Explain the concept of porters generic strategies

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Reference no: EM13878728

STRATEGIC MANAGEMENT

SECTION A

1. "A mission describes what the organization is now; a vision statement describes what the organization would like to become." Differentiate between corporate mission and strategic vision by taking corporate illustrations.

2. Explain the concept of Porter's generic strategies. Discuss cost leadership strategy, differentiation strategy and focus strategy with examples.

3. Discuss basic model of strategic management. Explain four basic elements:

• Environmental scanning
• Strategy formulation
• Strategy implementation
• Evaluation and Control

4. How are the following prepared?
• Strategic advantages profile (SAP).
• Environmental threat opportunity profile (ETOP). Take the case of a bicycle company for discussion.

5. What is value-chain analysis? Consider the components of the value chain. Do any provide the potential to generate competitive advantage?

SECTION B

1. Discuss the nature and scope of corporate management and its role in non-business organisation, giving examples.

2. Discuss Vertical and Horizontal Integrations with examples.

3. The Balanced scorecard is a management system (not only measurement system) that enables organizations to clarify their vision strategy and translate them into action. It provides a clear prescription to as to what companies should measure in order to balance the financial perspective. Following the Balanced Scorecard approach helps:
• Balance financial and non-financial measures
• Balance short and long-term measures
• Balance performance drivers (leading indicators) with outcome measures (lagging indicators)
• Lead to strategic focus and organizational alignment.

Discuss the above statement.

CASE STUDY: ASIAN PAINTS (INDIA) LIMITED

Questions:

(a) What corporate goal has the company adopted for the next few years and with what strategies does the company propose to realise the above goal?

(b) What threats is the company facing or/and might face in future? What has it done and/or what could it further do to safeguard itself from threat(s)?

(d) What action plans has the company proposed to strengthen its product base?

(e) Classify all the strategic plans or proposed strategic actions of the company for achieving growth against suitable headings, e.g., Diversification, Joint Ventures, etc.,

SECTION C

Question 1 It is generally agreed that the role of strategy is to:
a) Make best use of resources
b) Achieve competitive advantage
c) Make profits for the organization
d) Make the best products and services

Question 2 According to Porter (1996) in his article ‘what is strategy?' strategy is about being:
a) Different
b) Better
c) Bigger
d) Open minded

Question 3 An organization's external environment consists of the general or macro environment and:
a) The internal environment
b) The competitive environment
c) The specific environment
d) The micro-environment

Question 4 Alfred Chandler believed that:
a) Strategy should be developed first and the organization tailored to meet the requirements of the strategy
b) Set the strategy according to the organization's strengths and weaknesses
c) Strategy should be allowed to develop incrementally
d) Strategy should be allowed to evolve over time

Question 5 The key activities in the strategic management process are:
a) Analysis, formulation, review
b) Analysis, implementation, review
c) Analysis, formulation, implementation
d) Formulation, analysis, implementation

Question 6 Strategy analysis is also referred to as:
a) SWOT analysis
b) Strategy diagnosis
c) Rational analysis
d) Situation analysis

Question 7 Strategy formulation takes place at two levels. These are:
a) Conscious and sub-conscious
b) Implicit and explicit
c) Corporate and business
d) Business and operational

Question 8 The goals of an organization derive from its:
a) Strategy
b) Purpose
c) Objectives
d) Mission

Question 9 The statement of an organization's aspirations can be found in the organization's:
a) Mission statement
b) Strategic objectives
c) Actions
d) Vision statement

Question 10 Decisions regarding which industries to compete in are the concern of:
a) Business level strategy
b) Corporate level strategy
c) Mergers and acquisitions
d) Functional level strategy

Question 11 Competitive strategy is also known as:
a) Competitive positioning
b) Corporate level strategy
c) Industry strategy
d) Business level strategy

Question 12 In the SWOT analysis, the 'strengths' and 'weaknesses' part refers to:
a) What the organization does internally in relation to competitors
b) The potential level of profits in the industry
c) The quality of the products and services in relation to competitors
d) The potential level of sales in the market

Question 13 A method for imagining alternative, possible futures is known as:
a) Scenario imagining
b) Scenario composition
c) Scenario planning
d) Scenario envisioning

Question 14 The general environment is also referred to as the:
a) Micro-environment
b) Macro-environment
c) Competitive environment
d) External environment

Question 15 The general environment can be broken down using a PEST analysis. Conventionally the PEST analysis consists of:
a) Political, economic, scientific, technological
b) Political, environmental, social, technological
c) Political, economic, social, technical
d) Political, economic, social, technological

Question 16 Competitive rivalry will be high if:
a) The industry is fragmented
b) There are a few strong players in the industry
c) There is a high degree of differentiation
d) The industry is in its infancy

Question 17 A substitute product or service is:
a) A competitor's product or service
b) An alternative way of meeting the same need
c) A new entrant into the industry
d) A less attractive way of meeting the same need

Question 18 Buyer power is high if:
a) Differentiation is low
b) Switching costs are low
c) They have little information
d) The buyer requires a high quality product for their own production

Question 19 In Porter's Five Forces, the 'threat of new entrants' relates to:
a) Barriers to entry
b) Substitutes
c) Switching costs
d) Buyer power

Question 20 The value chain is subdivided into two main headings. These are primary activities and:
a) Peripheral activities
b) Support activities
c) Secondary activities
d) Outsourced activities

Question 21 The decision regarding whether to do manufacturing within the organization or to sub-contract it to someone else is popularly known as:
a) An 'in or out' decision
b) A 'make or buy' decision
c) A 'do-it-yourself' decision
d) A 'vertical-integration' decision

Question 22 WH-Smith the stationer and bookseller has a store on most high streets in the UK. In terms of the SWOT analysis, this could be considered a:
a) Strength
b) Weakness
c) Strength and a weakness
d) Neither strength nor a weakness

Question 23 A market is defined by:
a) Demand conditions and customers
b) Demand conditions and suppliers
c) Supply conditions and production technology
d) Supply conditions and customers

Question 24 Porter's generic strategies are:
a) Low price, differentiation, focus
b) Cost leadership, differentiation, cost focus, focus differentiation
c) Price leadership, differentiation, focus
d) Low cost, differentiation, focus differentiation

Question 25 According to Porter, if an organization does not follow either a cost reduction strategy or a differentiation strategy they are:
a) Hybrid
b) Stuck in the middle
c) Typical
d) No frills

Question 25 In Porter's Generic Strategies model, a focus strategy involves:
a) Selling a limited range of products
b) Selling to a narrow customer segment
c) Selling to one region only
d) Selling simple products that are cheap to produce

Question 26 A differentiation strategy offers:
a) A broad segment something unique
b) A narrow segment something unique
c) A broad segment something more expensive
d) A narrow segment something more expensive

Question 27 Kim and Mauborgne (2005) argue that organizations should try to capture uncontested market space. These uncontested markets are known as:
a) Blue skies
b) Blue oceans
c) White skies
d) Fresh snows

Question 28 In Ansoff's matrix, 'product development' involves going in the direction of:
a) Present products to present markets
b) Present products to new markets
c) New products to present markets
d) New products to new markets

Question 29 Horizontal integration is where:
a) A firm takes over a supplier
b) A firm takes over a distributor
c) A firm takes over a competitor
d) A firm takes over a manufacturer

Question 30 ..................reduces uncertainty
a) Negotiating
b) Planning
c) Organizing
d) Leading

Question 31 ..................are those plans that are extended beyond three years
a) Short-term plans
b) Long-term plans
c) Specific plan
d) Strategic plan

Question 32 Value Chain is an effective tool for¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬..................................
a) External Analysis
b) Internal Analysis
c) Self analysis
d) Systematic analysis

Question 33

The preparation of ETOP involves:

a) Dividing environment into sectors, sub factors, analyze impact of each sector & sub factor on organization, description of impact of each sub factor into a statement which is positive, neutral or negative.

b) Description of impact of each sub factor into a statement which is positive, neutral or negative. , dividing environment into sectors, sub factors, analyze impact of each sector & sub factor on organization

Question 34
Make or buy decision is related with ________strategy

a) Vertical (forward) integration
b) Vertical (backward) integration
c) Horizontal integration
c) Diversification

Question 35
Strategic management is mainly the responsibility of
a) Top Management
b) Senior Management
c) General Management
c) Middle Management

Question 36
A hardware manufacture enters into software is an example of ________integration

a) Vertical (forward) integration
b) Vertical (backward) integration
c) Horizontal integration
c) Diversification

Question 37
True/False
Question: Scheduling is a part of strategic management.
Correct Answer
a) False
b) True

Question 38
Factors to be considered in political- legal environmental scanning are

a) govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure , import-export
b) govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure

Question 39
True/False
Micro environment is the internal environment of a company.
Correct Answer
a) False
b) True

Question 40
Perspective which does not belong to four Balanced Scorecard perspectives is:
a) The Business Process Perspective
b) The Customer Perspective
c) The Learning & Growth Perspective
d) The Business Reengineering Perspective

Reference no: EM13878728

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