MGT 8803 UPDATED EXAM SCRIPT QUESTIONS AND
SOLUTIONS GRADED A+
✔✔How Tesla does Differentiation - ✔✔battery technology, autonomous driving, high
performance, supercharger network, wow factor
✔✔Focus strategy - ✔✔establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
✔✔Vision - ✔✔mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
✔✔Mission - ✔✔how firm will achieve vision | product OR customer market focus
✔✔Core Values - ✔✔guiding principles of firm | support company's vision, shape
culture, & reflect company's identity & personality
✔✔Business Model Framework - ✔✔Value Delivery
Value Creation
Value Capture
(DCC)
✔✔Value Delivery - ✔✔customer-centric | specific customer needs being addressed by
product/service | how customers are organized into segments | marketing channels |
how relationships are formed with customers
✔✔Value Creation - ✔✔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
SOLUTIONS GRADED A+
✔✔How Tesla does Differentiation - ✔✔battery technology, autonomous driving, high
performance, supercharger network, wow factor
✔✔Focus strategy - ✔✔establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
✔✔Vision - ✔✔mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
✔✔Mission - ✔✔how firm will achieve vision | product OR customer market focus
✔✔Core Values - ✔✔guiding principles of firm | support company's vision, shape
culture, & reflect company's identity & personality
✔✔Business Model Framework - ✔✔Value Delivery
Value Creation
Value Capture
(DCC)
✔✔Value Delivery - ✔✔customer-centric | specific customer needs being addressed by
product/service | how customers are organized into segments | marketing channels |
how relationships are formed with customers
✔✔Value Creation - ✔✔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
