BSG Exam 3 Questions and Answers
Strategic Offensive
called for when a company spots opportunities to gain profitable market share at its rival's expense or when a company has no choice but to try to whittle away at a strong rival's competitive advantage
Blue Ocean Strategy
offers growth ...
strategic offensive called for when a company spot
blue ocean strategy offers growth in revenues and
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BSG Exam 3 Questions and Answers
Strategic Offensive - answer called for when a company spots opportunities to gain
profitable market share at its rival's expense or when a company has no choice but to
try to whittle away at a strong rival's competitive advantage
Blue Ocean Strategy - answer offers growth in revenues and profits by discovering
or inventing new industry segments that create altogether new demand
Offensive Strategies - answer sometimes a company's best strategic option is to
seize the initiative, go on the attack, and launch a strategic offensive to improve its
market position
Principal Offensive Strategy Options - answer 1. Offer an equally good or better
product at a lower price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from
less innovative rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent
or distracted rivals.
7. Launch a preemptive strike to secure an industry's limited resources or capture a rare
opportunity
Defensive Strategies - answer Can help protect a competitive advantage but rarely
are the basis for creating one
First Mover Advantages - answer If market responds well to its initial move, the
pioneer will benefit from a monopoly position that enables it to recover its investment
costs and make an attractive profit
First Mover Disadvantages - answer 1. When costs are high relative to the benefits
accrued and imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer
expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first
mover's products with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed,
allowing late movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what
actions are easily copied or even surpassed
, Scope of the Firm - answer refers to the range of activities that the form performs
internally, the breadth of its product and service offerings, the extent of its geographic
market presence, and its mix of businesses.
Horizontal Scope - answer the range of product and service segments that a firm
serves within its focal market
Vertical Scope - answer the extent to which a firm's internal activities encompass the
range of activities that make up and industry's entire value chain system, from raw-
material production to final sales and service activities
Threat Analysis - answer the awareness of close competitors and the kinds of
actions they make
Signaling - answer the goal is to dissuade challengers from attacking at all or to
divert them to less threatening options
Organizational Structure - answer formalized patterns of interaction that link tasks
and people, typically changes as the size and complexity of the company increases, a
function of company growth and diversification strategies
Simple Organizational Structure - answer the owner makes decisions and controls
activities, most common form in which staff is an extension of the top executive
Functional Organizational Structure - answer the major functions of the firm are
grouped internally, it recognizes that the owner is not skilled in all aspects, so owners
hire specialists in various functional areas
Multidivisional Structure - answer a decentralized structure consisting of a set of
operating divisions organized along business, product, customer group, or geographic
lines and central corporate headquarters that allocates resources, provides support
functions, and monitors divisional activities
Matrix Organizational Structure - answer a combination structure that overlays one
type of structure onto another type, with multiple reporting relationships. It is used to
foster cross-unit collaboration
Network Structure - answer a configuration composed of a number of independent
organizations engaged in some common undertaking, with one firm typically taking on a
more central role
Boundryless Organizational Structure - answer reflect organizations in which
boundaries are more permeable
Barrier Free Organizations - answer differences are bridged so as to facilitate
sharing and cooperation
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