QUESTION 2:Process Flow of Strategy

The process flow of crafting strategy could be divided into 6 different phases as drawn “above”. Each phase will serve different functions. The phases are:

a. Phase 1: Developing strategic visionb. Phase 2: Setting objectivesc. Phase 3: Crafting Strategyd. Phase 4: Implementing and executing strategye. Phase 5: Monitoring developments, evaluating performance and making corrective actions

QUESTION 3:How to overcome buyer seller relationship?

i. Partnership – Increasing important element in B2B relationship.ii. Collaboration:

Just-in-time deliveries – reduce inventory & logistic cost Order processing – order then process Electronic Payments – reduction of time & complexity Data sharing – planning, budgeting, performance etc. Speed availability of next generation components Develop innovative ideas 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 explainThe 5 strategic options are:

i. Low Cost Provider Strategyii. Broad Differentiation Strategy iii. Best-cost provider Strategyiv. Focused (or market niche) strategy based on lower costv. 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 buyerb. To increase the product performancec. To incorporate the buyers satisfaction on the product

DevelopingStrategic

Vision

SettingObjectives

CraftingA strategy

(To achieve the objective & mission)

Implementing and Executing

Strategy

MonitoringDevelopments,

EvaluatingPerformance,

Making Corrective

Actions

Company ExternalEnvironment Analysis

Best strategy optionsCompetitive Strategy(Business Level)

Resource Allocation Fitting to strategy

Best strategy optionsBeyond Competitive(Corporate Level)

Company InternalEnvironment Analysis

ShapingPerformance

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

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

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 – Putting together strong

management team Reinstate & recruiting talented

employeesii. Building core competencies and

competitive capabilities – Develop the ability to do

something despite imperfectly or inefficiently

Let experience grows & company perform consistently to an acceptable cost

Train, polish the know-how, sharpens the capabilities until become better than rivals.

iii. Matching organization structure to strategy –

Decide which value chain activities to perform internally and which to be outsourced.

Make internally performed strategy-critical activities the main building blocks in the organization structured.

Decide how much authority to centralize at the top and how much to delegate to down-the-line managers and employees.

Provide the cross unit coordination Provide for the necessary

collaboration with suppliers and strategic alliances.

QUESTION 5:First Mover and Fast Follower StrategyThe company has to decide to be the 1st. 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 firm’s image and

reputation with buyersii. 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 pocketii. Must have good competenciesiii. Must have high quality management

b) 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 2nd. generation or even 3rd. generation product immediately.

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 company’s competitiveness & profitability

Example of Core competencies –

Expertise in integrating multiple technologies to create families of new products

Know-how in creating operating systems for cost efficient supply chain management

Speeding new/next generation products to market

Better after sales service capability

Skill in manufacturing a high quality product

iii. Distinctive Competencies –Competitively valuable activity a company performs better than its rival

4 Characteristic of Distinctive Competencies –1. Valuable2. Rare3. Costly to Imitate4. Non-substitutableExample of Distinctive Competencies – Sharp Corporation

Expertise in flat panel technology Toyota and Honda

Low cost, high quality manufacturing capability & short design-to-market cycles

IntelAbility to design & manufacture ever more powerful microprocessor for PC’s

QUESTION 8:Advantages & Disadvantages of outsourcingOutsourcing 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 servicesii. Enhance firms flexibility – customer

need & market condition shiftiii. Increase firms ability to assemble

diverse kind of expertiseiv. Allows firm to develop resources for

competitiveDisadvantages:

i. Too much of outsourcing (activities)ii. Outsource wrong activitiesiii. Hollowing out capabilitiesiv. Losing touch with activities &

expertise – which determines long-term success