Wal-Mart's Point-of-Sale Analytics and Vendor Management

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Questions and Answers

According to the passage, what does a company need to become coherent?

  • A clear understanding of how it creates value for customers
  • A system of three to six capabilities that support its strategic purpose
  • A focused strategic purpose or 'way to play'
  • All of the above (correct)

Which of the following is NOT identified in the passage as a 'way to play' for successful companies?

  • The value chain optimizer
  • The market disruptor (correct)
  • The innovator
  • The low-cost provider

What does the passage say is not enough to produce a 'coherence premium'?

  • An aligned product and service portfolio
  • A focused strategic purpose
  • A capability in isolation (correct)
  • A capabilities system

What is the 'engine of value creation' according to the passage?

<p>A system of three to six capabilities (D)</p> Signup and view all the answers

What does the passage say happens when firms cultivate a 'system of mutually reinforcing capabilities'?

<p>Their competitive advantage becomes more powerful (C)</p> Signup and view all the answers

What question does the passage say successful companies have a clear understanding of?

<p>All of the above (D)</p> Signup and view all the answers

What was the performance of ConAgra during the years studied (2002 to 2007)?

<p>Subpar (D)</p> Signup and view all the answers

What was the focus of Sara Lee's product portfolio in the past?

<p>Diverse, ranging from bakery to underwear to shoe polish (C)</p> Signup and view all the answers

How has Sara Lee's financial performance been described?

<p>Below average (B)</p> Signup and view all the answers

What has enabled companies to consistently outexecute their rivals and capture top-line growth?

<p>Focusing on capabilities, day in and day out (D)</p> Signup and view all the answers

How does coherence focus strategic investment?

<p>It directs capital, time, and talent to activities, products, and businesses that will extend their lead (C)</p> Signup and view all the answers

What has Sara Lee done in the past 10 years to improve its performance?

<p>Undertaken three major restructurings and begun to tap into the coherence premium (C)</p> Signup and view all the answers

What can coherence in companies lead to?

<p>Efficiencies of scale (D)</p> Signup and view all the answers

What is one of the benefits of applying capabilities across a larger array of products and services?

<p>Ability to afford more capabilities (B)</p> Signup and view all the answers

How does coherence create alignment between strategic intent and day-to-day decision making?

<p>By ensuring everyone understands what's important (A)</p> Signup and view all the answers

What kind of leadership does it take to pursue a capabilities-driven strategy?

<p>Extraordinary leadership (C)</p> Signup and view all the answers

What do companies create by aligning a way to play, an integrated capabilities system, and the right products and services?

<p>Superior value (B)</p> Signup and view all the answers

What can coherence in companies lead to according to the text?

<p>Alignment between strategic intent and decision making (C)</p> Signup and view all the answers

What did P&G do to reconfigure its business model?

<p>Divested assets that did not draw on its distinctive capabilities (A)</p> Signup and view all the answers

What was the key focus of R.J. Reynolds' leadership team after the decline of the tobacco business?

<p>Cutting operating costs through improved retail merchandising (B)</p> Signup and view all the answers

What does the passage say about the 'clean and uncluttered ideal' of a company with an aligned strategy, capabilities system, and product/service portfolio?

<p>It is a valuable journey that companies should continually work towards (D)</p> Signup and view all the answers

What does the passage suggest about the benefits of coherence around capabilities within a company?

<p>It enables stronger leadership and better decision-making (C)</p> Signup and view all the answers

What does the passage suggest is the most common way for companies to achieve coherence?

<p>Establishing pockets of coherence within divisions (D)</p> Signup and view all the answers

What did the 1998 Tobacco Master Settlement Agreement in the US lead to for R.J. Reynolds?

<p>The company's leadership team focused on cutting operating costs (C)</p> Signup and view all the answers

What allows Wal-Mart to continually tailor its product assortment to local consumption trends?

<p>Its world-class point-of-sale analytics (D)</p> Signup and view all the answers

What does Wal-Mart's "way to play," or market approach, and capabilities system ensure?

<p>That every product and service it sells fits with its capabilities (B)</p> Signup and view all the answers

Why does Wal-Mart not sell big-ticket items like furniture or large appliances?

<p>Because its capabilities would not create a cost advantage for those products (D)</p> Signup and view all the answers

Where will you not find a Wal-Mart store?

<p>On Fifth Avenue or the Champs-Elyses (A)</p> Signup and view all the answers

What is a capability, according to the text?

<p>Both a and c (C)</p> Signup and view all the answers

What might a capability be, according to the text?

<p>All of the above (D)</p> Signup and view all the answers

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