MGT 3013 -INTRODUCTION Ron
Anderson Questions with Complete
Solutions.
Strategic Controls - Answer 1. Market Share
2. Market Power
Strategy - Answer - firm's theory about how to gain competitive advantage
- figure out how to sustain competitive advantage
- make commitments, decisions, and actions to PROTECT, ENHANCE, and CREATE
Types of Competitive Advantage - Answer 1. Efficiency - cost advantage over competitors
2. Effectiveness - preference for your firm's output to where consumers will pay a premium
Ways to Achieve Competitive Advantage - Answer - Economies of scale
- Economies of scope
- Unique, specialized and valuable assets
- Unique, specialized and valuable operational technologies
- Unique, specialized and valuable relationships
- Brand name recognition
- Brand name loyalty
- Supply channel
- Ability to innovate
Organization - Answer - firm's structure and control mechanisms that must be aligned
- provides ability and incentive to exploit the firm's resources
Balance Sheet - Answer - shows the cash conversion cycle
- assets + liabilities + owner's equity
- assets and liabilities can be short or long-term
- owner's equity becomes long-term assets
Capital - Answer - comes from equity holders as an investment
- retained earnings (last year's profit is this year's capital)
, - incur debt by borrowing
Short-Term Asset Conversions - Answer cash -> supplies -> inventory -> accounts receivable -
> cash
Business-Level Strategies - Answer *focus on transactions*
- only spend cash flows, not capital
- max cash flow ROI
- low cost leadership v. differentiation
Supply Channels from Backward to Forward - Answer Raw Materials -> Manufacture ->
Distribution -> Retail -> Customer
Low-Cost Leadership - Answer - functional structure
- codified work
- central control
- process innovation
- global
Differentiation - Answer - coordinating structure
- employee background
- decentralized control
- product innovations
- multi-domestic
Functional Structure - Answer - separate silos of productivity in the firm
- *specialization of labor*
Coordinating Structure - Differentiation - Answer - departments combine to focus on
customer satisfaction
Codified Work - Low-cost
Leadership - Answer - easy training for employees
- step-by-step instructions
- low skill jobs with a flat learning curve
Anderson Questions with Complete
Solutions.
Strategic Controls - Answer 1. Market Share
2. Market Power
Strategy - Answer - firm's theory about how to gain competitive advantage
- figure out how to sustain competitive advantage
- make commitments, decisions, and actions to PROTECT, ENHANCE, and CREATE
Types of Competitive Advantage - Answer 1. Efficiency - cost advantage over competitors
2. Effectiveness - preference for your firm's output to where consumers will pay a premium
Ways to Achieve Competitive Advantage - Answer - Economies of scale
- Economies of scope
- Unique, specialized and valuable assets
- Unique, specialized and valuable operational technologies
- Unique, specialized and valuable relationships
- Brand name recognition
- Brand name loyalty
- Supply channel
- Ability to innovate
Organization - Answer - firm's structure and control mechanisms that must be aligned
- provides ability and incentive to exploit the firm's resources
Balance Sheet - Answer - shows the cash conversion cycle
- assets + liabilities + owner's equity
- assets and liabilities can be short or long-term
- owner's equity becomes long-term assets
Capital - Answer - comes from equity holders as an investment
- retained earnings (last year's profit is this year's capital)
, - incur debt by borrowing
Short-Term Asset Conversions - Answer cash -> supplies -> inventory -> accounts receivable -
> cash
Business-Level Strategies - Answer *focus on transactions*
- only spend cash flows, not capital
- max cash flow ROI
- low cost leadership v. differentiation
Supply Channels from Backward to Forward - Answer Raw Materials -> Manufacture ->
Distribution -> Retail -> Customer
Low-Cost Leadership - Answer - functional structure
- codified work
- central control
- process innovation
- global
Differentiation - Answer - coordinating structure
- employee background
- decentralized control
- product innovations
- multi-domestic
Functional Structure - Answer - separate silos of productivity in the firm
- *specialization of labor*
Coordinating Structure - Differentiation - Answer - departments combine to focus on
customer satisfaction
Codified Work - Low-cost
Leadership - Answer - easy training for employees
- step-by-step instructions
- low skill jobs with a flat learning curve
