Customer value proposition and profit formula

Question

Assignment:

PART 1

• Define strategy (possible short answer)
• What is competitive advantage? (Define sustainable competitive advantage)
• Efficiency vs. Effectiveness
• Deliberate vs. Emergent strategy (realized strategy)
• What is business model? (possible essay question)
• Customer value proposition and profit formula
• Three tests of a winning strategy
• The fit test, The Competitive Advantage Test, The Performance Test

PART 2

Stage 1

• Developing a strategic vision
• Communicating a strategic vision
• Crafting a mission statement
• Linking the vision and mission with company values

Stage 2

• Financial objectives vs. Strategic Objectives
• SMART Goal Setting (Specific, Measurable, Attainable, Reasonable, Timely)
• Balance Scorecard (Customer, Financial, Internal Business and Learning and Growth Perspectives)

Stage 3

• Strategy Making at All Organizational Levels
• Corporate, Business, Functional and Operating Strategies
• Define Strategic Plan

Stage 4

• Executing the strategy

Sage 5

• Evaluating Performance
• Define corporate governance (possible short answer)
• Important obligations of Board of Directors (possible short answer)

PART 3

Components of Macro-Environment (Figure 3.2) (possible essay answer)

Define macro-environment (possible short answer)

Question 1: Does the industry offer attractive opportunities for growth?

Question 2: What kind of competitive forces are industry members facing, and how strong are they?
Porter 5 model (Rivalry among competitors, Threat of New Entrants, Threat of Substitute Products, Power of Buyers, Power of Suppliers)-(possible essay)-Figure 3.3

Factors affecting the strength of each of these forces (Figure 3.4, 3.5, 3.6, 3.7, 3.8)

Matching Company strategy to Competitive Conditions

Question 3: What factors are driving industry change, and what impacts will they have?

Question 4: How are industry rivals positioned-Who is strongly positioned and who is not?

Define strategic group and strategic group mapping (what can be learned from it?)

Question 5: What strategic moves are rivals likely to make next?

Resource similarity and market communality

What is competitive intelligence?

Question 6: What are the key success factors for future competitive success?

Define KSF

Question 7: Does the industry offer good prospects for attractive profits?

PART 4

• How well is the company's present strategy working?
• Profitability Ratios (Gross profit margin, operating profit margin, ROA)
• Liquidity Ratios (Current Ratio)
• Leverage Ratios (Debt-to-asset ratio, Debt-to-equity ratio)
• Activity Ratios (Inventory Turnover)
• What are the company's competitively important resources and capabilities?
• Define resource and capability

• The four tests of resource's competitive power (valuable, rare, hard to copy, hard to substitute)-(possible short answer)
• Is the company able to seize market opportunities and nullify external threats?
• Define competence, core competence and distinctive competence
• How to perform SWOT Analysis (Strengths, Weakness, Opportunities, Threats)-¬(possible essay)
• What do the SWOT Listings Reveal?
• Are the company's prices and costs competitive with those of key rivals, and does it have and appealing customer value proposition?
• The concept of a Company Value Chain - (possible essay)
• Value chain for the industry (4.4) - (possible essay)

• Define benchmarking
• Improving the efficiency and effectiveness of internally performed and supplier-related value chain activities
• Translating proficient performance of value chain activities into competitive advantage
• Question 5: Is the company competitively stronger or weaker than key rivals?

PART 5

• Five generic competitive strategies (overall low-cost, broad differentiation, focused low-cost, focused differentiation, best-cost provider)- (possible essay)
• Advantages and disadvantages of each of these strategies
• Impact of value chain activities for each of these strategies(possible essay)
• When each of these strategies works best?
• Cost driver vs. unique driver(possible short answer)

PART 6

• Choosing the Basis for Competitive Attack
• Which Rivals should you attack?
• Blue-Ocean Strategy (possible short answer)
• Advantages and disadvantages of first-mover and late-mover
• Define scope of the firm (vertical vs. horizontal scope)-(possible short answer)
• Horizontal merger and acquisition strategies
• Vertical integration (advantages and disadvantages)
• Define outsourcing-(possible short answer)
• Define strategic alliances (joint-venture) and discuss about the benefits and drawbacks