Mgt 100 Quiz 2 with complete
solutions graded A+
The Value Chain - correct answer ✔✔
Value Creation Game - correct answer ✔✔Brandenburger & Stuart
Three Competitive Strategies (Porter) - correct answer ✔✔1. Cost Leadership
2. Differentiation
3. Focus
Strategy - correct answer ✔✔A set of principles that guide firm actions and allocate resources
with the goal of gaining and maintaining competitive advantage
Apple Case Study - correct answer ✔✔Original Steve Jobs era: Created apple II, competed with
IBM which used Microsoft and Intel, IBM overtook market share, Macintosh was slow so did not
sell well and Jobs forced out
Sculley Years: Pushed Macs in new markets, plug and play, high-end computers, really high
margins but overpriced compared to competitors, Scully tried a low cost computer, forged
alliance with IBM to create PC operating system, made mac use Intel chips, gross margin
dropped to 34%
Spindler: Killed plan to pit Mac OS on Intel chips and tried licensing out to companies to make
Mac clones, tried slashing costs, got rid of partnership with IBM
, Amelio: Return to premium-price differentiation, Macintosh sales fell and could not produce
new OS, acquired NeXT software run by Jobs, Apple lost $1.6 billion and market share dropped
Jobs: Invested money into Apple, Microsoft Office for Apple, halted licensing program, cut down
product offerings, Cook helped supply-chain
Porter's Five Forces - correct answer ✔✔1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among existing competitors
Threat of New Entrants - correct answer ✔✔The threat is high when:
-Economies of scale are low
-Product is undifferentiated or substitutes are available
-Capital requirements are low
-Incumbents have no control of distribution channels or sources of supplies
-Incumbents have no proprietary knowledge or technology
-Government does not subsidize incumbents, or regulate prices/entry
Power of Buyers - correct answer ✔✔The threat is likely high with at least one of the following:
- Buyers are concentrated and buy in high volume
-Product is undifferentiated and there are available substitutes
-There are no switching costs for buyers
-Buyers can backward integrate
-Product represents a large percentage of buyers' total costs
-Product has little impact on quality of buyers' final product
solutions graded A+
The Value Chain - correct answer ✔✔
Value Creation Game - correct answer ✔✔Brandenburger & Stuart
Three Competitive Strategies (Porter) - correct answer ✔✔1. Cost Leadership
2. Differentiation
3. Focus
Strategy - correct answer ✔✔A set of principles that guide firm actions and allocate resources
with the goal of gaining and maintaining competitive advantage
Apple Case Study - correct answer ✔✔Original Steve Jobs era: Created apple II, competed with
IBM which used Microsoft and Intel, IBM overtook market share, Macintosh was slow so did not
sell well and Jobs forced out
Sculley Years: Pushed Macs in new markets, plug and play, high-end computers, really high
margins but overpriced compared to competitors, Scully tried a low cost computer, forged
alliance with IBM to create PC operating system, made mac use Intel chips, gross margin
dropped to 34%
Spindler: Killed plan to pit Mac OS on Intel chips and tried licensing out to companies to make
Mac clones, tried slashing costs, got rid of partnership with IBM
, Amelio: Return to premium-price differentiation, Macintosh sales fell and could not produce
new OS, acquired NeXT software run by Jobs, Apple lost $1.6 billion and market share dropped
Jobs: Invested money into Apple, Microsoft Office for Apple, halted licensing program, cut down
product offerings, Cook helped supply-chain
Porter's Five Forces - correct answer ✔✔1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among existing competitors
Threat of New Entrants - correct answer ✔✔The threat is high when:
-Economies of scale are low
-Product is undifferentiated or substitutes are available
-Capital requirements are low
-Incumbents have no control of distribution channels or sources of supplies
-Incumbents have no proprietary knowledge or technology
-Government does not subsidize incumbents, or regulate prices/entry
Power of Buyers - correct answer ✔✔The threat is likely high with at least one of the following:
- Buyers are concentrated and buy in high volume
-Product is undifferentiated and there are available substitutes
-There are no switching costs for buyers
-Buyers can backward integrate
-Product represents a large percentage of buyers' total costs
-Product has little impact on quality of buyers' final product
