Diploma Exam.docx

**International Business Management Q&A** **1. Present and explain the structure of the Business Model Canvas.** Key Partners -- Who is helping you achieve your business goal? Key Activities -- What are the activities that would enable you to deliver your value proposition? Key Resources -- Who/...

**International Business Management Q&A** **1. Present and explain the structure of the Business Model Canvas.** Key Partners -- Who is helping you achieve your business goal? Key Activities -- What are the activities that would enable you to deliver your value proposition? Key Resources -- Who/what are your key resources? What value do you possess and can use? Customer Segments -- Who is your customer? Value Propositions -- What makes you better than others? Channels -- How and where will you communicate your value proposition? Customer Relationships -- How will you interact with your customers? Cost Structure -- What are your costs? How are you going to divide them? Revenue Streams -- How and where from will you make money? **2. What is the concept of breakthrough innovation and disruptive innovation?** Breakthrough Innovations -- significant advancements or discoveries that create entirely new markets or revolutionize existing ones. Example: Apple's iPod line. These innovations are characterized by their ability to push the boundaries of technology, redefine industries, and offer unprecedented value to customers. Disruptive Innovations -- innovations that start in niche markets or with simple applications at the bottom of a market and eventually move upmarket, displacing established competitors. Example: Netflix. These innovations often offer simpler, more affordable, or more convenient solutions that appeal to a broader audience over time. **3. Present the concept of value innovation and a four-action strategy for building a new market space.** Eliminate: Identify and eliminate factors that the industry takes for granted but add no value to the customers. Reduce: Determine which factors should be reduced well below the industry standard to cut costs and complexity. Raise: Identify factors that should be raised well above the industry standard to enhance customer value. Create: Introduce new factors or features that the industry has never offered, to create new demand and differentiate from the competition. **4. Present the concept of the knowledge illusion or the leader's dilemma in forecasting concepts.** This is characterized by the tension between the need to make confident forecasts and the uncertainty & complexity of predicting future events, which even with robust data and sophisticated models, can be unreliable. Leaders are often expected to provide clear and confident forecasts to motivate teams and reassure stakeholders. Leaders might fall into the trap of overconfidence, overestimating the accuracy of their predictions. **5. Networks in strategic management. Explain the notion and types of inter-organizational networks.** Inter-organizational networks refer to collaborative relationships between two or more organizations aimed at achieving mutual benefits through shared resources, capabilities, and goals. Strategic Alliances: Formal agreements where organizations cooperate for mutual benefit without merging their assets or legal identities. Joint Ventures: Partnerships creating a separate legal entity to pursue a specific business opportunity together. Supply Chain Networks: Collaborative networks involving companies and suppliers working together to deliver goods and services efficiently. Industry Clusters: Geographic concentrations of interconnected companies and institutions in related industries, fostering collaboration and competitiveness. Professional Associations: Networks of organizations within a specific industry or profession, promoting common interests and standards. **6. The Black Swan theory and its characteristics. Give examples of phenomena that can be classified as Black Swans.** The theory refers to rare and unpredictable events that have severe and widespread consequences. Characteristics: extreme rarity, high impact, retrospective predictability, influence on beliefs. Examples: The 2008 global financial crisis, triggered by the collapse of the Lehman Brothers; 2011 East Japan earthquake.  **7. The Lean Startup method. What innovative tools for creating new businesses do you know?** Minimum viable product (MVP) -- the version of a new product, which allows a team to collect the maximum amount of knowledge about customers with the least possible effort. Continuous deployment -- a process where all, let's say, code, that is written for an application, is immediately deployed into production, thanks to feedback from customers. Split or A/B test -- an experiment in which different versions of a product are offered to customers at the same time. Actionable metrics -- metrics, which present \"the rosiest picture possible\" but do not accurately reflect the key drivers of a business. Example: \"the number of new users gained per day\". Pivot -- data-driven decisions about whether to change course, or stick with the current strategy. **8. What is a competitive advantage? When it makes sense to focus the company\'s activity in a selected segment?** Competitive advantage refers to the attributes that allow a company to outperform its competitors. Focusing the company\'s activity in a selected segment is advantageous when there are clear market opportunities, competitive advantages to leverage, efficient resource allocation, and effective risk management strategies in place. **9. Explain the long tail strategy and give examples of companies that use the long tail in their strategic activities.** Long Tail -- a business model that focuses on selling a large number of unique items in relatively small quantities, rather than selling a small number of popular items in large quantities. Elements: wide variety of products, lower costs per product, personalization, aggregate demand. Examples: Netflix & Spotify. **10. What is the sharing economy? How does it relate to the decline of capitalism?** The sharing economy is an economic model where individuals or businesses share access to goods, services, resources, or skills, typically facilitated by digital platforms. Examples: Uber & Airbnb It constitutes the decline of capitalism thanks to the shift from ownership to, simply, access. **11. Explain the notion of the \"problem of the second half of the chessboard\" and how it is related to the organization\'s business strategy.** In the game of chess, the chessboard has 64 squares. The \"problem of the second half of the chessboard\" refers to the exponential growth pattern that arises when doubling something repeatedly. An organization has to be able to handle exponential growth and risk management. **12. What is the structure of inequality and global wealth inequality in the 21st century?** High concentration: A significant portion of wealth is held by a small fraction of the population. Disparities: There are substantial gaps in wealth distribution between countries and within them. Factors: Technological advancements, globalization, and varying economic policies contribute to these inequalities.  **13. What is the iterative process of creating a business concept?** **Idea -\> Research -\> Concept -\> Prototype -\> Feedback -\> Launch** Idea Generation: Generate and brainstorm business ideas. Research and Analysis: Research market demand, competition, and feasibility. Concept Development: Refine and develop the chosen idea into a viable business concept. Prototype or MVP: Create a prototype or minimum viable product to test the concept. Feedback and Iteration: Gather feedback, iterate on the concept based on insights. Validation: Validate market fit, scalability, and financial viability. Launch and Scale: Launch the business concept and scale operations appropriately. **14. Characterize and explain the principles of Agile Operations as a method of managing an organization.** Agile Operations is a method of managing an organization that emphasizes flexibility, adaptability, and responsiveness to change. Customer-Centricity: Focus on understanding and meeting customer needs through continuous collaboration and feedback. Iterative and Incremental Development: Break down work into smaller, manageable tasks or iterations that deliver value. Cross-Functional Teams: Form multidisciplinary teams that include diverse skills and perspectives. Adaptability and Flexibility: Embrace change as a natural part of the process. Continuous Improvement: Foster a culture of continuous learning and improvement. Transparency and Communication: Maintain open communication channels within teams and with stakeholders. Empowerment and Accountability: Empower teams to make decisions and take ownership of their work. Value Delivery: Prioritize delivering value to customers and stakeholders. **15. What is the Continuous Improvement process and (15.1.) Lean Process Development?** Continuous Improvement Process (CIP) is a systematic approach to making incremental changes and enhancements to processes, products, or services over time to achieve ongoing improvements in efficiency, quality, and effectiveness. Identify opportunities: Find areas needing improvement. Set objectives: Define specific goals. Plan and implement changes: Develop action plans and improve. Monitor and measure: Track progress using metrics. Review and learn: Assess outcomes and adjust as needed. Sustain improvements: Embed a culture of ongoing improvement. **15.1. What is the Lean Process Development?** The Lean Process Development is a systematic method for optimizing processes by eliminating waste, improving flow, and maximizing value delivery to customers. Value: Define value from the customer\'s perspective. Identify activities that directly contribute to meeting customer needs. Value Stream: Map the entire value stream for a product or service, visualizing all steps from raw materials to the end customer. Identify and eliminate non-value-added steps (waste). Flow: Create smooth and efficient flow through processes by minimizing interruptions and reducing batch sizes. Pull: Establish pull-based systems where work is initiated based on customer demand rather than pushing work through based on production capacity. Perfection: Strive for continuous improvement and perfection. Respect for people: Foster a culture of respect. **General Management Q&A** **1. List and discuss the basic functions of management.** Planning: Setting goals, forecasting the future, developing strategies. Organizing: Gathering resources, arranging tasks, defining responsibilities. Leading: Directing and motivating employees, using interpersonal skills to guide team members. Controlling: Monitoring and evaluating progress, measuring and correcting the performance. **2. Globalization as the process shaping the current activity in world markets.** Factors: Market expansion, supply chains, competition, labor, cultures  **3. Structure and characteristics of managerial competencies. Give characteristics of 3 structures of your choice.** Technical Knowledge: Specific expertise and understanding. Skills: Proficiency in using tools and techniques effectively. Abilities: Capacity to perform job-specific functions. Interpersonal Communication: Effective verbal and written interaction skills. Leadership: Ability to influence, motivate, and guide others. Teamwork: Competence in collaborating and working well with others. Conceptual Strategic Thinking: Ability to plan long-term goals and strategies. Problem-Solving: Identifying issues and generating solutions. Visionary Leadership: Capability to inspire and guide futuristically. **4. Entrepreneurship -- the notion, its characteristics and conditions for its development in modern economies.** Entrepreneurship: the process of setting up a business. Characteristics: innovation, risk-taking, proactiveness, resourcefulness, vision, adaptability. Conditions for development: education, training, favorable market dynamics, capital access. **5. Competitiveness, competitive potential and competitive advantage -- notions and determinants.** Competitiveness Notions: The ability of a company, country, or economy to compete effectively in the market. Determinants: Efficiency in production, continuous improvement. Competitive potential Notions: The capacity of an entity to develop and sustain competitiveness. Determinants: Knowledgeable workforce, strong leadership, access to capital and technology. Competitive advantage Notions: The attributes that allow an entity to outperform its rivals. Determinants: Offering unique products or services, producing at a lower cost, good management of the supply chain. **6. Business ethics -- manifestation of unethical practices and preventing measures.** Practices: fraud, exploitation, corruption. Prevention: code of ethics, training, legal compliance. **7. IT systems and their use in organizational management.** Customer Relationship Management (CRM): Manages interactions with current and potential customers. Enhances customer service, tracks sales, and improves customer retention. Human Resource Management Systems (HRMS): Manages employee data, payroll, recruitment, and performance. Automates HR processes, improves employee management, and ensures regulatory compliance. Financial Management Systems (FMS): Manages financial transactions and reporting. Automates accounting processes, ensures financial accuracy, and supports budgeting. **8. Market environment and its role for an organization.** Factors: economic, political, social, technological, competitive, demographic. Roles: Understanding market conditions to identify opportunities and threats. Aligning business objectives with market dynamics. Anticipating market-related risks. Efficiently deploying resources based on market needs. Leveraging market insights to gain an edge over competitors. **9. Factors influencing consumer\'s behavior in the market. Discuss one of them.** Factors: cultural, personal, psychological, social. One of them -- Social: A person's actual or wannabe-future role and status in their social group affect their purchasing decisions.  **10. Notions, components and use of the SWOT and the TOWS analysis.** SWOT is used to identify and analyze internal and external factors that can impact an organization. Strengths: strong brand, loyal customer base, proprietary technology. Weaknesses: high debt, inadequate supply chain, skill gaps. Opportunities: market growth, technological advancements, regulatory changes. Threats: economic downturns, increased competition, changing consumer preferences. Use: strategic planning, decision making, performance improvement, risk management. TOWS is an extension of SWOT, focusing on generating strategic options. Threats: Assessing external threats and addressing them with internal strengths and weaknesses. Opportunities: Evaluating external opportunities and leveraging them using internal strengths and weaknesses. Weaknesses: Analyzing internal weaknesses in the context of external threats and opportunities. Strengths: applying internal strengths to mitigate threats and exploit opportunities. Use: creates actionable strategies by cross-referencing the internal and external factors. **11. Give one traditional and one contemporary definition of marketing. Give examples.** Traditional definition: Marketing is the process of promoting and selling products or services, including market research and advertising. Example: 1950s Coca-Cola's print advertisements. Contemporary definition: Marketing is the activity & set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, society. Example: Modern Coca-Cola's social media presence and influencer partnerships. **12. List organizational methods and techniques. Describe a selected method and technique.** Methods: Hierarchical Structure, Matrix Structure, Flat Structure. Techniques: SWOT, Kaizen, Mind Mapping. Selected Method -- Hierarchical: Organizing employees in a pyramid-like structure where each level reports to the one above it. Selected Technique -- Kaizen: Continuous improvement through small, incremental changes in processes, aiming for efficiency and quality enhancement. **13. What are the components of a marketing plan? Discuss shortly the components and their purpose.** Executive Summary: a brief overview of the entire marketing plan, highlighting the main objectives, key strategies, expected outcomes, key performance indicators (KPIs). Market Analysis: evaluating of the current market, assessing industry trends, analyzing customer needs and behaviors. Marketing Strategy: product positioning, pricing strategies, distribution channels, promotional tactics. Marketing Mix: advertising campaigns, digital marketing efforts, content creation, events. Budget Plan: outline of the financial resources allocated to each marketing activity, the timeline for their execution, effective and efficient use of resources. **14. Pricing strategies and their determining factors.** Cost-Based Pricing: Determined by production & distribution costs. Competitive-Based Pricing: Influenced by competitors\' prices. Value-Based Pricing: Based on perceived value to customers. Factors: costs, competitors, perceived value, demand, market positioning. **15. Product and its life cycle in the market -- description of its stages and its implications for a company.** 1\. Introduction -- Product launch, low sales, high promotion costs. Implications: Focus on awareness, heavy marketing, low/no profits. 2\. Growth -- rapid sales increase, market acceptance. Implications: Expand distribution, improve product features, increase profits. 3\. Maturity -- sales peak, market saturation, intense competition. Implications: Maximize profit while defending market share, price reductions, product diversification, efficiency improvements. 4\. Decline -- sales decline, market contraction. Implications: Reduce costs, discontinue weak products, focus on most profitable segments, consider product modifications or market exit. **16. List the tools of integrated marketing communication.** Tools: advertising, social media, email, influencers, sponsorships. **17. Classification of costs in accounting.** Costs: fixed, variable, direct, indirect, product. **18. Functions and structure of a business plan.** Functions: strategy, financial planning, attracting investors, performance monitoring, risk management. Structure: executive summary, company description, market analysis, organization, products/services, marketing & sales strategy, funding request, projections, appendix. **19. The difference between vision, mission and strategy of an organization. Give examples of vision and mission.** Vision: a long-term goal. Example: Amazon's customer-centric company's future. Strategy: the overall plan to achieve it. Mission: the primary objectives. Example: Google's plan to organize the world's information. Strategy: the overall plan to achieve it. **20. The essence of enterprise strategy and types of strategies.** Enterprise strategy -- the comprehensive plan to achieve long-term goals, align resources, create competitive advantage. Types: corporate, business, growth, innovation, competitive, global. **21. The meaning and essence of project management in contemporary organizations.** Meaning: the application of processes, methods, skills, knowledge, and experience to achieve project objectives within parameters. Essence: ensures projects are completed on time, within budget, and to the required quality standards, while managing risks, resources, stakeholder expectations. **22. Functions and tools of human resource management (HRM).** Functions: recruitment, training, legal compliance, safety. Tools: administration software, analytics tools, performance management software **23. Basic motivation theories and instruments.** Maslow\'s Hierarchy of Needs -- individuals progress through these needs sequentially, starting with physiological needs at the base and moving toward self-actualization at the pinnacle. Expectancy Theory -- individuals are more likely to be motivated if they believe their effort will result in successful performance. Motivation instruments: money, rewards, recognition, opportunities. **24. Classical and contemporary models of organizational structures. Give examples.** Classical models: functional, divisional, matrix. Functional example: Nestlé -- departments are organized based on functions such as marketing, finance, research and development, operations, human resources. Contemporary models: flat, network, team-based. Team-based example: Spotify's "Squads" -- each Squad is a small, autonomous team responsible for a specific area of development or feature within the company\'s product. **25. The basic management styles used by managers.** Autocratic: managers make decisions without much input from subordinates. Democratic: involves managers seeking input from team members before making decisions. Laissez-Faire: managers delegate tasks and decision-making authority to their team members, giving them independence.  **26. Please discuss the principles of functioning of market economy.** Private Property Rights: Individuals and businesses have the right to own, control, and transfer their property and resources. Freedom of Enterprise: Individuals and businesses have the freedom to start, operate, and expand their businesses with minimal government intervention. Competition: Multiple producers and sellers compete with each other in the market to offer goods and services. Competition helps regulate prices, improve quality, and foster innovation. Self-Interest: Individuals and businesses act in their own economic self-interest to maximize profits, minimize costs, and pursue personal satisfaction. Consumer Sovereignty: Consumers have the power to determine which goods and services are produced through their purchasing decisions. Producers respond to consumer demand by adjusting their production accordingly. Market Mechanism: Prices are determined by supply and demand forces in the market. Changes in prices signal producers to increase or decrease production based on consumer demand. **27. Please discuss the basic directions of the Balcerowicz Plan and its social and economic impact.** Directions: price liberalization, fiscal discipline, monetary reform, privatization, trade liberalization. Social impact: initial increase in unemployment due to restructuring, income inequality, transition challenges. Economic impact: reduced inflation, stabilization of prices, increased foreign investment, increased economic growth, privatization. **28. The impact of taxes, government grants and loans on operating a business.** Taxes: reduce profits, influence pricing & cost structure, affect cash flow. Grants: provide financial support, promote innovation & growth, reduce costs. Loans: provide capital for investment, influence debt levels, affect financial flexibility. **29. The effects of introducing protective customs tariffs and minimum and maximum prices.** Tariffs: protect domestic industries, increase prices for imported goods, encourage local production. Min. prices: ensure price stability, protect producers\' income, can lead to surpluses if set too high. Max. prices: prevent price gouging, ensure affordability for consumers, can lead to shortages if set below market equilibrium. **30. Please indicate short- and long-term effects of inflation.** (Short-term) Decreased Purchasing Power: Consumers can buy fewer goods and services with the same amount of money. (Short-term) Cost-Push Inflation: Increased costs of production lead to higher prices for goods and services. (Long-term) Reduced Savings: Savings and fixed incomes lose value over time as prices rise. (Long-term) Interest Rates: Inflation can lead to higher interest rates, affecting borrowing costs and investment decisions.