COB 300 A MANAGEMENT CH 6 EXAM
QUESTIONS AND ANSWERS
Portfolio strategy - Answer-Minimizes risk by diversifying investment among various
businesses or product lines
- reduce risk through related diversification
Boston Consulting Group Matrix - Answer-Stars - high MS, high MG
Cows - high MS low MG
?'s - low MS, high MG
Dogs - low MS, low MG
Positioning Strategies - Answer-- Cost leadership - Producing a product of acceptable
quality at consistently lower production costs than competitors
- Differentiation - Providing a product or service that is different from competitors'
offerings that customers are willing to pay a premium price for it
- Focus strategy - Using cost leadership or differentiation to produce a specialized
product or service for a specially targeted group of customers
Porter's Four Competitive Strategies - Answer-Cost Leadership - broad market, low
cost(Walmart)
Focus Cost - narrow market, low cost(IKEA)
Differentiation - broad market, unique product(Zappos)
Focus Differentiation - narrow market, unique product(Ferrari)
Three Core Processes of Effective Business Execution - Answer-- People - Consider
who will benefit you in the future
- Strategy - Consider how success will be accomplished
- Operations - Consider what path will be followed
Sustainable Advantage - Answer-Value provided by a firm that cannot be duplicated by
other companies
Resources must be:
-Valuable (employees)
-Rare (diamonds)
-Imperfectly imitable (google maps)
-Non-substitutable (customer service)
Strategy-Making Process - Answer-Assessing the need for strategic change
Conducting a situational analysis
Choosing strategic alternatives
Competitive inertia - Answer-Reluctance to change strategies or competitive practices
that have been successful in the past
QUESTIONS AND ANSWERS
Portfolio strategy - Answer-Minimizes risk by diversifying investment among various
businesses or product lines
- reduce risk through related diversification
Boston Consulting Group Matrix - Answer-Stars - high MS, high MG
Cows - high MS low MG
?'s - low MS, high MG
Dogs - low MS, low MG
Positioning Strategies - Answer-- Cost leadership - Producing a product of acceptable
quality at consistently lower production costs than competitors
- Differentiation - Providing a product or service that is different from competitors'
offerings that customers are willing to pay a premium price for it
- Focus strategy - Using cost leadership or differentiation to produce a specialized
product or service for a specially targeted group of customers
Porter's Four Competitive Strategies - Answer-Cost Leadership - broad market, low
cost(Walmart)
Focus Cost - narrow market, low cost(IKEA)
Differentiation - broad market, unique product(Zappos)
Focus Differentiation - narrow market, unique product(Ferrari)
Three Core Processes of Effective Business Execution - Answer-- People - Consider
who will benefit you in the future
- Strategy - Consider how success will be accomplished
- Operations - Consider what path will be followed
Sustainable Advantage - Answer-Value provided by a firm that cannot be duplicated by
other companies
Resources must be:
-Valuable (employees)
-Rare (diamonds)
-Imperfectly imitable (google maps)
-Non-substitutable (customer service)
Strategy-Making Process - Answer-Assessing the need for strategic change
Conducting a situational analysis
Choosing strategic alternatives
Competitive inertia - Answer-Reluctance to change strategies or competitive practices
that have been successful in the past
