6.1
Define strategic positioning in your own words
how a company can stand out from its competitors through different activities
What is the first step in the strategic management process?
Establish the mission, values, and vision
This analysis tool helps organizations identify their internal strengths and weaknesses, as well as external opportunities and threats
SWOT Analysis
What are the 3 methods of corporate-level strategy?
Growth Strategy, Stability Strategy, Defensive Strategy
This competitive strategy focuses on achieving the lowest cost of production and operations compared to competitors.
Cost Leadership
Which of the following is Croc’s strategy?:
A) Few needs, many customers
B) Broad needs, few customers
C) Broad needs, many customers
A) Few needs, Many customers
Give me an example of an organizational assessment that assesses the "current reality" of a company.
Swot Analysis; VRIO Analysis; Forecasting; Benchmarking
This process helps businesses predict future trends and conditions to support strategic decision-making
Forecasting
What strategy might a company use if it is content with its current market share & wants to avoid unnecessary risk?
The Stability Strategy
This strategy aims to target a specific market segment by offering products at lower prices than competitors in the same niche.
Cost Focus
What are the 3 levels of strategy?
Corporate level, Business level, and functional level
What grand strategy has Microsoft implemented to accomplish its mission statement?
A) Growth B) Stability C) Defensive
Explain how they have done it.
A) Growth
Partnered with NVIDIA to create a supercomputer, and implemented a cloud-first strategy using Azure, its cloud-based platform.
Name all 4 tools for assesment
SWOT Analysis, VRIO Analysis, Forecasting, Benchmarking
what method of corporate-level strategy involves expansion
the growth strategy
With this strategy, a company differentiates itself by creating unique product attributes that are valued by a broad market.
Differentiation
Define a "Trade-off" & a trade-off a company might experience
Trade-off: Choosing one option while giving up another
Example: Getting rid of a cost-effective feature for a more popular one that will bring in more sales
How much did Microsoft invest in 2023 to implement its strategy (Stage 4) and where was it invested?
$10 Billion to OpenAI
What are the 4 components of a VRIO analysis?
Value, Rarity, Imitability, Organization
What company primarily uses the stability strategy & what is the stability strategy do they use to maintain their brand?
Coke a Cola or Mcllnenny
Stability strategy of variety
This strategy targets a narrow segment with specialized needs, providing unique products that justify a premium price
Differentiation Focus
Name all 3 principals of strategic positioning
#1 Strategy Is the Creation of a Unique and Valuable Position
#2 Strategy Requires Trade-Offs in Competing
#3 Strategy Involves Creating a “Fit” among Activities
Describe all 5 steps of the Strategic Management Process and apply Microsoft's strategy to at least one of the stages.
Stage 1: Establish Mission, Visions, and Value Statement
Stage 2: Assess the Current Reality
Stage 3: Formulate the Strategies and Plans
Stage 4: Implement the Strategies and Plans
Stage 5: Maintain Strategic Control and Feedback Loop
Microsoft Application: Varies according to team
Name 3 out of the 6 types of benchmarking
Internal, Competitive, Functional, Generic, Strategic, Process
What company had to use the defensive strategy and what defensive strategy did they use?
Toys r Us
Defensive strategy: Filled for bankruptcy
This strategy is risky if competitors find a way to lower costs or copy unique features, making it challenging to maintain a competitive advantage.
Differentiation