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Questions and Answers
What do opportunities refer to in a business context?
In the SWOT framework, what does the ST strategy focus on?
What is a key recommendation for conducting a SWOT analysis?
Which of the following is a common pitfall in SWOT analysis?
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What does the WT strategy involve in the SWOT matrix?
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Which aspect should be avoided when identifying factors in a SWOT analysis?
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What is a key principle in evaluating strategic alternatives in the SWOT analysis?
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When developing strategic factors in a SWOT analysis, what should be prioritized?
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What is essential for a firm to achieve a sustainable competitive advantage?
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Which school of thought emphasizes creating a distinctive market position?
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What is a key characteristic of the Planning framework in strategy formulation?
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What does the Learning, Configuration school suggest about strategy?
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What is NOT a challenge faced by multinational enterprises?
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According to the Resource-Based View, what is critical for achieving competitive advantage?
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What approach does the Positioning school suggest for strategy formation?
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What is the main focus of the Planning school of thought in strategy?
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What is the primary purpose of defining the market for a firm?
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Which factor is NOT considered when segmenting the market based on customer needs?
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What does the targeting step in market definition involve?
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What should a positioning statement primarily communicate?
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Why is a clear value proposition important for targeted segments?
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What does effective segmentation allow firms to do?
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Which of the following descriptions accurately reflects 'Jobs to be done'?
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In market targeting, what is a characteristic of less attractive segments?
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What must a segment pass in order to be selected for targeting?
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What is the first step in the systematic approach to developing a customer profile?
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What does the prioritization of jobs, pains, and gains help determine?
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What approach blends traditional market research with customer-oriented techniques?
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What should be included in developing customer profiles?
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What happens if a segment does not meet the targeting criteria?
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Which factor is NOT typically considered when scoring segments for targeting?
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What do 'pains' refer to in the context of identifying customer needs?
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What is the first step in the 'jobs to be done' analysis?
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Which component is NOT included in the Business Model Canvas?
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What is the primary purpose of prioritizing pains and gains?
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How does the firm's business model support its strategy?
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Why is understanding the VRIO framework essential in a business model?
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What role do key partners play in a business?
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Which of the following is NOT a focus area when refining products and services?
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What does the 'jobs to be done' analysis help in articulating?
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Study Notes
Strategy
- Competitive advantage is achieved through strategic positioning.
- Multinational enterprises face unique challenges due to cultural, political, legal, and technological variations.
- Strategies can be tailored through local adaptation or standardized approaches to exploit economies of scale.
- Sustainable competitive advantage is achieved through valuable, rare, inimitable, and non-substitutable resources.
Schools of thought in Strategy
- Planning (Ansoff): Prescriptive approach emphasizing systematic planning processes.
- Positioning (Porter): Focuses on creating a distinctive market position through analytical and rational deliberations.
- Resource-Based View (Barney): Formal and prescriptive approach emphasizing the development and execution of strategies based on unique and valuable resources.
- Learning, Configuration (Mintzberg): Descriptive approach that acknowledges the emergence of strategy organically and the need for flexibility.
SWOT Analysis
- Strengths-Opportunities (SO): Leverage strengths to capitalize on opportunities.
- Weaknesses-Opportunities (WO): Improve weaknesses to take advantage of opportunities.
- Strengths-Threats (ST): Use strengths to minimize the impact of threats.
- Weaknesses-Threats (WT): Address weaknesses to mitigate threats.
Common Pitfalls and Recommendations
- Professionalism and precision: Focus on four to five key factors per category that substantially impact the firm.
- Avoid redundancy: Ensure factors are uniquely classified without overlap.
- Actionability: Factors should be actionable or lead to actionable strategies.
- Clear distinction: Maintain a clear distinction between internal (strengths and weaknesses) and external (opportunities and threats) factors.
Global and Local Positioning
- Define the market: Establish the boundaries and characteristics of the target market.
- Identifying customer needs: Segment the market based on varying customer needs, identified through market research.
- Jobs to be done: Products fulfill certain jobs, which might vary among customers.
- Targeting: Select market segments that align with the firm's capabilities and strategic goals.
- Develop a positioning and value proposition: Create a clear positioning statement that differentiates the firm's offerings from competitors.
Developing a Customer Profile
- Select a Customer Segment: Choose a segment based on demographics or geographic data.
- Identify Customer Jobs: Determine customers' goals and tasks.
- Identify Pains and Gains: Understand customer challenges and desired benefits.
- Prioritize Jobs, Pains, and Gains: Distinguish between essential and "nice-to-have" needs.
- Develop Customer Profiles: Create in-depth profiles using the "jobs to be done" analysis.
Value Proposition
- List products and services: Identify all offerings, including tangible and intangible benefits.
- Identify pain-relievers: Understand how offerings address negative outcomes and risks.
- Specify gain-creators: Describe how offerings create desirable outcomes and benefits for customers.
- Prioritize based on importance: Focus on the most critical pains and gains and tailor them to different customer groups based on segmentation.
Business Model Canvas
- Developed by Osterwalder et al., it helps visualize the key business elements including customer segments, value propositions, communication and distribution channels, customer relationships, key resources, activities, partnerships, revenue streams, cost structures, and profits.
- Emphasizes understanding the VRIO framework (valuable, rare, costly to imitate, and organized) to ensure that resources are strategically leveraged.
Key partners
- External companies, agencies, or individuals that contribute resources or activities essential to a business.
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Description
This quiz explores various strategies used by multinational enterprises to achieve competitive advantage. It covers schools of thought in strategy such as Planning, Positioning, Resource-Based View, and Learning and Configuration approaches. Test your understanding of how these theories can be applied in real-world scenarios.