MAN 320F Exam 2 Question and Answers (A+ score)

MAN 320F Exam 2 Question and Answers (A+ score) MAN 320F Exam 2 Question and Answers (A+ score) What is the blue ocean strategy - ANSWER-go where the profits and growth are and where the competition isn't Technology and Globalization - ANSWER--info on products and prices will be immediately available -meaning accelerated commoditization (when brands become more similar, people buy on price) -Therefore, niche markets and monopolies quickly disappear Products and services introduced recently - ANSWER--iPhone in 2007 (1 billion units have been sold) -iPad in 2008 (450 million units) -Instagram in 2010 (850 million units) Things about the iPod that are important - ANSWER--a blue ocean strategy -looked beyond the "tradition" customer (looked at non-customers who refused the IPod but had other means of listening to digital music, also looked at non-customers who had never considered an IPod or other forms of digital music) What does blue ocean mean? - ANSWER--create new group of consumers, don't take away from a swindling group -create an industry not in existence today -most blue oceans are created from within a red ocean by expanding existing industry boundaries what are the two main reasons why a venture capitalist will NOT invest in a deal? - ANSWER-1) management team (they do not believe in them) 2) the do not see a potential return on investment What are two successful Austin companies - ANSWER-Whole Foods and Dell Computer What are the six key success factors? - ANSWER-market opportunity X 6 Red Ocean Strategy vs. Blue Ocean Strategy - ANSWER-red ocean- compete in existing market space, beat the competition, exploit existing demand, make the value/cost trade off, align the whole system of a firm's activities with its strategic choice of differentiation or low cost blue ocean- create uncontested market space, make the competition irrelevant, create and capture new demand, break the value/cost trade off, align the whole system of a firm's activities in pursuit of differentiation and low cost Some questions to raise with Cirque du Solei - ANSWER--is it a real circus after all they have eliminated? -is it theatre? If so then what genre? -is is a little of all of the genres and none of any of the genres all at once? -what industry does it fall into? -why do they compete with? Winning strategic approaches for Cirque du Solei - ANSWER--involves value innovation, value (cost, utility, and price position), creation and innovation -reduce the cost and increase the value for buyers -break the value cost trade-off, add value and reduce cost by enhancing a limited set of key factors and reducing or eliminating all other "traditional" factors Strategic thinking at Toyota - ANSWER--first to introduce a commercial hybrid car in 1997 -gas averaging $1.10 a gallon -only 300 sold in first year vs. 11 million by 2017 -today, Toyota market leader -strategic thinking took place because there’s a rising demand for energy and they saw there was a limited supply What is strategy - ANSWER--a strategy is a long-term plan for success -strategy is concerned with deciding what business ventures to take - ***a sustainable competitive advantage over long term*** strategic plan - ANSWER-a comprehensive plan that identifies the critical direction and guides the allocation of resources of an entire organization What is the broad environment consisting of? - ANSWER-socio-cultural forces, technological forces, economic forces, political/legal forces What are some major sociocultural issues/forces in the US - ANSWER--roles and policies of government -immigration -terrorism and security -importance of role of army -global energy -foreign investment ownership in the US what are some global economic forces? - ANSWER--economic growth -interest rates -trade deficits Economic Growth influence - ANSWER-influences consumer demand, cost factors of production Interest rates influence - ANSWER-influences cost of capital for new projects, debt, consumer spending CONTINUES...