Strategy

Section A

Basic Concepts (10 Multiple Choice Questions) (30% of final mark)

The first part is a multiple choice test. Each multiple choice question has ONE CORRECT answer and THREE INCORRECT answers. For checking one correct answer you get 3 points. Otherwise you get 0 points. You are not allowed to check MORE THAN ONE answers (results in 0 points). Max points in total is 30.

Strategic visions typically answer questions like

[   ] How are we doing?

[   ] Where are we going?

[   ] Why are we here?

[   ] What is coming to us?

Strategic objectives are typically

[   ] Broad and general.

[   ] Specific but intangible.

[   ] Long-term rather than short-term.

[   ] Associated with specific time frames.

The following tools can be used to identify trends in the macro-environment:

[   ] STEEP Analysis.

[   ] Porter’s Five Forces.

[   ] Value Chain Analysis.

[   ] Industry Life Cycle Analysis.

In strategic analysis, key success factors typically are

[   ] Strengths that only the industry leader possesses.

[   ] Speed, resilience, and flexibility.

[   ] Resources and capabilities needed to succeed in a particular industry.

[   ] Strengths that differentiate firms from lead competitors.

In strategic analysis, sustainable competitive advantage refers to

[   ] Being able to outperform others for a long time due to lack of competition.

[   ] Enduring success due to hard-to-imitate combinations of resources and capabilities.

[   ] Having resources or capabilities that are valuable because they are easy to copy.

[   ] Being able to outperform competitors in an environmentally sustainable way.

The product-market growth matrix is used to identify basic growth strategies. These are:

[   ] Any combination of new vs. present clients, and new vs. present regions.

[   ] Any combination of new vs. present markets, and new vs. present clients.

[   ] Market penetration, product development, market development, differentiation.

[   ] Product development, diversification, market penetration, market development.

Reasons why companies diversify typically include…

[   ] Shifting investments to more attractive markets.

[   ] Focusing on core competencies.

[   ] Creating a competitive advantage based on differentiation.

[   ] Exploring new resources and capabilities to create new synergies.

‘Economies of scope’ typically refer to…

[   ] Efficiencies generated by increasing production volumes.

[   ] Efficiencies generated by producing similar types of products.

[   ] Efficiencies generated by using existing resources in different ways.

[   ] Efficiencies generated by combining capabilities from different firms.

According to the ‘Smilie of Value Creation’ by Ram Mudambi…

[   ] Manufacturing is typically a high-value adding process.

[   ] Basic research and branding are typically high-value adding processes.

[   ] High-value adding processes are typically performed in low-cost economies.

[   ] High-value adding processes can be performed in any economy.

In the context of sourcing, offshore outsourcing is an important strategy. It means:

[   ] Companies relocate tasks abroad, using internal or external delivery models.

[   ] Tasks are performed by external providers, either at home or abroad.

[   ] Client firms outsource tasks, but only if they are already performed offshore.

[   ] Tasks are offshored, and clients prefer not to perform them in-house.

Section B

Understanding (Answer 2 out of 3 Questions) (70% of final mark)

Please answer TWO out of THREE questions. There is no one single correct answer. Please use concepts and models we discussed in class to inform your answers. Highest marks are given to the most comprehensive and nuanced discussion of your selected questions.

Question 1 (max. 35 points):

You learn that in Industry X, Firm A has significantly less market share than industry leaders B and C, despite superior product quality, according to recent product tests. What does that tell you about key success factors (KSFs) in that industry? What can Firm A do to increase market share and/or to make better use of their ability to develop products of superior quality?

Question 2 (max. 35 points):

You are developing a new ‘smart jacket’ that can measure body temperature and adjust air circulation to regulate user comfort. You are thinking about partnering with a ‘smart watch’ producer to provide a convenient user interface and to allow customers to manually regulate air circulation. Using Porter’s Five Forces and the ecosystem concept, what are critical factors that may affect the profitability of this idea?

Question 3 (max. 35 points):

Your friend Joe has been awarded the Best Fish & Chips in town in his home town Brighton for the third year in a row. Joe feels quite confident about expanding his Fish & Chips restaurant all over Europe and perhaps even Asia. What would Joe’s success in foreign markets depend on, and to what extent is his success in Brighton an indicator of his success abroad?