BADM 449 Exam 2 Review Sheet PDF

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Exam 2 Review sheet Professor Shah...

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STRATEGIC MANAGEMENT EXAM #2 REVIEW SHEET Please review class notes and all articles and textbook chapters as you prepare for the exam. Details from specific cases will not be included on the exam. KEY TOOLS & FRAMEWORKS General Frameworks  Structure-conduct-performance (Economics/industrial organization)  Resource-based view Tools     

Five Forces Model Value Chain VRIO/VRIS Strategic Coherence Map (SWOT)

You should:  Know when to apply each framework and what each framework is used for  Know how to apply each framework to a particular industry and/or firm. If you are given information about a firm or industry, you should be able to “fill in” the framework by organizing and presenting the information appropriately  Based on your framework, you should be able to offer some suggestions to a firm that will enable the firm to improve its strategic position and/or improve its operations 1. o This requires creativity and practice. You’ll get better at this as you progress in your careers and spend more time working in organizations. Keep asking yourself: how can I help improve the way we do things? My goal in class is to get you to begin thinking in this way – that’s why we do so many cases! It’s only by seeing real situations and sifting through information that you can begin to build this skill. o This requires the ability to thoughtfully analyze a situation, identify the problem(s) the firm is facing and the causes of those problems, offer suggestions for improvement, and think critically about the effects that your suggestion will have on the firm’s strategy and operations o Think of yourself as a doctor: you need to identify what illness ails you patient and take steps to improve your patient’s health and the ability of your patient to achieve his or her goals. KEY CONCEPTS  Overview (Chapters 1 & 2)  Analyzing the external environment (Chapter 3) o Structure-Conduct-Performance framework o 5 Forces analysis o Six segments of the external environment (PESTEL framework)  Internal Analysis: Resources and capabilities (Chapters 4 & 5) o Intangible vs. tangible assets o Four criteria for sustainable competitive advantage o Economic Value Creation

1 Suggestions for improving specific operations will require you to draw from what you have learned in other courses. 1

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o Balanced Scorecard o Triple Bottom Line Business-level strategy (Chapter 6) o Describe each of the five primary business-level strategies: cost leadership, differentiation, focused cost leadership, focused differentiation, integrated cost leadership/differentiation o Competitive advantage: Cost leadership vs. product differentiation o Valuing competitive advantage What is the difference between organizational effectiveness and strategy? (Porter reading) What is strategic fit? (Porter reading) Innovation (Chapter 7 and additional readings on Compass) o What is the industry life cycle? Why does it matter? o When introducing a new product, firms must take the perspectives and needs of different sets of customers into account. Understand the needs of these different groups. o Understand the concept of “crossing the chasm”? What is required to cross the chasm? o What are complementary assets? o How can ideas be protected? o What is meant by the term open innovation? Closed innovation? Diversification (Chapter 8) o Understand the difference between business strategy and corporate strategy o What is a principle-agent problem? o Understand the difference between horizontal and vertical integration (Chapters 8 and 9) o When does diversification improve/diminish firm performance? Acquisitions, Alliances & Networks (Chapter 9) o What are the pros and cons of acquisitions? o Why do firms engage in acquisitions? o Why do firms develop strategic alliances? o Describe the three categories/general types of strategic alliances and when each should be used o Be able to use the “build, borrow, or buy” framework to decide whether internal development, contracting/licensing, a strategic alliance, or an acquisition is appropriate. Global strategy (Chapter 10) o Describe each of the following global strategy positions: global-standardization, transnational, international, and localization strategies. When should each be used? o What are the various modes of entry into an international market that a firm may pursue? When should each be used? o What risks should a firm be aware of when considering entry into a different international market? Corporate Governance & Business Ethics (Chapter 12) o What is agency theory? What problem is it trying to solve? o Understand the difference between what is legal and what is ethical

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