Strategic Options in Hypercompetitive Environment (5) - Answer-1. Global Economy
2. use of price quality positioning to build market presence.
3. creation of new knowledge and use of first-movers advantage.
4. Protection or invasion of stablished geographic or product markets.
5. Technologies
...
Exam 1 WPC 480 Questions with
Complete Solutions
Strategic Options in Hypercompetitive Environment (5) - Answer-1. Global Economy
2. use of price quality positioning to build market presence.
3. creation of new knowledge and use of first-movers advantage.
4. Protection or invasion of stablished geographic or product markets.
5. Technologies
What factors are increasing in the global competitive landscape? (3) - Answer-1. 1.
Market volatility and instability due to rapid pace of change in markets. a)what happens
in 1 place quickly transfer. b) globalized flow of financial capital.
2. Strategic & operational complexity of global-scale competition
3. Expectations of better products and services.
Decreasing factors in global competitive landscape (3) - Answer-1. time to adapt
2. traditional tangible source and competitive adv.
3. traditional managerial mindset
To cope with new marketplace.... - Answer-Firms need strategic FLEXABILITY
Where do firms profits come from? - Answer-1. Industry (external)
2. How hard you work & your skills (internal)
I/O Model - Answer-1. External Environment
2. Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
I/O Model in simple terms - Answer-1. Study the external environment (especially
industry environment)
2. Locate an industry with high potential for above-avg returns
3. Identify strategy called for by attractive industry to earn above-avg returns
4. Develop/aquire skills & assets needed to implement the strategy.
5. Use firms strength to implement the strategy
5 Forces Model of Competition - Answer-1. Suppliers
2. Buyers
3. Industry Rivalry
4. Substitutes
5. Potetial Entrants
, 5 forces model: Try to earn above avg returns by.... - Answer-Cos-Leadership or
Differentiation
Cost-Leadership - Answer-Producing standardized goods or service @ costs below
competitors cost
Differentiation - Answer-Proucing differentiated goods or services for which customers
are willing to pay a price premium
Resource-Based Model - Answer-1. Resources
2. Capabilities
3. Competitive Advantage
4. Attractive Industry
5. Strategy Formulation and Implementation
What drives firm performance?(what doesn't) - Answer-Capabilities drives performance.
NOT Industry
core competencies - Answer-capabilities that serve as a source of competitive
advantage for a firm over its rivals
capability - Answer-an integrated set of resources
Examples of Resorces in Resource-Based Model - Answer-physical, human &
organizational capital (tangible/intangible)
How to capabilities become core competencies? (4) - Answer-1. Rare
2. Valuable
3. Costly to Imitate
4. Non-substitutable
21st Century Competition Todays Competitive Markets (3) - Answer-1. Globalization
2. Higher importance oof knowledge and people
3. Rapid tech growth
Stakeholders - Answer-Can affect firms mission and vision
Are affected by strategic outcomes achieved by the firm
Can have enforcable claims on the firm's performance
Are influenced when in control of critical or valued resources
3 examples of stakeholders - Answer-Captial Market
Product Market
Organizational
Capital Market Stakeholders - Answer-shareholders, major suppliers of capital(banks)
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