MGT 8803 CORRECT SETS ANSWERS AND
QUESTIONS SET A+
- ✔✔creates value & supports product/service post-sales | focus on business ops | core
competencies | resources required for activities/capabilities | strategic resources
✔✔Strategic resources - ✔✔assets of the firm (tangible, intangible) that are important to
a firm's competitive advantage
✔✔Core competencies - ✔✔unique capabilities of a firm to enable delivery & support of
competitive advantage
✔✔Key activities - ✔✔most important things the business does to be successful
✔✔Value Capture - ✔✔expenses, revenues, capital requirements, cost structure
✔✔Revenue models - ✔✔retail | transaction | rental/lease | usage | advertising &
sponsorships | affiliate marketing | brokerage | subscription/membership | licensing
✔✔Technology-fueled NEW Revenue Models - ✔✔data driven (ex: FB, LinkedIn) & e-
commerce:
*sharing economy (AirBNB)
*aggregators
*virtual goods
*in-app purchases
*group buying
*crowd sourcing (Kickstart)
*auction (eBay)
*long-tailed product assortments (Amazon, Netflix)
✔✔Design factors: Cost Leadership - ✔✔-highly efficient
-minimum overhead
-operational excellence, efficient supply chains, technology, & vendor rationalization
-minimal organizational frills
, -minimum marketing cost
-standardized products
-low inputs & labor costs
✔✔Examples: Cost Leadership - ✔✔SWA
Timex
Aldi
McDonald's
Wal-Mart
Dollar Stores
Zara
Acer
✔✔Design factors: Differentiation - ✔✔-higher quality products
-innovative design
-technological capability
-high cost inputs
-customer experience
-emphasis on R&D
-high marketing cost
-extraordinary customer service
✔✔Examples: Differentiation - ✔✔Zappos
BMW
Whole Foods
Coca-Cola
Hilton
Dillard's
Tommy Bahama
LA Fitness
✔✔Design factors: Focus - ✔✔-either cost leadership OR differentiation
-cost leadership harder to achieve due to smaller economies of scale and purchasing
volume
-must provide something "extra"
✔✔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
QUESTIONS SET A+
- ✔✔creates value & supports product/service post-sales | focus on business ops | core
competencies | resources required for activities/capabilities | strategic resources
✔✔Strategic resources - ✔✔assets of the firm (tangible, intangible) that are important to
a firm's competitive advantage
✔✔Core competencies - ✔✔unique capabilities of a firm to enable delivery & support of
competitive advantage
✔✔Key activities - ✔✔most important things the business does to be successful
✔✔Value Capture - ✔✔expenses, revenues, capital requirements, cost structure
✔✔Revenue models - ✔✔retail | transaction | rental/lease | usage | advertising &
sponsorships | affiliate marketing | brokerage | subscription/membership | licensing
✔✔Technology-fueled NEW Revenue Models - ✔✔data driven (ex: FB, LinkedIn) & e-
commerce:
*sharing economy (AirBNB)
*aggregators
*virtual goods
*in-app purchases
*group buying
*crowd sourcing (Kickstart)
*auction (eBay)
*long-tailed product assortments (Amazon, Netflix)
✔✔Design factors: Cost Leadership - ✔✔-highly efficient
-minimum overhead
-operational excellence, efficient supply chains, technology, & vendor rationalization
-minimal organizational frills
, -minimum marketing cost
-standardized products
-low inputs & labor costs
✔✔Examples: Cost Leadership - ✔✔SWA
Timex
Aldi
McDonald's
Wal-Mart
Dollar Stores
Zara
Acer
✔✔Design factors: Differentiation - ✔✔-higher quality products
-innovative design
-technological capability
-high cost inputs
-customer experience
-emphasis on R&D
-high marketing cost
-extraordinary customer service
✔✔Examples: Differentiation - ✔✔Zappos
BMW
Whole Foods
Coca-Cola
Hilton
Dillard's
Tommy Bahama
LA Fitness
✔✔Design factors: Focus - ✔✔-either cost leadership OR differentiation
-cost leadership harder to achieve due to smaller economies of scale and purchasing
volume
-must provide something "extra"
✔✔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
