MGMT 4513 - Exam 1 || A+ Graded Already.
External Environment correct answers SWOT Analysis, Porters 5 Forces, The General
Environment
New legislation passed nationwide and the minimum wage for hourly workers to $16 per hour. Is
this a threat or opportunity to Wendys? Why? correct answers THREAT
It raises the price of key suppliers (labor) and since Wendy's competes on a low cost strategy,
which is based on its ability to keep its own costs down this will impact the viability of its
current strategy
Supplier power is one of Porters 5 Forces. Think about Wendys suppliers. How much supplier
power do these suppliers have? What factors would increase supplier power? correct answers -
medium to lower supplier power
-factors that increase supplier power are: limited number of suppliers, product quality is affected
by the quality of supply, suppliers have many different buyers
Threat of substitutes is another of Porters 5 Forces. How high is the threat of substitutes in the
fast food industry? correct answers HIGH
- lots of comparable substitute products like being able to cook from...?
Internal Environment correct answers Value Chain Analysis, SWOT, Resource Based View
(RBV)
Value Chain Analysis correct answers - looks at the sequential process of value creating
activities:
- value is the amount buyers are willing to pay for what a firm provides
- how is value created within the organization?
- how is value created for other organizations in the overall supply chain distribution channel?
- the value received must exceed the costs of production
- managers MUST NOT ignore the important of interrelationships among value chain activities
(within the firm and between firms)
- expand the value chain by exchanging resources
primary activités (contribute to the physical creation of the product or service; the sale and
transfer to buyer; and service after the sale: inbound logistics, operations, outbound logistics,
marketing and sales, service
support activities (either add value by themselves or add value through important relationships
with both primary activities and other support activities: procurement, tech development, HR
management, general admin
inbound (primary)- receiving, storing and distributing inputs
operations (primary) - transforming inputs in to the final product
outbound logistics (primary)- collecting, storing, and distributing the product or service to buyers
, marketing and sales (primary) - purchases of products and services by end users and includes
how to induce buyers to make those purchases
service (primary)- all actions associated with providing service to enhance or maintain the value
of a product
procurement (support) - how the firm purchases inputs used in its value chain
tech development (support) - R&D for product and process, collaborative relationships between
R&D and other departments, facilities and equip
HR mgmt (support) - recruiting, hiring, training and development and compensation of all types
of personnel
general admin (support) - overall goals and obj, relations and diverse stakehold
SWOT correct answers benefits:
-IDs which resources MAY = competitive advantage
-IDs areas that need to be cultivated
-simple and effective tool
limits:
- strengths don't always = competitive advantage
- static tool
- overemphasizes a single dimension of strategy
Resource Based View (RBV) correct answers - integrates 2 perspectives: an internal analysis of
phenomena within a company, and an external analysis of the industry and its competitive
environment
- resources can lead to a competitive advantage if: they are valuable, rare or hard to duplicate,
they are combined and making it hard to substitute for or duplicate
- firm resources must have 4 attributes to have a sustainable competitive advantage: VRIN
(Valuable, Rare, Inimitable, Non Substitutable)
Sources of inimitability:
- physical uniqueness
- path dependency(hard to duplicate bc of all that has happened along the path followed in the
development and/or accumulation of resources)
-causal ambiguity (impossible to explain what caused a resource to exist or how to recreate it)
- social complexity (resources that result from social engineering such as interpersonal relations,
culture)
Think about Netflix before they started streaming. Where would you classify these in the value
chain?
1 - Mailing the DVD to the customer
2 - hiring general employees
3 - advertising campaigns correct answers 1 - outbound logistics (primary)
2 - Human Resources (support)
3 - sales and marketing (primary)
External Environment correct answers SWOT Analysis, Porters 5 Forces, The General
Environment
New legislation passed nationwide and the minimum wage for hourly workers to $16 per hour. Is
this a threat or opportunity to Wendys? Why? correct answers THREAT
It raises the price of key suppliers (labor) and since Wendy's competes on a low cost strategy,
which is based on its ability to keep its own costs down this will impact the viability of its
current strategy
Supplier power is one of Porters 5 Forces. Think about Wendys suppliers. How much supplier
power do these suppliers have? What factors would increase supplier power? correct answers -
medium to lower supplier power
-factors that increase supplier power are: limited number of suppliers, product quality is affected
by the quality of supply, suppliers have many different buyers
Threat of substitutes is another of Porters 5 Forces. How high is the threat of substitutes in the
fast food industry? correct answers HIGH
- lots of comparable substitute products like being able to cook from...?
Internal Environment correct answers Value Chain Analysis, SWOT, Resource Based View
(RBV)
Value Chain Analysis correct answers - looks at the sequential process of value creating
activities:
- value is the amount buyers are willing to pay for what a firm provides
- how is value created within the organization?
- how is value created for other organizations in the overall supply chain distribution channel?
- the value received must exceed the costs of production
- managers MUST NOT ignore the important of interrelationships among value chain activities
(within the firm and between firms)
- expand the value chain by exchanging resources
primary activités (contribute to the physical creation of the product or service; the sale and
transfer to buyer; and service after the sale: inbound logistics, operations, outbound logistics,
marketing and sales, service
support activities (either add value by themselves or add value through important relationships
with both primary activities and other support activities: procurement, tech development, HR
management, general admin
inbound (primary)- receiving, storing and distributing inputs
operations (primary) - transforming inputs in to the final product
outbound logistics (primary)- collecting, storing, and distributing the product or service to buyers
, marketing and sales (primary) - purchases of products and services by end users and includes
how to induce buyers to make those purchases
service (primary)- all actions associated with providing service to enhance or maintain the value
of a product
procurement (support) - how the firm purchases inputs used in its value chain
tech development (support) - R&D for product and process, collaborative relationships between
R&D and other departments, facilities and equip
HR mgmt (support) - recruiting, hiring, training and development and compensation of all types
of personnel
general admin (support) - overall goals and obj, relations and diverse stakehold
SWOT correct answers benefits:
-IDs which resources MAY = competitive advantage
-IDs areas that need to be cultivated
-simple and effective tool
limits:
- strengths don't always = competitive advantage
- static tool
- overemphasizes a single dimension of strategy
Resource Based View (RBV) correct answers - integrates 2 perspectives: an internal analysis of
phenomena within a company, and an external analysis of the industry and its competitive
environment
- resources can lead to a competitive advantage if: they are valuable, rare or hard to duplicate,
they are combined and making it hard to substitute for or duplicate
- firm resources must have 4 attributes to have a sustainable competitive advantage: VRIN
(Valuable, Rare, Inimitable, Non Substitutable)
Sources of inimitability:
- physical uniqueness
- path dependency(hard to duplicate bc of all that has happened along the path followed in the
development and/or accumulation of resources)
-causal ambiguity (impossible to explain what caused a resource to exist or how to recreate it)
- social complexity (resources that result from social engineering such as interpersonal relations,
culture)
Think about Netflix before they started streaming. Where would you classify these in the value
chain?
1 - Mailing the DVD to the customer
2 - hiring general employees
3 - advertising campaigns correct answers 1 - outbound logistics (primary)
2 - Human Resources (support)
3 - sales and marketing (primary)
