MODULE 9 - Crafting and Executing Strategy Exam Q

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QUESTION 2: Process Flow of Strategy The process flow of crafting strategy could be divided into 6 different phases as drawn above. functions. The phases are: a. Phase 1: Developing strategic vision b. Phase 2: Setting objectives c. Phase 3: Crafting Strategy d. Phase 4: Implementing and executing strategy e. Phase 5: Monitoring developments, evaluating performance and making corrective actions Resource Allocation Company External Best strategy options Fitting to Competitive Strategy Environment Analysis strategy (Business Level) Each phase will serve different

Phase 1 Developing Strategic Vision

Phase 2 Setting Objectives

Phase 3 Crafting A strategy (To achieve the objective & mission)

Phase 4 Implementing and Executing Strategy

Phase 5 Monitoring Developments, Evaluating Performance, Making Corrective Actions

Company Internal Environment Analysis Best strategy options Beyond Competitive (Corporate Level) Shaping Performance

Revise as needed in light of actual Performance, changing condition, new opportunities & new ideas.

QUESTION 3: How to overcome buyer seller relationship? i. Partnership Increasing important element in B2B relationship. ii. Collaboration: y Just-in-time deliveries reduce inventory & logistic cost y Order processing order then process y Electronic Payments reduction of time & complexity y Data sharing planning, budgeting, performance etc. y Speed availability of next generation components y Develop innovative ideas y Price agreement between buyer and seller. This has been practiced in oil and gas sector such as PETRONAS in Malaysia; PETORNAS vs Contractor. QUESTION 7: The 5 generic Competitive Strategies choose 1 and explain The 5 strategic options are: i. Low Cost Provider Strategy ii. Broad Differentiation Strategy iii. Best-cost provider Strategy iv. Focused (or market niche) strategy based on lower cost v. Focused (or market niche) strategy based on differentiation ii. Broad Differentiation Strategy It means here that the company is really in state of differentiate in their product or services compared to other rivals in industry. How to achieve: a. To incorporate that the product attribute or user features at lower cost for the buyer b. To increase the product performance c. To incorporate the buyers satisfaction on the product

QUESTION 4: Select one of 8 components of strategy execution and explain Building Capable Organization Building Capable Organization is one of the critical components the success of strategic execution. There are 3 main components in building a strong organization: i. Staffing the organization y Putting together strong management team y Reinstate & recruiting talented employees ii. Building core competencies and competitive capabilities y Develop the ability to do something despite imperfectly or inefficiently y Let experience grows & company perform consistently to an acceptable cost y Train, polish the know-how, sharpens the capabilities until become better than rivals. iii. Matching organization structure to strategy y Decide which value chain activities to perform internally and which to be outsourced. y Make internally performed strategycritical activities the main building blocks in the organization structured. y Decide how much authority to centralize at the top and how much to delegate to down-the-line managers and employees. y Provide the cross unit coordination y Provide for the necessary collaboration with suppliers and strategic alliances. QUESTION 5: First Mover and Fast Follower Strategy The company has to decide to be the 1 st . mover to implement or the fast follower in implementing the strategy. In all cases, the company actually needs to be the 1st . mover to implement the selected strategic choices. a) First Mover: Being the 1st . mover, there is advantages and vice versa. Advantages i. Able to build a firms image and reputation with buyers

b)

Early commitments to a technologies, distribution channels, new style and can produce a cost advantage to rivals iii. 1st . time customers remains strong loyal to pioneering company iv. Moving 1st contributing to imitation extra hard or unlikely. Disadvantages i. Must be a deep pocket ii. Must have good competencies iii. Must have high quality management Fast Follower: Advantages i. Pioneering leadership is costly and hence fast follower would be able to reduce it cost since it involves imitating ii. A pioneer product might have somewhat being not able to achieve the customer requirement but the fast follower would immediately able to meet the requirement. iii. The fast follower is able to follow the technology since the technology is moving fast and able to plan for 2 nd. generation or even 3rd . generation product immediately.

ii.

iii.

Distinctive Competencies Competitively valuable activity a company performs better than its rival 4 Characteristic of Distinctive Competencies 1. Valuable 2. Rare 3. Costly to Imitate 4. Non-substitutable Example of Distinctive Competencies y Sharp Corporation Expertise in flat panel technology y Toyota and Honda Low cost, high quality manufacturing capability & short design-to-market cycles y Intel Ability to design & manufacture ever more powerful microprocessor for PCs

QUESTION 6: Understanding Competencies, Distinctive Competencies i. Competencies The product of organizational learning & experience. Its representing real proficiency in performing activities. ii. Core competencies Well perform activity to the companys competitiveness & profitability Example of Core competencies y Expertise in integrating multiple technologies to create families of new products y Know-how in creating operating systems for cost efficient supply chain management y Speeding new/next generation products to market y Better after sales service capability y Skill in manufacturing a high quality product

QUESTION 8: Advantages & Disadvantages of outsourcing Outsourcing is letting the outsider to do or undertake any activity of the company. Advantages: i. Improve firms ability to have cheaper and better component or services ii. Enhance firms flexibility customer need & market condition shift iii. Increase firms ability to assemble diverse kind of expertise iv. Allows firm to develop resources for competitive Disadvantages: i. Too much of outsourcing (activities) ii. Outsource wrong activities iii. Hollowing out capabilities iv. Losing touch with activities & expertise which determines long-term success

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