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Description
Flashcards by Corey Beach, updated more than 1 year ago
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Created by Corey Beach
almost 10 years ago
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| Question | Answer |
| What are the three things that every good strategy has? | 1. Create unique & valuable position 2. Requires trade-offs 3. Creates a "fit" among company activities |
| What are the three core jobs of strategy? | 1. External environment 2. Internal choices 3. Competitive dynamics |
| How can a company create a unique and valuable position? | 1. Serve few needs of many customers 2. Serve broad needs of few customers 3. Serve broad needs of many customers in a narrow market. |
| Some competitive activities are incompatible; thus gains in one area can be achieved only at the expense of another area. | Trade-offs |
| What is "fit"? What is the benefit of having a good "fit"? | 1. The way activities interact 2. Drives competitive advantage and sustainability 3. Difficult to imitate |
| What is strategy? (Montes) | A strategy is an integrated set of choices that positions a firm in an industry so as to generate superior financial returns over the long run. |
| Operational Effectiveness means... | Performing activities better - aka faster, or with fewer inputs and defects - than rivals. [Toyota] |
| What is the issue related to operational effectiveness and the productivity frontier? | OE/best practices are easily emulated. Productivity frontier shifts out, lowering costs & improving value. Produces absolute improvement but no relative improvement for any one company. |
| What is the issue related to operational effectiveness and the competitive landscape? | Competitive convergence: The more companies adopt the same best practices, the more they start to look alike. |
| True or False: Operational effectiveness alone is sufficient to compete. | False. You also need to strategically position your company. You need to perform different activities from rivals or perform them in a different way. |
| What is on the x-axis of a productivity frontier chart? | Relative cost position |
| What is on the y-axis of a productivity frontier chart? | Value delivered (differentiation) |
| What pushes the productivity frontier outward? | Operational effectiveness |
| True or False: Competitive positioning means choosing a unique point on the productivity frontier. | True |
| What are the three "C's" of strategy? | Choice Consistency Complementary |
| What is a strategic activities map? | Map that shows a company's strategic position and how it s contained in a set of tailored activities designed to deliver it. |
| How is a strategic activities map constructed? | Core activity circles surrounded by clusters of activities tightly linked. |
| What are the three key questions to ask when reviewing a Strategic Activities Map? | 1. Activities consistent with overall positioning? 2. Ways to strengthening how activities reinforce one another? 3. Could changes in one activity eliminate the need to perform others? |
| What are the four components of the piston chart? | 1. Economic average 2. Industry structure 3. Competitive position 4. Firm profitability |
| True or False: Industry affiliation has a substantial impact on firm profitability. | True. Supermarkets have historically low profits, while pharma companies have high profits. This is the results of the economics of those industries. |
| What year does the Ducati case take place? | 2001 |
| What is the big question the CEO is pondering in Ducati at the start of the case? | Should Ducati enter the cruiser market? If not, how can Ducati sustain profitable growth? |
| In what industry segment does Ducati compete? | Sport |
| Who are the largest rivals in Ducati's segment? | Japanese companies, which at the time of case hold 57% of Ducati's segment |
| Where is Ducati positioned in the market? | Performance and function |
| True or False: Ducati's source of strategic advantage is in the cost leadership and broad categories. | False. Ducati is in the differentiation and narrow categories. |
| What were the three advantages Minoli found at Ducati? | 1. Good product 2. Top-notch engineers 3. Strong brand potential/loyalty |
| What was the first step in Minoli's turnaround plan? | Build a museum. |
| What was Minoli's plan around production? | 1. Fewer suppliers 2. Outsource all possible production 3. Keep only R&D, design, quality control & a few components in house. |
| What was Minoli's plan around marketing, sales, and distribution? | 1. Expand sales/marketing 2. Replace multi-franchise dealers with wholly-owned Ducati stores |
| What was Minoli's plan around product development & R&D? | 1. Increase R&D - especially racing 2. Keep design internal; reduce time to market |
| What was Minoli's plan around the World of Ducati? | 1. Retro advertising 2. Museum 3. Bike clubs 4. Events 5. Racing |
| How did Ducati's strategic position shift from 1996 to 2001? | Ducati even further differentiated themselves. |
| What are the arguments for Ducati to enter the cruiser market? | 1. You have the distribution channel 2. You need to capture older population 3. Potential for growth & increased market share 4. Maybe brand can extend to other segments |
| What are the arguments against Ducati entering the cruiser market? | 1. Dilute brand / not worth sacrificing 2. Up against Harley (great loyalty, could retaliate) 3. Room to grow in current market (geographically especially) 4. Would require a whole new set of capabilities |
| How can Ducati further increase revenues and lower costs? | 1. Raise prices/push high price bikes 2. Continue to expand apparel and merchandise |
| Why is the motorcycle industry favorable? | Rivalry is not especially high. By not entering Harley's market segment, Ducati helps preserve industry structure. |
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