Important Short Questions and Answers: Strategy Implementation and Evaluation

 STRATEGY IMPLEMENTATION & CONTROL

1. What is limitability?

Limitability is the rate at which firms underlying resources and capabilities or cores competencies can be duplicated by others. To the extent that a firms distinctive competency gives it competitive advantage in the market place. Expatiators. Will do what they can to skills and capabilities. A core competency can be easily limited to the extent that it is transparent transferable and replicable.

2. What is transparency?

Transparency is the spared with which other firms can understand the relationship of resources and capabilities supporting a successful firms strategy.

3. What is Transferability?

The ability of competitors to gather the resources and capabilities necessary to support a competitive challenge.

4. What Reliability?

The ability of competitors to use duplicated resources and capabilities to imitate the other success.

5. What is Value –Chain?

A Value chain is a linked set of value enacting activities beginning with basic raw materials coming from suppliers, moving on to a series of value-added activities involved in producing and marketing a product or service and ending with distributors getting the final goods into the hands of the ultimate customer.

6. What is a Marketing mix?

The marketing mix is the particular combination of they variables under the corporations control that it can use to affect demand and to gain competitive advantage. These variables are products, promotion price and place.

7. What is product life cycle?

•                     Introduction

•                     Growth

•                     Maturity

•                     Decline

Product Life cycle is a graph showing time plotted against sales of a product as it moves from introduction through growth and maturity to decline.

8. Differentiate between economics of scope and economics of scale?

Economics of scope means common parts of the manufacturing activities of various products are combined to gain economics even through small numbers of each product are made. Economic of scale means units costs are reduced by making large numbers of the same products.

9. What is propitious niche?

Propitious niche is a company‘s specific competitive that is so well suited to

the firms internal and external environment that other corporations are not likely to challenge or dislodge it.

10. What is Flanking Manoeuvre?

Rather than going straight for a competitive position of strength with a frontal assault a firm may attack a part of the market, where the competitor is weak. This is called flanking manoeuvre.

11. What is Organization Development or OD?

OD is a complex educational strategy designed to increase organizational effectiveness and wealth through planned inventions by a consultant using theory and techniques of applied behavioral science.

12. What is Job Enrichment?

Job enrichment is a conscious effort to build into jobs a higher sense of challenge and achievement. In a job enrichment program, the worker decides how the job is performed, planned and controlled and makes more decision concerning the entire process job. Employee decides how the job will be performed and receive less direct supervision on the job. Consequently the employee receives a greater sense of accomplishment as well as more authority and responsibility and job satisfaction. This in turn contributes for batten employee performance and higher productivity.

13. What is organization structure?

Organizational structure is an established pattern of relationships among the component parts of an organization. Structure is made up of three component parts. Complexity, formalization and centralization. Complexity refers horizontal differentiation vertical differentiation and location differentiation. Formalization refers to the degree to which the jobs within the organization are standardized. High standardization of jobs results in less freedom and discretion. Centralization refers to the degree to which decision making is concentrated.

14. What is Band Loyalty?

It is the buyer‘s preference for the products of any established company. A company can create brand loyalty by providing high quality products; goods after sales service continuous advertising of its brand name and company name, patent protection of product, product innovation achieved through company research and development programs.

15. What is Economics of Scale?

Economics scale another relative cost advantages associated with large volumes of production that lower a company‘s cost structure.

Sources of Scale Economics include.

•                     Cost reductions gained through mass producing a standardized output.

•                     Discounts on bulk purchases of raw materials and component parts.

•                     Advantages gained by spreading fixed phony cost over large production

•                     Volume.

16. What is customer switching cost?

The costs arise open a customer switches from one company‘s product to another company is called customer switching cost switching from one product to another, costs the customer, time, money and energy. When the switching cost is high, customers can be locked into the product offerings of established companies. E.g.

Microsoft‘s windows Operating System.

17. What is a Fragmented Industry?

Fragmented Industry consists of a large number of small or medium sized companies none of which is in a position is determine Industry price.

18. What is a Consolidated Industry?

A consolidated industry is dominated by a small number of large companies and they any in a position to determine industry prices.

19. What is Bargaining power of buyers?

Bargaining power of buyers refers to the ability of buyers to bargain down prices charged by companies or raise the cost of the product by demanding better quality product.

20. What is bargaining power of suppliers?

Bargaining power of suppliers refers to the ability of suppliers to raise input prices or to raise the cost of the industry by providing poor quality inputs.