MAN 320F EXAM 2 AROIAN 100% SUCCESS (ALREADY GRADED A+)

MAN 320F EXAM 2 AROIAN 100% SUCCESS (ALREADY GRADED A+) what is a "Blue Ocean"? - ANS--create an industry not in existence -unknown market space -untainted by competition -demand is created rather than fought over -opportunity for rapid and profitable growth what's a Red Ocean? - ANS--all industries in existence -known market space -as market space gets crowded, profits and growth reduced -tainted by competition how does the iPod connect to the Blue Ocean Strategy? / How did Apple move away from a 'red ocean'? - ANS--looked beyond the "traditional" customer -looked at non-customers (ppl who refused the iPod but had other way of listening to digital music) -looked at non-consumers (ppl who would've never have even considered an iPod or MP3) -this way of thinking moved Apple away from the "red ocean" how are most blue oceans created? - ANS-most blue oceans are created from within red oceans by expanding existing industry boundaries what are the 2 main reasons why a venture capitalist will NOT invest in a deal? - ANS-1. don't believe in management being successful 2. don't believe rate of return will be there why would a "smart" investor NOT invest in successful tax companies Dell & WholeFoods? - ANS--Dell: don't want to give money to a 20yo -WF: hippies lol key success factor? - ANS-market opportunity!! compare Red/Blue oceans based on market space - ANS--red: compete in existing market space -blue: create uncontested market space compare r/b oceans - completion - ANS--r: beat competition -b: competition is irrelevant compare r/b oceans - demand - ANS-r - exploit existing demand b - create & capture new demand compare r/b oceans - value-cost tradeoff - ANS-r- make value-cost tradeoff b- break that trade off and do both compare r/b oceans - choosing differentiation / low cost - ANS-r- choose one OR other b- choose BOTH (AND) the winning approach involves ____ ___ - ANS-value innovation (reduce cost, increase value for buyers) how do you break the value-cost tradeoff? - ANS-add value AND reduce cost by enhancing a limited set of key factors and reducing or eliminating all other traditional factors what was the strategic thinking at Toyota? - ANS--looked at global energy consumption -predicted gas prices to increase over LONGTERM -1st to introduce commercial hybrid car in 1997 -today, market leader define strategy - ANS--a long-term plan for success -concerned with what business should be in & where it wants to be what's a strategic plan - ANS-a comprehensive plan that identifies the critical direction & guides the allocation of resources strategic management is the process in which orgs: - ANS-1. analyze and learn from stakeholders inside & outside the org 2. establish strategic direction 3. create strategies that are intended to help achieve the established goals 4. execute strategy -all in effort to satisfy key organizational stakeholders mission statement vs vision statement - ANS-mission: what an org is vision: forward-thinking / what org wants to become a Broad Environment consists of: - ANS-domestic & global forces such as: -sociocultural trends (e.g. demographics) -technological trends (e.g. internet) -political trends (e.g. open markets) -economic trends (e.g. growing economy) name global economic forces to monitor and predict: - ANS--economic growth -interest rates -trade deficits Continues...