MGT 8803 FINAL EXAM ACTUAL QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Examples: Focus - ✔✔Rolls Royce
Neiman Marcus
Louis Vuitton
Lefty's
Harley Davidson
Ritz Carlton
✔✔AFI Framework - ✔✔Analysis - Formulate - Implement
*traditional top-down approach
*predictable, stable environments
✔✔External Analysis - ✔✔environmental trends & actions of industry players that
impact the firm's markets & operations
✔✔Internal Analysis - ✔✔analyzes the firm's resources & business model and fit to the
evolving environmental conditions & competitor strategies
*SWOT, benchmarking, ratio
✔✔SWOT - ✔✔Strengths - Weaknesses - Opportunities - Threats
*internal analysis
✔✔Formulate (AFI) Strategies - ✔✔*metrics & controls processes identified for
assessing strategy implementation & effectiveness
*specific initiatives organized into programs or projects
*discrete activities focused on acquiring or disposing of capabilities, technology,
components, culture, etc
✔✔Implement (AFI) Strategies - ✔✔*strategy constantly communicated throughout
organization
*funding & resources approved & mobilized
*performance of plans is measured & reviewed & corrected
✔✔Level 1 Uncertainty - ✔✔*typically stable environment or mature industry
*fits with traditional approach to strategy
✔✔Level 2 Uncertainty - ✔✔*usually choice between 2 futures with catalyst being
regulatory or political action, shift in economy, or specific course of action by competitor
*very common business situation
✔✔Level 3 Uncertainty - ✔✔*limited number of key variables define the range of likely
outcomes
*typically related to macro-forces (economy, technology, socio-cultural change)
, ✔✔Level 4 Uncertainty - ✔✔*true ambiguity; rare
*emergence of an industry or where there are a number of variables that can interact in
unpredictable ways
✔✔Scenario Planning - ✔✔*unpredictable (level 2/3)
*set planning scope
*identify or confirm key factors that will shape future business environment
*select 2-3 key variables & develop range of possible outcomes ("plausible futures"),
2x2 scenario matrix
*teams flesh out each plausible future
*develop contingency plans
✔✔Strategy as Planned Emergence - ✔✔*strategies cannot be planned; they emerge
from a set of actions or behaviors consistent over time
*example: IKEA
✔✔Strategy misconceptions - ✔✔1. hope is NOT a strategy
2. strategy is NOT a secret
3. goal is NOT a strategy
4. strategy is NOT operations improvement
✔✔Porter's Generic Positioning Strategies - ✔✔*Cost Leadership (broad)
*Focus Cost Leadership (narrow/niche)
*Differentiation (broad)
*Focus Differentiation (narrow/niche)
✔✔McDonald's industries... - ✔✔*fast food
*franchising
*wholesale distribution
*real estate
✔✔Strategic group - ✔✔very similar business models, rivalry more intense
✔✔More likely to drive sustainable competitive advantage... - ✔✔INTANGIBLE
ASSETS
✔✔Concentration ratio - ✔✔measure of aggregate market shares of the top competitors
in an industry
✔✔Social Media PESTEL - ✔✔Political: increasing scrutiny b/c free speech & fake
news
Economic: rapid growth, primary income from ads
Socio-cultural: divisive, bombarded w/ ads
Technological: new technologies, regulatory scrutiny (ie, facial recognition)
SOLUTIONS GRADED A+
✔✔Examples: Focus - ✔✔Rolls Royce
Neiman Marcus
Louis Vuitton
Lefty's
Harley Davidson
Ritz Carlton
✔✔AFI Framework - ✔✔Analysis - Formulate - Implement
*traditional top-down approach
*predictable, stable environments
✔✔External Analysis - ✔✔environmental trends & actions of industry players that
impact the firm's markets & operations
✔✔Internal Analysis - ✔✔analyzes the firm's resources & business model and fit to the
evolving environmental conditions & competitor strategies
*SWOT, benchmarking, ratio
✔✔SWOT - ✔✔Strengths - Weaknesses - Opportunities - Threats
*internal analysis
✔✔Formulate (AFI) Strategies - ✔✔*metrics & controls processes identified for
assessing strategy implementation & effectiveness
*specific initiatives organized into programs or projects
*discrete activities focused on acquiring or disposing of capabilities, technology,
components, culture, etc
✔✔Implement (AFI) Strategies - ✔✔*strategy constantly communicated throughout
organization
*funding & resources approved & mobilized
*performance of plans is measured & reviewed & corrected
✔✔Level 1 Uncertainty - ✔✔*typically stable environment or mature industry
*fits with traditional approach to strategy
✔✔Level 2 Uncertainty - ✔✔*usually choice between 2 futures with catalyst being
regulatory or political action, shift in economy, or specific course of action by competitor
*very common business situation
✔✔Level 3 Uncertainty - ✔✔*limited number of key variables define the range of likely
outcomes
*typically related to macro-forces (economy, technology, socio-cultural change)
, ✔✔Level 4 Uncertainty - ✔✔*true ambiguity; rare
*emergence of an industry or where there are a number of variables that can interact in
unpredictable ways
✔✔Scenario Planning - ✔✔*unpredictable (level 2/3)
*set planning scope
*identify or confirm key factors that will shape future business environment
*select 2-3 key variables & develop range of possible outcomes ("plausible futures"),
2x2 scenario matrix
*teams flesh out each plausible future
*develop contingency plans
✔✔Strategy as Planned Emergence - ✔✔*strategies cannot be planned; they emerge
from a set of actions or behaviors consistent over time
*example: IKEA
✔✔Strategy misconceptions - ✔✔1. hope is NOT a strategy
2. strategy is NOT a secret
3. goal is NOT a strategy
4. strategy is NOT operations improvement
✔✔Porter's Generic Positioning Strategies - ✔✔*Cost Leadership (broad)
*Focus Cost Leadership (narrow/niche)
*Differentiation (broad)
*Focus Differentiation (narrow/niche)
✔✔McDonald's industries... - ✔✔*fast food
*franchising
*wholesale distribution
*real estate
✔✔Strategic group - ✔✔very similar business models, rivalry more intense
✔✔More likely to drive sustainable competitive advantage... - ✔✔INTANGIBLE
ASSETS
✔✔Concentration ratio - ✔✔measure of aggregate market shares of the top competitors
in an industry
✔✔Social Media PESTEL - ✔✔Political: increasing scrutiny b/c free speech & fake
news
Economic: rapid growth, primary income from ads
Socio-cultural: divisive, bombarded w/ ads
Technological: new technologies, regulatory scrutiny (ie, facial recognition)
