Study Guide Strategic Management

Study Guide – Strategic Management

Chapter 5 – Multiple Choice

* Generic business level strategies (5Q) – heavy -

* Industry Life Cycle- Intro, growth, maturity, decline

* Intro- product unfamiliar to consumers, mkt segments not well defined, features not clear

* Strategy: develop product and get feedback/exposure

* Growth- Strong increase in sales, attractive to potential rivals, building consumer preference

* Strategy: build up image & loyalty, differentiate yourself in some way, resource your efforts

* Maturity- demand begins to slow, mkt becomes saturated, competition becomes biggest

* Strategy: efficient manufacturing/engineering, lower costs, break away

* Decline- sales/demand decline, strategic options become dependent on rivals

* The market is growing the competition is increasing, what stage is it?

* Piecemeal manufacturing- revamping operations so that the sum of the savings is substantial

* Asset cost strategy- holding on to assets until they are more marketable while also keeping costs low

Chapter 6 – Multiple Choice

* Economies of scope:

* What is it?

An economic theory stating that the average total cost of production decreases as a result of increasing the number of different goods produced.

* Leveraging Core Competences

* Sharing activities

* Leveraging Key resources

* Reputation

* Expert staff

* Management Skills

* RND

* Production facilities

* Application based question

* Synergy: the sum of the parts is greater than the whole

* How’s synergy achieved?

* Related Business: Horizontal relationships

* Sharing tangible resources

* Sharing intangible resources

* Unrelated Businesses (hierarchical relationships)

* Value...