What is beingsupported.

Few organizations

have.

Content same

Mission Statement

Helpful

Written or Oral

communication

One potential formof support

Many organizations

have.

Content same


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Why Needed

Purpose Screening

Guide

Resource allocation

Strategy

Tone


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Keep in Mind whenDesigning a Mission

Duration Unique

Motivating

Permeate Organization Realistic

Mean it.


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Evaluate a Mission

Make sure to: Include needed parts.

Meet needs.

Keep everything in mind.


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Define Stakeholder

Any group that has a justifiablereason for expecting a firm will

satisfy their claims in a

responsible manner.


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Reconciling the Needsof Stakeholders

Decide importance. Understand specific claims.

Have mission reflect importance

and claims.

Be willing to reassess.

Try not to antagonize any

stakeholder.


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LO: The ExternalEnvironment

Define and distinguish among three levelsof environment.

Understand the need to assess the externalenvironment.

List the five elements within the remoteenvironment.

Define key success factors.

Know errors regarding KSFs.

Define & give example of industryspecific ratios.

List five forces and know the differenceamong the forces.

Define underlying factors.

Know how underlying factors affect thestrength of a force.

Know how to use information from fiveforce analysis to form strategy.

Perform a five force analysis

Know the three types of conclusionsderived from a five force analysis.

Know major point about operatingenvironments.


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Define and Distinguish among the 3

Levels of Environment.

Remote Environment

Industry Environment

Operating Environment

- Economic

- Social- Ecological

- Political

- Technological

Key Success Factors

Industry Specific Ratios

Five Force ModelDriving Forces

Strategic Group

Labor

Creditor

Customers

Suppliers

The Firm


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Define Levels ofEnvironment & Know

Differences Define

Remote Environment: Originatesbeyond, & irrespective of a firmsoperation. Difficult for 1 firm toinfluence.

Industry Environment: Collection offirms offering similar products orservices, & the entities directly relatedto those firms (Includes five forces.)

Operating Environment: Those entitiesthat the specific firms deals with.

Distinguish As one moves from remote to operating

environment: More control

More immediate surroundings

There are fewer participants

Lines between is blurred.


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Remote Environment:Five Elements

Elements

Economic: Disposableincome, inflation, interestrates, etc.

Social: Collective beliefs,values, attitudes, opinions &

lifestyles reflected by society. Political: Taxes, laws, gov. as

customer and competitor.

Technological: Computers,

faxes etc. Ecological: Pollution, fewer

resources.


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Industry Environment:Key Success Factors

Definition Skills, resources, & activities.

Especially important to survival ofalmost all participants in a specificindustry.

Does not assure success.

Relationship to Performance Missing KSF--- Firm Failure

Threshold Level of KSF -- PossibleSurvival

High level -- Survival to superiorperformance.

Sometimes need something more thanKSFs for superior performance


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Manager Errors: KeySuccess Factors

Believe having athreshold level on allKSFs is enough for highperformance.

Below a threshold levelon 1 or more.

Investing (time, effort, $,etc.) in a KSF beyond point of meaningfulreturn.


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Define/Give Example

of Industry SpecificRatio

A ratio especiallyimportant to aspecific industry.

Helps determineprofitability.

Often capturesutilization of

scarce resource.


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Finding A Prom DateMovies

Redwings

Students

at School

Nearby

University

Tuxes,

Dresses

Dates


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Industry Environment:Five Forces

Competitive Rivalry (Sellers)-Other firms within the industry.

Potential Entrants - Companiesformerly not in the industry.

Substitutes - Firms from otherindustries that offer products orservices fulfilling similar needs.

Suppliers - Those companies

who supply the industry withproducts or services.

Buyers - Those companies orindividuals who purchase the

industrys product or service.


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Define UnderlyingFactors

Underlying factors:Conditions thatincrease the power of a

given force. Each force has its own

unique set of

conditions orunderlying factors.

UNDERLYING FACTORS THAT MAKE FORCES STRONGER


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UNDERLYING FACTORS THAT MAKE FORCES STRONGER

Competitive rivalry (jockeying for position) is a powerful force given the following underlying

factors:

1. Many competitors (Compared to other industries)

2. Competitors equal in size and/or very large3. Slow growth in demand

4. High fixed costs

5. Undifferentiated products

6. High exit barriers

Potential entrants are a powerful force given the following underlying factors:

(NOTE: If potential entrants are powerful, it is easier for outsiders to enter the industry. This isfavorable to those not in the industry, but makes the industry less desirable to those participating in it.)

1. The industry has few economies of scales2. Easy access to technology and know-how

3. Little product differentiation (no loyalty)

4. Low capital requirements

5. Few cost disadvantages independent of size

6. Easy access to distribution channels

7. Few government rules that deter entry

Substitute products are a powerful force given the following underlying factors:

1. The price of substitutes is low compared to your industry

2. The benefits are high compared to your industry

3. There are low switching costs when purchasing substitutes

Buyers are a powerful force given the following underlying factors:

1. They purchase in large volume or there are few buyers

2. Your products are undifferentiated

3. Your products represent a significant percentage of a buyer's total costs

4. The buyer is not very profitable5. Quality of your product is not important to buyer

6. Your product does not save buyer money

7. The buyer can integrate backward

Suppliers are a powerful force given the following underlying factors:

1. There are few suppliers -they are more concentrated than your industry

2. The suppliers' product is differentiated

3. Supplier product has few substitutes

4. The supplier can integrate forward


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Using information from fiveforce analysis to form strategy

1. Identify industry (Where in the

distribution chain does it fall). Who are

the suppliers and buyers?2. Identify a strong force (Porters 5 Force

Model) relative to the industry

3. Clearly identify underlying factor that

makes the force strong (If doing as part ofpaper 1, question 1, provide specific

support from the article)

4. Mention the specific firm within the

industry (center box, competitive rivalry)5. State what is being done to contend with

the underlying factor. (If doing as part of

paper 1, question 1, provide specific

support from the article)


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Performing A Five ForceAnalysis

1. Specify industry

2. List all five forces

3. For each force, indicateimportant underlying factors

4. Summarize the strength of eachforce based upon the numberand importance of underlyingfactors.


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Force Im orta t erlyi g

Factors

tre gt

ofForceomp.ivalry

otent.ntr.

ubs

uyer

uppl.

erforming A 5 Force Analysis


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3 Types of Conclusion Derivedfrom 5 Force Analysis

1. Determine the strongest forces

e.g., Competitive Rivalry & NewEntrants

2. Determine which underlying factors aremost important by determining the onesthat have greatest influence on thestrongest forces.

e.g., High fixed costs,

Undifferentiated products.

3. Determine industry attractiveness & comp.riv. based upon strength of forcescombined

e.g., Industry not attractive.Rivalry intense.


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Major Point aboutOperating Environments

General conditions in an

industry (e.g., power of a force

or underlying factors) may

differ from the conditions

within a specific operatingenvironment within the

industry.


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Strategic Group MapShoe Industry

Quality

Low

High

Marketing Expenditure

Low High


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Why Conduct StrategicAnalysis?

Simplifies analysis. Ident. competitors

Finds uncoveredspaces.

Isolates factors that

might hurt/help somegroups more thanothers.


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L O-Internal Environment

Know parts of value chain and how

to conduct a value chain analysis.

Know the definition of a core

competence.

The attributes of a core competence.

Know what makes a strength or

weakness relevant.

Parts of Value Chain


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Parts of Value Chain

Conducting Analysis Parts (In book) Primary activities parallels flow of

goods.

Support activities affect each ofprimary activities

Effectiveness/efficiency in activities

affects profit margin.

Conducting Analysis

Mention one part of value chain

Describe activity as it relates to company

(For support activity, describe how affects

several primary activities).

Specify whether activity differs from

others in industry

Indicate likely affect on profit margin


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Core Competence:Def. & Attributes

Core competence: A companys

skills, capabilities or resources

that serve as a basis for building

a sustainable competitive

advantage. Attributes

Valuable

Rare

Imperfectly imitable


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Define Competitive

Advantage (CA) & Relate toCore Competence

CA: A fairly SUSTAINABLEadvantage over competitors

resulting in above average

performance

Relationship

Strategy SelectionCompetitive

Advantage

Core

Competence


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Define Porters GSs

Differentiation: The product orservice is unique. Appeals to a broad

segment of the market because ofsuperior features or attributes. Maycost more to produce but companycan charge more.

Low cost provider: The product or

service is basic. Appeals to a broadsection of the market. The companyhas a lower cost structure than allrivals.

Focus: Focuses on a narrowcustomer group and differentiates itsoffering based upon the uniqueneeds of that group or is able todevelop a lower cost structure due tounique attributes of that group.

Porters Recommendations


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Regarding GSs

Use just 1 GS

All effortstowards 1 GS.

Zero tradeoffsAvoid stuck in

middle. Occasionally can find win win & advance in more than onestrategic direction

Th R l i hi b


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The Relationship betweenGSs and CA

Passionately pursuing 1 GS ---> CA.

Superior profits

Differentiation -- Higher pricecompensates for higher cost.

Low cost - Same price as competitorbut bigger profit margin or lower pricesame margin per unit but more volumeso greater profits.

Focus -- Either of the above butcharacteristics of segment allows.

Different skills & core competencies Differentiation

Low cost Focus

Relationship

Different

GSs

Competitive

Advantage

Different Core

Competence


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$10 Auction

Playing for real money!!!! If you

are not willing to possibly losemoney do not become involved!!!!!!

Absolutely no talking once biddingbegins. Use hands to indicate bids.

Bidding starts at 50 cents andincreases in increments of50 cents.

You cant bid twice in a row.

The highest bidder will get the $10

but must also give me their bid. The second highest bidder must pay

me what they bid.


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The Relationship betweenGSs and CA

In part, to gain CA

Signal

Retaliate

Resources in one direction

Be only one seriouslycompeting in that way.

Develop unassailable position.


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Best Cost ProviderDef & Relationship to CA

Def: Product or service is not

unique and is notbasic. Represents abetter value than competitiveproducts. Lower price for similarbenefits or same price for more

benefits. Company must have costadvantage over CLOSE compets.This strategy was not mentioned byPorter in his original work.

Book says can lead to CA. Greatermarket share, possible more profitsper unit. What would Porter say? Why?

LO ODI


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LO: ODI

Know advantages anddisadvantages of first moving.

Know factors that makeinnovations harder and easier toadopt.

Be able to do a break-evenanalysis based upon fixed cost,variable costs, and price.

Be able to calculate $ amount ofcustomer benefits in ODI case

ODI


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ODI:

1. What factors about the product and market wouldmake it easier to convince farmers to adopt thelenses. (Think in terms of the nature of the product,generalizations about farmers, etc.)

2. What factors would make it harder to convincefarmers to adopt the lenses? (Objections one mayhave to overcome, nature of the product,generalizations about farmers, etc)

3. Why might it be easier or harder for the market toaccept this product than it would be for market, ingeneral, to accept new products, in general?

4. What are the benefits of being THE FIRST to goahead with the contact lenses. Why would one wantto beat the competition?

5. What are the drawbacks of being THE FIRST? Whywould one choose to wait to introduce the product?

6. Given the assumptions of the case, how manylenses would ODI have to sell in year 1 to breakeven?

7. What specific dollar amount does the farmer gainper chicken per year if they adopt the lenses?

8. Which generic strategy would you follow in year 1?WHY? What specific strategy would you follow?Sell to whom, where, how big a market? WHY?

Test 1


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About 30 to 35 multiple choice questions 60% of test

(About 10 to 15 of which will be on readings)

4 essay questions 40% of test

Learning objectives from READINGS for the first exam.

(To avoid thinking about the wrong article when asked a question on the test, it might be

helpful to be familiar with the names of the articles)

The articles on mission statements make some recommendations regarding who should be

involved in developing a mission statement --- make sure that you are familiar with their

recommendations.

From page 93 and 94, understand the three ways in which a five force analysis might

influence the formulation of strategy. Make sure you have an in-depth understanding of

each way.

What are the four things that lead to sustainability (pages 64-68)? Make sure you

understand each.

Within each primary and support activity there are three activity types that play a different

roll in competitive advantage. (Page 81-82). Be familiar with each.

On pages85

and86

understand what the article means by vertical linkages.

From page 121, know the common required skills and resources and common and the

common organizational requirements for each generic strategy.

On pages 123 and 124 know the risks associated with each generic strategy.

On page 128-129 know the conditions that lead to pure strategies and the conditions that

lead to mixed strategies.

From pages 97 to 107, be able to describe the characteristics associated with each of thecompetitive environments (emerging, high velocity, maturing, stagnating, and fragmented

industries) and strategies for competing in each.

Be able to distinguish between multicountry and global strategies (pages 109 and 110).

Multiple choice questions relating to lectures for the first exam.

Multiple choice questions will relate to the learning objectives.


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Essay Topics For Exam 1

Rules for essays requiring that you come up with a business example:1) The example should notbe something used in class or book;

2) The example should be unique.

Essay question 1

Use a SWOT analysis to determine a strategy to reach a personal goal that is important to you. If you

have done this in advance it can be turned in with the test. Follow the same format used on the sheet

describing Magnum's strategy. Only include 1 opportunity, 1 threat, 1 strength, & 1 weakness.

Essay question 2

Essay question 2 will be about 1 of the items below. (You will learn which at the time of the exam).

For all of the items below, use an actual company or industry in your example. Also to receive full

credit, your example should come from a newspaper, magazine or Internet article which is less then 2

months old. Although the article does not need to use the same terminology that the class used, it

should illustrate the general concept. Feel free to be creative. You will also need to include the

article with your test. DO NOT WRITE (OR TYPE) ON THE ARTICLES prior to the test. Since

you do not know which of the above items will be on the test, to be fully prepared, you need to bring

in articles for each of the items below.

Provide an example of fit.

Provide an example of feedback.

Provide examples of key success factors.

Provide an example of an industry specific ratio.

Provide an example of synergy.

Essay question 3

You will be asked to do a break-even analysis.

Essay question 4 will reflect one of the four items below.

Relate the value chain to an actual company. Be able to identify and explain each part of the value

chain.

Reconstruct the strategic management model developed in class Including being able to give an

example of each part.

Use an example to illustrate the relationship between core competence (Know traits of core

competence according to lecture), strategy and competitive advantage.

Conduct a five force analysis for an actual industry. Be able to mention two underlying factors foreach force and explain how they affect the force.


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Take Home Exam Question.

Conduct a SWOT analysis to determine a strategy to reach whatever personal goal is important

to you. You may not, however, choose for your goal, landing a job, getting a promotion, losing

weight, getting in better shape, or graduating. Only list one opportunity, one threat, one

strength, and one weakness. You will be graded on writing style (which includes how clearly

you label your answer) as well as content. The example below includes the format you should

use to answer the question.

Example: How might Magnum use a SWOT analysis to form a strategy to achieve a personal

goal. Assume Magnum is caught on a dessert island with a 12 foot tall villain who wants to kill

him.

Step 1: List the goal and indicate a strength, weakness, opportunity and threat.

Goal: To continue to live.

Strength: A very good swimmer

Weakness: Magnum's small size

Opportunity: Mainland is 1/4 mile away.

Threat: Villain with a club

Step 2: Choose a strategy

Magnum should swim to shore.

Step 3: Defend your choice by showing how your strategy utilizes or maximizes the importance

of the strength and opportunity and avoids or minimizes the importance of the weakness and

threat.

Swimming to shore utilizes Magnum's superior ability to swim thereby maximizing his strength.Swimming to shore allows Magnum to reach the mainland, thereby maximizing the opportunity

that it is only 1/4 mile away.

Swimming to shore minimizes the importance of Magnum's weakness because being large does

not make one a better swimmer.

Swimming to shore minimizes the importance of the villain's club because he will not able to

hold on to it while swimming after Magnum.

LO: Strategic Treatment ofConclusions from 5 Force


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Conclusions from 5 Force

Analysis

Know why one does a 5 forceanalysis

Know 3 strategies firms canselect to contend with lowindustry profitabilty

Know 3 strategies firms canselect to contend with strongforces

Know 3 strategies firms can

select to contend with importantunderlying factors

Strategic Treatment ofConclusions from 5 Force


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Conclusions from 5 ForceAnalysis

Conclusion: Potentially low industryprofitability Strategic Treatment

Avoid industry

Diversify

Locate profitable operating environment

Conclusion: A strong force is ... Strategic Treatment

Emphasize in planning

Locate operating environment where force is weaker

Develop strength to contend with force

Conclusion: The most imporant underlyingfactor is... Strategic Treatment

Change underlying factor

Develop relevant strength to contend with underlyingfactor

Locate operating environment where underlyingfactor is less important

LO: The Grand Strategies


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LO: The Grand Strategies

Know the difference betweengeneric strategies and grand

strategies. Know which of the grand

strategies are corporate level andwhich are business level.

Know how to define and identify(distinguish between) each of thegrand strategies.

Know some of the advantagesand disadvantages of each of thegrand strategies.


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Difference between Genericand Grand Strategies

Grand strategy more specific.

Generic strategy guides choice

of grand strategy

Grand Strategies: Distinctions, Level,


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& Adv. & Disadv.

Apple develops first micro-computer

3M develops the post -it note pad

Coke acquires bottling facilities (or builds own)

A major oil company moves into retail gas stations

Stu Leonard Dairy Market opens salad bar and startsselling ribs

Pepsi splits from restaurants operations.

Agilent and Hewlett Packard

KFC advertises When did you last have KFC? Havesome today.

Skin so soft sells their skin softener as a bug repellent

GM and Toyota get together to produce the Geo

Kmart and Yahoo launch internet site

Iacocca takes over Chrysler; stops producing larger cars

A cigarette company, Philip Morris buys Miller beer.

A Maine ski resort buys a company that repairs air-conditioners in Florida

Diamler Benz buys Chrysler

Eastern Airlines-Sells shuttle to Trump, routes to Deltaand Continental and planes to other companies.Eventually they close their doors.


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LO: CITA

What general factors lead to the

formation of a new venture? What critical success factors are

important to new ventures

How did the remote environment

influence CITA

What were the differences and

difficulties of dealing with diverse

cultures.

How can several concept be used to

help CITA choose a product line.


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LO: Wendys What were key environmental

considerations in the fast-food industry atthe time Wendy's entered the market?

What was Wendy's earlystrategy/objectives/mission?

Which of Porter's generic strategies wasWendy's following, early in the case?

Evaluate Wendy's early strategy.

What were Wendy's functional strategies?

How did Wendy's functional strategiesrelate to their strategy?

How did functional strategies support eachother?

Why did Wendy's change from it's initialstrategies?


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Implementation Overview Functional strategies

Support Strategy

Support Each Other

7 S

Strategy

Staff Structure

Skills

Systems

Shared values

Style

Institutionalizing the Strategy

Controls


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Paper2. Due on the last day of class.

Find business articles, less than 8 months old, about companies that illustrate the grand

strategies. You need to use one article per strategy. The article does not need to use the

same terminology as the class. Highlight or underline the two sentences in the article that

most clearly reflects the strategy chosen. Although the paper should be understandable even

if someone has not read the article, you still must include the article with your paper. Youwill be graded on writing style, as well as, content. The assignment must be typed. You may

NOT help each other finding articles.

1) Write one or two paragraphs that clearly explains why you think the article illustrates the

strategy you have chosen. Be very specific.

2) As per ourclass discussion, clearly indicate one of the major advantages (i.e., an

advantage mentioned on the overhead) and one of the major disadvantages (i.e., a

disadvantage mentioned on the overhead) typical of that strategy.

3) Explain how the advantage and disadvantage apply to your example. Be very specific.

Normal Assignment: If you turn in 11 of the grand strategies, you may earn up to a

maximum of40/40 point

Reduced Assignment: If you turn in 7 of the grand strategies, you may earn up to a

maximum of30/40 points.

Do not count combination strategies as one of the grand strategies!

TEST 2:

KNOW LEARNING OBJECTIVES FROM CLASS LECTURES SINCE THE MID-


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TERM.

About 30 multiple choice questions 60% of test (90 pts)(About 8 will be from readings,

19 on lecture material since the last exam and 3

questions from pages 97 to 107 (Be able to

describe the characteristics associated with

each of the competitive environments

(emerging, high velocity, maturing,

stagnating, and fragmented industries)

and strategies for competing in each).

4 essay questions 40% of test (60pts)

Essay Question 1: There will be one essay question on one of the topics below.

A) Apply the three tests of a diversification move. Use a real company in your example

(although, the company does not actually have to be diversifying). Your example should be

unique. What outcome is needed for the test to suggest that the move will enhance

shareholder value. Your answer should clearly indicate that you understand what each of

the tests of diversification is. Your answer should be at most 7 seven sentences.

B) Give two examples from the Wendys case illustrating how functional strategies

supported business level strategies and two examples of how strategies from different

functional areas supported each other.

C) Using concepts from the lecture build a case that CITA should pursue the glazed

mosaics. Find at least one reason why you would not blindly follow the analysis!

Essay Question 2: The instructor mentioned several policies that might lead him to

achieving his goal of having members of his entrepreneurship class who are not members of

a specific group provide feedback to other groups in the class on that group's project.A) What ONE change could lead the instructor to achieve this goal. Justify your answer

and make sure your answer relates to the seven "S" model. This answer should be no more

than two sentences max.

B) I will ask how you might adjust or change an S to help achieve the instructor's goal. I

will specify which S during the exam. Make sure your answer clearly indicates that you

understand the definition of the S. Your answer to part B does necessarily imply that this is

the only change that you would make.

TEST 2 Continued:


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Essay Question 3: To successfully implement a strategy, all aspects of the company and

the company's environment should "fit" together. Collectively, the Rothchilde article andthe Deshpande article suggest that BCG quadrants (e.g., dog, cash cow, question mark or

star), type of leaders, cultures, strategies, and industry lifecycle stages should all fit together

(see attached sheet). For the exam be ready to justify the articles choices of how specific

types of leaders, cultures, strategies, industry lifecycle stages and quadrants fit together -- I

will specify which quadrant at the time of the exam. This question MAY be open note.

Your answer should be no more than 7 sentences max.

Essay Question 4: This question will require that you use the "Competitive Advantage to

Corporate Strategy" and the "Corporate Strategy: Quest for Parenting Advantage" articles to

analyze B&D's diversification strategies. The specific question(s) will be a subsection ofthe questions asked on the handout on B&D (See next page). Also see the handout for more

specific grading criteria. This question(s) MAY be open note. You will have a total of one

half hour to answer essay questions 3 and 4.

Multiple Choice Questions from Readings:

Be able to define each of the concepts of corporate strategy and know in general how

effective the article thinks each of the strategies usually is. (page 157 to page 166).

Know what managers' biggest mistakes are when diversifying according to page 179.

Know the questions one should ask when assessing a business strategy (page 182).

Know entire reading on Designing Organizational Structure (Beginning on page 532)

Other multiple choice questions from the readings will relate to issues studied in

preparation for the essay questions.


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LO: Seven Ss

Be able to define each S

Be able to give an example of

each S

Understand Major Points of7 S

Model

Define & Example of7 S

Strategy-The plan to achieve


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Strategy-The plan to achieve

objectives, mission --- How?

Staff - People

Hard --Pay Scales, Formal

training, Selection, Etc Soft--Morale, Attitudes

Structure-- How to divide and

coordinate tasks

Skills--What firm does best

Systems--Formal and informal

procedures that make org go

Shared values-Culture-Beliefs,

Traditions, and Operating style.

Style-Top level- Leadership.

LO: Staff Structure &


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LO: Staff, Structure &

Skills What are elements of staff

Relate staff to a companys

strategy

What are elements of structure

Know the three rules of

structure

Relate structure to a companys

strategy

Relate skills to concepts in priorparts of course.

Relate skills to a companys

strategy

LO: Systems, Shared

Values, & Style


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, y

Types of systems

Types of reward systems & major

message

Relate systems to a companysstrategy

Know the importance of shared

values (Culture)

How to identify shared values

How to manage culture

Relate shared values to a companys

strategy

Why listen?

Relate style to a companys strategy

Shared Values


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Importance

very --- esp to implim.

How identified

Shared stories

Org winners

How to manage culture

Set example Get dominant core

Relate culture to strategy

lectweb winter 2005 now all greens

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