Podcast
Questions and Answers
Within the strategic management process, what is the primary purpose of conducting an environmental analysis?
Within the strategic management process, what is the primary purpose of conducting an environmental analysis?
- To evaluate the performance of previously implemented strategies.
- To implement strategies formulated in previous stages directly.
- To develop the company's vision and mission statements.
- To understand the competitive advantages available to the organization. (correct)
Which of the following best describes the 'strategic management' of a company?
Which of the following best describes the 'strategic management' of a company?
- Formulating, performing, and evaluating strategies for competitive advantage and better performance. (correct)
- Purely reactive measures taken in response to immediate market changes.
- Day-to-day tasks performed to maximize immediate profits.
- A short-term operational plan managed by mid-level employees.
Which characteristic is least likely to be associated with strategic decisions?
Which characteristic is least likely to be associated with strategic decisions?
- Impacting the entire organization.
- Having lasting consequences for the business.
- Being difficult and costly to reverse.
- Easily reversible with minimal financial impact. (correct)
In the context of strategic management, who is typically responsible for implementing the long-term strategic plans of a company?
In the context of strategic management, who is typically responsible for implementing the long-term strategic plans of a company?
A company is performing a SWOT analysis. Which of the following would be classified as an 'Opportunity'?
A company is performing a SWOT analysis. Which of the following would be classified as an 'Opportunity'?
A forestry business is analysing its external environment. What aspect would be considered part of the 'general environment' rather than the 'industry environment'?
A forestry business is analysing its external environment. What aspect would be considered part of the 'general environment' rather than the 'industry environment'?
Which sequence accurately represents the typical order of steps in the strategic management process?
Which sequence accurately represents the typical order of steps in the strategic management process?
What is the primary implication if a business's strategic decisions are not directly linked to its performance, profitability, and sustainability?
What is the primary implication if a business's strategic decisions are not directly linked to its performance, profitability, and sustainability?
Which of the following best illustrates a company leveraging its human resource strength in a competitive market?
Which of the following best illustrates a company leveraging its human resource strength in a competitive market?
A local bakery is experiencing increased demand for gluten-free products. Which of the following represents an opportunity for the bakery based on this market trend?
A local bakery is experiencing increased demand for gluten-free products. Which of the following represents an opportunity for the bakery based on this market trend?
A pharmaceutical company holds a patent for a breakthrough drug. How does this resource primarily contribute to the company's competitive advantage?
A pharmaceutical company holds a patent for a breakthrough drug. How does this resource primarily contribute to the company's competitive advantage?
A new government regulation mandates that all manufacturing companies reduce their carbon emissions by 20% within the next five years. How would a company's failure to comply with this regulation be classified in a SWOT analysis?
A new government regulation mandates that all manufacturing companies reduce their carbon emissions by 20% within the next five years. How would a company's failure to comply with this regulation be classified in a SWOT analysis?
UGrain, a grain marketing app, requires minimal initial investment. Which resource category is least critical for UGrain's initial success compared to a traditional agricultural business?
UGrain, a grain marketing app, requires minimal initial investment. Which resource category is least critical for UGrain's initial success compared to a traditional agricultural business?
Which scenario exemplifies how changes in customer preferences can pose a threat to an established business?
Which scenario exemplifies how changes in customer preferences can pose a threat to an established business?
FenderXtender, a company specializing in patented musical instrument accessories, identifies a weakness in its financial resources. Which action would best address this internal weakness?
FenderXtender, a company specializing in patented musical instrument accessories, identifies a weakness in its financial resources. Which action would best address this internal weakness?
A farming cooperative is analyzing the threat of increasingly unpredictable weather patterns due to climate change. Which strategy would best mitigate this external threat?
A farming cooperative is analyzing the threat of increasingly unpredictable weather patterns due to climate change. Which strategy would best mitigate this external threat?
In a SWOT analysis for a biodiesel production company, which of the following factors, if present, would be classified as a strength?
In a SWOT analysis for a biodiesel production company, which of the following factors, if present, would be classified as a strength?
For a company like Coca-Cola, which scenario would be most appropriately categorized as a 'threat' in a SWOT analysis?
For a company like Coca-Cola, which scenario would be most appropriately categorized as a 'threat' in a SWOT analysis?
When conducting a SWOT analysis, under which circumstances is it most beneficial for a company to undertake this strategic planning tool?
When conducting a SWOT analysis, under which circumstances is it most beneficial for a company to undertake this strategic planning tool?
A SWOT analysis reveals a grocery chain's reliance on a single supplier for a key product. How would this be classified?
A SWOT analysis reveals a grocery chain's reliance on a single supplier for a key product. How would this be classified?
For automakers, which environmental trend would most likely be classified as an 'opportunity' in a SWOT analysis?
For automakers, which environmental trend would most likely be classified as an 'opportunity' in a SWOT analysis?
A biodiesel company identifies 'fluctuating prices of feedstock' in its SWOT analysis. How should this be classified?
A biodiesel company identifies 'fluctuating prices of feedstock' in its SWOT analysis. How should this be classified?
Which of the following best describes the primary use of a SWOT analysis in business?
Which of the following best describes the primary use of a SWOT analysis in business?
A technology company has a highly skilled research and development team but struggles with marketing its products. What part of the SWOT analysis covers the marketing challenge?
A technology company has a highly skilled research and development team but struggles with marketing its products. What part of the SWOT analysis covers the marketing challenge?
Why is involving all members of an organization in strategic planning considered effective?
Why is involving all members of an organization in strategic planning considered effective?
In the context of evaluating a strategy, which question primarily assesses the long-term viability of the strategic decisions?
In the context of evaluating a strategy, which question primarily assesses the long-term viability of the strategic decisions?
A meat producer discovers that one of its distributors is not adhering to quality standards. What is the most likely consequence of this?
A meat producer discovers that one of its distributors is not adhering to quality standards. What is the most likely consequence of this?
How do firms in the same industry often justify different positioning strategies?
How do firms in the same industry often justify different positioning strategies?
What is the role of accounting measures like 'Return on Sales' (ROS) and 'Return on Assets' (ROA) in the strategic management process?
What is the role of accounting measures like 'Return on Sales' (ROS) and 'Return on Assets' (ROA) in the strategic management process?
What is the primary role of market strategy in a business?
What is the primary role of market strategy in a business?
How did Highland Feeders adapt their strategy after conducting an environmental analysis?
How did Highland Feeders adapt their strategy after conducting an environmental analysis?
In the context of strategy formulation, how does a SWOT analysis inform subsequent strategic decisions?
In the context of strategy formulation, how does a SWOT analysis inform subsequent strategic decisions?
Why is sharing animal and carcass performance information with partners important in Highland Feeders' value chain?
Why is sharing animal and carcass performance information with partners important in Highland Feeders' value chain?
What is the MOST LIKELY immediate strategic response to the insight of 'Short of labor given the market trends' following a SWOT
What is the MOST LIKELY immediate strategic response to the insight of 'Short of labor given the market trends' following a SWOT
What is the overall purpose of implementing a production system where partners must adhere to agreed protocols, as demonstrated by Highland Feeders?
What is the overall purpose of implementing a production system where partners must adhere to agreed protocols, as demonstrated by Highland Feeders?
In the strategic management process, after conducting an environmental analysis and SWOT analysis, what is the next crucial step?
In the strategic management process, after conducting an environmental analysis and SWOT analysis, what is the next crucial step?
What benefit does a market strategy provide to a business in terms of resource allocation?
What benefit does a market strategy provide to a business in terms of resource allocation?
According to Schumpeter's Innovation Theory, what is the primary consequence of a successful new innovation in the market?
According to Schumpeter's Innovation Theory, what is the primary consequence of a successful new innovation in the market?
In the context of the STP (Segmentation, Targeting, Positioning) model, which of the following questions is most relevant to the targeting component?
In the context of the STP (Segmentation, Targeting, Positioning) model, which of the following questions is most relevant to the targeting component?
During which phase of the business cycle described is new innovation most likely to spur economic growth?
During which phase of the business cycle described is new innovation most likely to spur economic growth?
If a company pursuing a cost leadership strategy chooses to match its rivals' prices rather than undercutting them, what is the most likely outcome?
If a company pursuing a cost leadership strategy chooses to match its rivals' prices rather than undercutting them, what is the most likely outcome?
Under what circumstances is a cost advantage strategy most suitable?
Under what circumstances is a cost advantage strategy most suitable?
For which type of product is a benefit advantage strategy generally more appropriate?
For which type of product is a benefit advantage strategy generally more appropriate?
A company has maximized its economies of scale and learning curve efficiencies. According to the framework for competitive advantage, what strategic focus should they adopt next to enhance value creation?
A company has maximized its economies of scale and learning curve efficiencies. According to the framework for competitive advantage, what strategic focus should they adopt next to enhance value creation?
How does Schumpeter's view of competition differ from traditional economic models?
How does Schumpeter's view of competition differ from traditional economic models?
According to the STP model, how does product positioning enhance commercial effectiveness?
According to the STP model, how does product positioning enhance commercial effectiveness?
In the context of the STP model, which of the following is the most relevant to the 'Targeting' component?
In the context of the STP model, which of the following is the most relevant to the 'Targeting' component?
What is the primary goal of product differentiation in a competitive market?
What is the primary goal of product differentiation in a competitive market?
How does strong brand identity and perception contribute to effective product differentiation?
How does strong brand identity and perception contribute to effective product differentiation?
What benefit does product differentiation provide regarding pricing strategy?
What benefit does product differentiation provide regarding pricing strategy?
How does the integration of product differentiation with the STP model enhance market strategy?
How does the integration of product differentiation with the STP model enhance market strategy?
In the context of Hotelling's model and horizontal differentiation, what is the primary reason competitors might choose to locate near each other?
In the context of Hotelling's model and horizontal differentiation, what is the primary reason competitors might choose to locate near each other?
According to the concept of horizontal differentiation, why are differentiated products considered 'imperfect substitutes'?
According to the concept of horizontal differentiation, why are differentiated products considered 'imperfect substitutes'?
What is the primary purpose of using a 'loss leader' pricing strategy?
What is the primary purpose of using a 'loss leader' pricing strategy?
A retailer implements a 'what the market will bear' pricing strategy. Which scenario best aligns with this approach?
A retailer implements a 'what the market will bear' pricing strategy. Which scenario best aligns with this approach?
Why is it essential for a business to clearly define its sales and profit objectives?
Why is it essential for a business to clearly define its sales and profit objectives?
Which of the following objectives is the best example of a 'SMART' objective?
Which of the following objectives is the best example of a 'SMART' objective?
Why is it more useful to plan for the future rather than trying to predict it, in the context of strategic planning?
Why is it more useful to plan for the future rather than trying to predict it, in the context of strategic planning?
A company has annual fixed costs of $50,000. They sell their product for $40 per unit, and the variable costs are $20 per unit. What is the breakeven point in units?
A company has annual fixed costs of $50,000. They sell their product for $40 per unit, and the variable costs are $20 per unit. What is the breakeven point in units?
A business sells 5,000 units of its product. The total revenue is $150,000, and the total costs are $120,000. What is the profit made by the business?
A business sells 5,000 units of its product. The total revenue is $150,000, and the total costs are $120,000. What is the profit made by the business?
A product has a selling price of $50 and a cost of $45. What is the markup percentage on the selling price?
A product has a selling price of $50 and a cost of $45. What is the markup percentage on the selling price?
Suppose two horizontally differentiated products are available at the same price. What does a non-zero market share for both products indicate about consumer preferences?
Suppose two horizontally differentiated products are available at the same price. What does a non-zero market share for both products indicate about consumer preferences?
How do the demand curves faced by firms with product differentiation typically differ from those faced by firms without product differentiation?
How do the demand curves faced by firms with product differentiation typically differ from those faced by firms without product differentiation?
If two car models are vertically differentiated, and both are priced the same, what is the expected consumer behavior?
If two car models are vertically differentiated, and both are priced the same, what is the expected consumer behavior?
How does the own-price elasticity of demand generally differ between strongly differentiated products and weakly differentiated products?
How does the own-price elasticity of demand generally differ between strongly differentiated products and weakly differentiated products?
How does 'skimming pricing' contrast with 'penetration pricing' in terms of initial price setting and market objectives?
How does 'skimming pricing' contrast with 'penetration pricing' in terms of initial price setting and market objectives?
Under what circumstances would 'follow-the-leader pricing' be a risky strategy for a company to adopt?
Under what circumstances would 'follow-the-leader pricing' be a risky strategy for a company to adopt?
What is the primary goal of 'penetration pricing' as a pricing strategy?
What is the primary goal of 'penetration pricing' as a pricing strategy?
How does 'flexible pricing' differ from 'variable pricing'?
How does 'flexible pricing' differ from 'variable pricing'?
Which pricing strategy involves charging an initial fixed fee plus a secondary fee based on the quantity consumed?
Which pricing strategy involves charging an initial fixed fee plus a secondary fee based on the quantity consumed?
What is the key requirement for a firm to successfully implement first-degree (perfect) price discrimination?
What is the key requirement for a firm to successfully implement first-degree (perfect) price discrimination?
Which of the following exemplifies indirect segmentation in price discrimination?
Which of the following exemplifies indirect segmentation in price discrimination?
A company sells a product at varying prices based on observable customer attributes. What type of price discrimination does this exemplify?
A company sells a product at varying prices based on observable customer attributes. What type of price discrimination does this exemplify?
How does second-degree price discrimination differ from third-degree price discrimination?
How does second-degree price discrimination differ from third-degree price discrimination?
In the context of promotional strategy, what is the relationship between a business's positioning strategy and its promotional activities?
In the context of promotional strategy, what is the relationship between a business's positioning strategy and its promotional activities?
Which factor is least likely to dictate a company's advertisement program?
Which factor is least likely to dictate a company's advertisement program?
A food company is considering entering a market with an established dominant brand. What pricing factor should the company consider?
A food company is considering entering a market with an established dominant brand. What pricing factor should the company consider?
What should a manager consider when aligning advertising and sales efforts to meet selling objectives?
What should a manager consider when aligning advertising and sales efforts to meet selling objectives?
Which is an example of a company segmenting its market based on consumer values and preferences?
Which is an example of a company segmenting its market based on consumer values and preferences?
In the context of designing a successful product, which aspect represents a 'relative advantage'?
In the context of designing a successful product, which aspect represents a 'relative advantage'?
A new business aims to maximize profits. How should they approach the relationship between price, sales volume, and profit?
A new business aims to maximize profits. How should they approach the relationship between price, sales volume, and profit?
Which scenario illustrates price discrimination?
Which scenario illustrates price discrimination?
What condition is essential for a company to implement price discrimination successfully?
What condition is essential for a company to implement price discrimination successfully?
In the context of price discrimination, what does 'market segmentation' primarily help to prevent?
In the context of price discrimination, what does 'market segmentation' primarily help to prevent?
What capability does a company need to effectively practice 'direct segmentation' (a modern form of price discrimination)?
What capability does a company need to effectively practice 'direct segmentation' (a modern form of price discrimination)?
A business is analyzing its past performance as part of a market analysis. Which metric would be most useful in determining areas for operational improvement?
A business is analyzing its past performance as part of a market analysis. Which metric would be most useful in determining areas for operational improvement?
When defining 'the market' as part of a market analysis, what key question helps determine the potential for sustainable growth?
When defining 'the market' as part of a market analysis, what key question helps determine the potential for sustainable growth?
In examining the competitive landscape, what information provides the most insight into developing a successful counter-strategy?
In examining the competitive landscape, what information provides the most insight into developing a successful counter-strategy?
When analyzing customers for market analysis, which aspect of customer behavior gives the best insight into optimizing product placement and promotional activities?
When analyzing customers for market analysis, which aspect of customer behavior gives the best insight into optimizing product placement and promotional activities?
When identifying a target market, what is the most important factor in determining if a competitive advantage can be achieved?
When identifying a target market, what is the most important factor in determining if a competitive advantage can be achieved?
Santa Fe Food Company wants to increase its gross profit. Which strategy will directly contribute to achieving this goal, based on the information provided?
Santa Fe Food Company wants to increase its gross profit. Which strategy will directly contribute to achieving this goal, based on the information provided?
Based on the Rippling Hill Farms example, how has market analysis most likely informed their strategic decisions regarding goat cheese production?
Based on the Rippling Hill Farms example, how has market analysis most likely informed their strategic decisions regarding goat cheese production?
A small forestry business is determining whether to expand. Which factor related to the 'market' should be analyzed to make the most informed decision?
A small forestry business is determining whether to expand. Which factor related to the 'market' should be analyzed to make the most informed decision?
Given that all goat milk is currently imported into Saskatchewan, what strategic implication does this have for Rippling Hill Farms regarding their supply chain?
Given that all goat milk is currently imported into Saskatchewan, what strategic implication does this have for Rippling Hill Farms regarding their supply chain?
If Rippling Hill Farms aims to capitalize on the trend of Canadians buying local, which marketing strategy would likely be MOST effective?
If Rippling Hill Farms aims to capitalize on the trend of Canadians buying local, which marketing strategy would likely be MOST effective?
Considering the competitor analysis for Bridge City Stables, which of the following strategies would BEST help them differentiate themselves in a way that justifies a premium price?
Considering the competitor analysis for Bridge City Stables, which of the following strategies would BEST help them differentiate themselves in a way that justifies a premium price?
Based on the market analysis information provided, what is the most likely reason for Rippling Hill Farms to investigate Canadian Industry Statistics?
Based on the market analysis information provided, what is the most likely reason for Rippling Hill Farms to investigate Canadian Industry Statistics?
If Rippling Hill Farms wants to use Mintel's Consumer & Market Intelligence reports effectively, what type of information should they primarily seek?
If Rippling Hill Farms wants to use Mintel's Consumer & Market Intelligence reports effectively, what type of information should they primarily seek?
What is the most probable reason for Bridge City Stables to gather pricing information from their rivals?
What is the most probable reason for Bridge City Stables to gather pricing information from their rivals?
Considering Schumpeter's theory of creative destruction, what is a likely long-term outcome if Rippling Hill Farms successfully innovates in goat cheese production and gains significant market share?
Considering Schumpeter's theory of creative destruction, what is a likely long-term outcome if Rippling Hill Farms successfully innovates in goat cheese production and gains significant market share?
If Bridge City Stables were to implement a 'loss leader' pricing strategy on specific services, what would be the MOST likely objective?
If Bridge City Stables were to implement a 'loss leader' pricing strategy on specific services, what would be the MOST likely objective?
When determining the most effective media for advertising a new product, why is it important to analyze the strategies used by rivals?
When determining the most effective media for advertising a new product, why is it important to analyze the strategies used by rivals?
A new business is deciding on its distribution method. Which consideration regarding transaction costs is most important?
A new business is deciding on its distribution method. Which consideration regarding transaction costs is most important?
A manager is evaluating different distribution channels. What quantifiable measure would best help assess the financial impact of each option?
A manager is evaluating different distribution channels. What quantifiable measure would best help assess the financial impact of each option?
When selecting a distribution channel, which factor is most critical for businesses aiming to maintain high product quality?
When selecting a distribution channel, which factor is most critical for businesses aiming to maintain high product quality?
When deciding on a distribution channel, a company should primarily focus on options that:
When deciding on a distribution channel, a company should primarily focus on options that:
In Arvin Singh's suitcase scenario, what was the primary reason his product failed to generate excitement at the luggage industry's trade show?
In Arvin Singh's suitcase scenario, what was the primary reason his product failed to generate excitement at the luggage industry's trade show?
What key distribution-related question should Arvin Singh have considered before investing in manufacturing and showcasing his suitcase?
What key distribution-related question should Arvin Singh have considered before investing in manufacturing and showcasing his suitcase?
What is the most likely marketing-related oversight that contributed to Arvin Singh's lack of success at the trade show?
What is the most likely marketing-related oversight that contributed to Arvin Singh's lack of success at the trade show?
Flashcards
SWOT Analysis
SWOT Analysis
A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.
Strengths (SWOT)
Strengths (SWOT)
Internal attributes that give an organization an advantage.
Weaknesses (SWOT)
Weaknesses (SWOT)
Internal attributes that put an organization at a disadvantage.
Opportunities (SWOT)
Opportunities (SWOT)
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Threats (SWOT)
Threats (SWOT)
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Leveraging Strengths
Leveraging Strengths
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Mitigating Weaknesses
Mitigating Weaknesses
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Countering Threats
Countering Threats
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Internal Analysis
Internal Analysis
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External Analysis
External Analysis
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Human Resources (Strengths/Weaknesses)
Human Resources (Strengths/Weaknesses)
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Financial Resources (Strengths/Weaknesses)
Financial Resources (Strengths/Weaknesses)
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Physical Resources (Strengths/Weaknesses)
Physical Resources (Strengths/Weaknesses)
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Other Resources (Strengths/Weaknesses)
Other Resources (Strengths/Weaknesses)
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Market Trends and Events (Opportunities/Threats)
Market Trends and Events (Opportunities/Threats)
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Government Policy/Regulation (Opportunities/Threats)
Government Policy/Regulation (Opportunities/Threats)
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Strategic Management
Strategic Management
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Strategic Decisions
Strategic Decisions
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Strategy
Strategy
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Strategic Management Process
Strategic Management Process
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Business Environment
Business Environment
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Opportunities and Threats
Opportunities and Threats
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Market Strategy
Market Strategy
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Importance of Market Strategy
Importance of Market Strategy
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Strategy Formulation
Strategy Formulation
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Value Chain
Value Chain
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Driving Force: Value Chain
Driving Force: Value Chain
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Value Chain Benefits
Value Chain Benefits
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Labor Shortage Strategy
Labor Shortage Strategy
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Demand Increase Strategy
Demand Increase Strategy
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Market Segmentation
Market Segmentation
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Targeting
Targeting
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Positioning
Positioning
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Schumpeter Innovation Theory
Schumpeter Innovation Theory
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Creative destruction
Creative destruction
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Cost Leadership
Cost Leadership
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Benefit Leadership
Benefit Leadership
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Search Goods
Search Goods
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STP Model
STP Model
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STP Model Focus Areas
STP Model Focus Areas
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Product Differentiation
Product Differentiation
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Product Differentiation Elements
Product Differentiation Elements
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Differentiation & STP
Differentiation & STP
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Imperfect Substitutes
Imperfect Substitutes
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Hotelling's Model
Hotelling's Model
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Horizontal Differentiation
Horizontal Differentiation
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Preference shift with age
Preference shift with age
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Equal Prices, Horizontal Diff.
Equal Prices, Horizontal Diff.
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μ & λ in Differentiation
μ & λ in Differentiation
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Vertical Differentiation
Vertical Differentiation
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Equal Prices, Vertical Diff.
Equal Prices, Vertical Diff.
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Strong Differentiation
Strong Differentiation
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Penetration Pricing
Penetration Pricing
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Skimming Pricing
Skimming Pricing
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Goal (Vision & Mission) Setting
Goal (Vision & Mission) Setting
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Analyze Environment
Analyze Environment
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Generate Strategy
Generate Strategy
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Implement Strategy
Implement Strategy
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Evaluate Strategy
Evaluate Strategy
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Loss Leader
Loss Leader
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What the Market Will Bear
What the Market Will Bear
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SMART Objectives
SMART Objectives
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Breakeven Point
Breakeven Point
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Markup
Markup
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Markup Percentage
Markup Percentage
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What is Market Analysis?
What is Market Analysis?
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Past Performance (Market Analysis)
Past Performance (Market Analysis)
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The Market (in Market Analysis)
The Market (in Market Analysis)
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Competition (Market Analysis)
Competition (Market Analysis)
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Customers (Market Analysis)
Customers (Market Analysis)
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Target Market (Market Analysis)
Target Market (Market Analysis)
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Marketing Mix
Marketing Mix
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External conditions (market)
External conditions (market)
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SK Specialty Cheese Consumption (2007)
SK Specialty Cheese Consumption (2007)
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Goat Milk in Saskatchewan
Goat Milk in Saskatchewan
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Canadian 'Buy Local' Percentage
Canadian 'Buy Local' Percentage
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Rippling Hill Farms Market Size
Rippling Hill Farms Market Size
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Sources of Market Information
Sources of Market Information
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Goal of Market & Competition Study
Goal of Market & Competition Study
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Rivals price
Rivals price
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Bridge City Stables competitor
Bridge City Stables competitor
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Rival Pricing
Rival Pricing
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Dominant Brand
Dominant Brand
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Product Design Advantage
Product Design Advantage
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Cost-Based Pricing
Cost-Based Pricing
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Market-Based Pricing
Market-Based Pricing
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Price Discrimination
Price Discrimination
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Market Power
Market Power
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Prevent Resale
Prevent Resale
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1st Degree Price Discrimination
1st Degree Price Discrimination
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2nd Degree Price Discrimination
2nd Degree Price Discrimination
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3rd Degree Price Discrimination
3rd Degree Price Discrimination
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Complete Discrimination
Complete Discrimination
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Direct Segmentation
Direct Segmentation
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Indirect Segmentation
Indirect Segmentation
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Two-part tariff
Two-part tariff
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Two-Part Tariff
Two-Part Tariff
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Place (Marketing)
Place (Marketing)
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Target Market (Geography)
Target Market (Geography)
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Channels of Distribution
Channels of Distribution
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Transaction Costs
Transaction Costs
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Quantify Decision Impacts
Quantify Decision Impacts
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Benefit/Cost Ratio (BCR)
Benefit/Cost Ratio (BCR)
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Competitor Channel Analysis
Competitor Channel Analysis
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Sell Direct
Sell Direct
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Study Notes
Strategic Management
- Strategic management involves formulating, performing, and evaluating strategies.
- This leads to a competitive advantage and improved organizational performance.
- It's about decision making with lasting consequences for a business.
- Decisions set a business trajectory and are costly to reverse.
- Strategic management impacts the whole organization.
- Strategic management is directly connected to profitability, business performance and sustainability.
- Owner-operators or senior management mostly implement this long-term practice.
Strategic Management Process
- In the first step, Develop vision and mission statements and identify the organizations objectives and strategies.
- Perform an internal and external environmental analysis to understand the competitive advantage.
- Formulate strategies based on the competitive advantages determined in the environmental analysis.
- Implement the strategy.
- Evaluate the results of the strategy.
The Environment
- External conditions and forces influence the organization.
- Resources, opportunities, and threats exist in the general environment.
- The industry influences strategic decisions.
Strategic Management Tools & Techniques
- Gap Analysis
- VRIO Analysis
- Four Corners Analysis
- Value Chain Analysis
- SWOT Analysis
- Porter's 5 Forces
- PESTEL Analysis
- Cost Benefit Analysis
SWOT Analysis
- Strengths, Weaknesses, Opportunities and Threats
- Internal analysis includes Strengths and weaknesses on management, human, physical & financial resources, and the other resources that come from that include design, patentes product, etc
- External analysis comprises the externally generated customers, market trends, government policy, and the competition with all related factors.
SWOT Analysis: On-Farm Biodiesel Production
- Strengths include a good location, high-tech equipment, and large storage capacity for on-farm biodiesel production.
- Limited labor is a weakness.
- Low capital investment is a strength because it costs less that physical resources if cashflows become low
- A weakness includes the high cost of your inputs
- High diesel costs and green movement, and the livestock Industry, are opportunities when marketing meal.
- Threats include high competition from diesel use, new technology and larger biodiesel producers.
Strengths and Weaknesses (Internal)
- Human resources includes their experience, education and training, and how many people are available.
- Financial resources include liquidity, solvency, profitability and financial efficiency, and how dependent profits are on one product.
- Look at resource quality and availability, lack of nutrients in land, the products output, and the storage and capacity limits.
- Other resources include product design and any patents in place.
Opportunites and Threats (External)
- Look at new products, existing product renewals.
- Note any approved meal for chicken feed.
- Are there any climate change mitigation opportunities?
- Customers tastes and preferences are of note.
- Competition is the analysis via Porters 5 forces.
- Weather influences input prices and supply levels
Class Activity: SWOT Analysis for COCACOLA
- Strengths are a strong brand identity, extended global reach, robust distribution network, customer loyalty and a dominant market share.
- Weaknesses are aggressive competition with Pepsi and low product diversification.
- Threats include water usage and packaging controversies, as well as the health concerns of consumers.
Industry Rivalry
- This is the battle or competition for market share.
- Price competition erodes the margin.
- The alternate to that is non price competition like service increases or advertising offensives.
- This is when there are many sellers (market structure), some firms have advantages, capacity is high, the products are not well differntiated, and rates and conditions are unclear.
Porter's 5 Forces
- The intensity of competition depends on basic competitive forces.
- What the barriers to entry are by entrants.
- The economies of scale and loyalty by brand.
- Capital requirements of market entrance.
- Existing competitive rivalry. Bargaining power of suppliers, The ability to substitute etc.
Class Activity Burger King
- Discuss the industry rivals,
- Consider the thew entrants and their possible threatss
- Assess the Bargaining power of supplier & buyer as well as the overall threat of potential substitutions
Value Chain & Supply Chain
- The value chain begins when suppliers align to source the required products.
- These components advance through product development, and innovation
- Following development they go through planning for sale to the customer
- Finally the final product proceeds to the customer
- The supply chain begins with the material suppliers logistics and production
- The finished product continues to sales and marketing and finally also ends with the customer
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Description
Strategic management involves strategy formulation, implementation, and evaluation. The aim is gaining a competitive edge and improving performance. Decisions made have lasting impacts and are challenging to reverse, often led by senior management.
