Chapter 5

90. What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.

91. Describe the strategy of striving to be the industry's overall low cost provider. What does a company have to do to achieve low-cost provider status?

92. Describe the two basic cost-reducing approaches a company can take to become a low-cost provider in its industry.

93. Which one of the five generic competitive strategies is most likely to be best suited for an industry whose product is a commodity? Explain.

94. What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?

95. What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?

96. What are the pros and cons of a broad differentiation strategy?

97. What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

98. What type of competitive advantage does a best-cost provider strategy aim at achieving? Explain what a company has to do to achieve this advantage.

99. Explain how the strategic target of a low-cost provider differs from the strategic target of a best-cost provider.

100. What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

101. What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

102. What is the difference between a low-cost leadership strategy and a focused low-cost strategy?

103. How does a focused differentiation strategy differ from a broad differentiation strategy?

104. In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

105. Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

106. Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

107. What are the keys to sustaining a focused low-cost strategy?

108. One of the big dangers in crafting a competitive strategy is that managers, torn between the pros and cons of the various generic strategies, will opt for "stuck in the middle" strategies that represent compromises between lower costs and greater differentiation and between broad and narrow market appeal. True or false? Explain your answer.

109. For a company's competitive strategy to succeed in delivering favorable performance and the intended competitive edge over rivals, it has to be well-matched to a company's internal situation and underpinned by an appropriate set of resources, know-how, and competitive capabilities. True or false? Explain your answer.

Chapter 6

77. Strategic offensives should, as a general rule, be grounded in a company's strategic assets and employ a company's strengths to attack rivals. Define and discuss the term strategic assets and its significance in gaining a competitive advantage.

78. There are a number of offensive strategy options for improving market positions using cost-based and blue-ocean type strategies. Define the terms and suggest ways in which the strategies could be operationalized.

79. What is a blue-ocean strategy and what is its appeal?

80. Identify and briefly discuss two "best targets" for offensive attacks by companies.

81. Discuss why timing of strategic moves is important.

82. Identify and briefly explain what is meant by each of the following terms.a) Horizontal scopeb) Vertical scopec) Scope of the firm

83. Identify and briefly explain what is meant by each of the following terms.a) A first-mover advantageb) A first-mover disadvantage (or late-mover advantage)

84. Under what sorts of circumstances are horizontal mergers and/or acquisitions of other companies a better solution than entering into partnerships or alliances with these companies? How do mergers and/or acquisitions contribute to enhancing a company's position?

85. What are the general strategic objectives of merger and acquisition strategies?

86. What are the strategic advantages of a backward vertical integration strategy?

87. What are the strategic disadvantages of a backward vertical integration strategy?

88. What are the strategic advantages of a forward vertical integration strategy?

89. What are the strategic disadvantages of a forward vertical integration strategy?

90. What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?

91. Identify and explain at least two drawbacks to forming a strategic alliance.

92. What are the three principal advantages of strategic alliances over vertical integration or mergers/ acquisitions?

93. What does a company racing for global market leadership need strategic alliances for?

94. What does a company racing to stake out a strong position in an industry of the future need strategic alliances for?

95. Identify at least three factors that can aid companies in forming a successful strategic alliance?

96. Identify and briefly discuss four disadvantages of a vertical integration system?

97. What are the advantages of strategic alliances and collaborative partnerships with key suppliers?

98. What are the merits of strategic alliances and collaborative partnerships for companies racing for global market leadership? Under what circumstances do they make sense? How do they contribute to competitive advantage?

99. What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

100. Identify and briefly discuss three factors a company must consider in order to capture the benefits of engaging in strategic alliances.

Chapter 7

119. What are the key reasons (identify and briefly discuss) why a company may consider expanding outside its domestic market?

120. Explain why the strategies of firms that expand internationally are usually grounded in home-country advantages or core competencies.

121. Briefly identify the special features of competing in foreign markets.

122. Explain how exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in foreign markets

123. Identify and explain the significance of each of the following terms and concepts:a). global strategyb). export strategyc). licensing strategyd). franchising strategy

124. Compare and contrast the advantages for entering and competing in foreign markets for the strategic options of exporting, licensing, and franchising.

125. Identify and briefly describe any three of the five generic strategic options for competing in foreign markets.

126. What are the pros and cons of using strategic alliances to try to enhance a company's ability to compete in foreign markets?

127. Discuss in some detail the difference between a multidomestic strategy and a global strategy. Give the pros and cons of each.

128. What circumstances call for use of a multidomestic strategy for competing in international markets?

129. When is a global strategy "superior" to a multidomestic strategy?

130. What are the four things a company needs to consider or do if it is to make the most of strategic alliances with foreign partners?

131. Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies. What are the risks and disadvantages of such alliances?

132. A global strategy embraces the theme "think global, act global," whereas a multidomestic strategy relies more on a "think global, act local" mentality. True or false? Explain.

133. Explain the differences between a "think global, act global" strategy and a "think global, act local" strategy.

134. Explain why a company desirous of competing in foreign markets needs to pay careful attention to where it locates it value chain activities.

135. Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations?

136. Under what circumstances is it advantageous for a company competing in foreign markets to disperse certain value chain activities across many countries?

137. Discuss why a company desirous of competing in foreign country markets needs to pay close attention to the advantages of the cross-border transfer of competencies and capabilities. Are these transfers often a key to competitive advantage? Why or why not?

138. What are the strategic options (identify and briefly describe) for tailoring a company's strategy to compete in emerging country markets?

139. Identify and briefly describe a local company's strategic options in competing against global challengers?

Chapter 8

151. What is the purpose of diversification?

152. Briefly discuss when it makes good strategic sense for a company to consider diversification.

153. Identify and briefly discuss each of the three tests for determining whether diversification into a new business is likely to build shareholder value.

154. The attractiveness test is the most important test for determining whether diversification into a new business is likely to result in 1 + 1 = 3 increases in shareholder value (as opposed to simply a 1 + 1 = 2 type of increase). True or false? Justify and explain your answer.

155. Explain the relevance of the following as they relate to building shareholder value via diversification:a) The industry attractiveness testb) The cost-of-entry testc) The better-off test

156. Identify and explain the meaning and strategic significance of each of the following terms:a) Related diversificationb) Unrelated diversificationc) Strategic fitd) Economies of scopee) Divestituref) Corporate restructuring

157. Identify and briefly discuss each of the three options for entering new businesses. What are the driving choice parameters for entry into new businesses and which one is the most popular in the sense of being used most frequently?

158. Carefully explain the difference between and the rationale for selecting a strategy of related diversification and/or a strategy of unrelated diversification

159. Which is the better approach to diversification—a strategy of related diversification or a strategy of unrelated diversification? Explain and support your answer.

160. What is meant by the term strategic fit? What are the advantages of pursuing strategic fit and matchups in choosing which industries to diversify into?

161. Discuss the pros and cons of a strategy of unrelated diversification.

162. Identify and briefly describe the six steps involved in evaluating a diversified company's business lineup and diversification strategy.

163. What does the industry attractiveness test involve in evaluating a diversified company's business lineup? Why is it relevant?

164. What is the relevance of quantitatively measuring the competitive strength of each business in a diversified company's business portfolio and determining which business units are strongest and weakest?

165. Briefly explain what is meant by each of the following terms:a) Relative market shareb) Resource fitc) A cash hog businessd) A cash cow business

166. What are the advantages and benefits of using an industry attractive-business strength matrix to evaluate a diversified company's lineup of businesses?

167. What is meant by the term resource fit as it applies to evaluating a diversified company's business lineup?

168. Explain the difference between a cash cow business and a cash hog business.

169. Shareholder interests are generally best served by concentrating corporate resources on businesses that can contend for market leadership. True or false? Explain your answer.

170. Why is it pertinent in evaluating a diversified company's business lineup to rank a diversified company's businesses on the basis of their future performance prospects?

171. Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, what are the four main strategic paths it can employ to improve the performance of its overall business lineup?

172. Under what circumstances might an already diversified company choose to enter additional businesses and broaden its diversification base?

173. Under what circumstances might a diversified firm choose to divest one of its businesses?

174. Under what circumstances might an already diversified company choose to pursue corporate restructuring?