MAN 320F EXAM 2 AROIAN |QUESTIONS AND ANSWERS
Blue Ocean Strategy - -strategy where it includes all industries not in existence, unknown
market space
going where the profits and growth is, not where the competition is
-Red Ocean Strategy - -all industries in existence, the known mkt space
-industries never stand... - -still
-strategic move - -the set of managerial actions and decisions involved in making a major
market-creating business offering
-with technology & globalization, it has led to what? - -accelerated commodization
where brands become more similar, ppl buy more on price
-The iPod was so successful because it was a - -fully-integrated product
-What does it mean...blue ocean? - -creating a new group of consumers
most are created from within red oceans
-what is the key to success? - -market opportunity
-Value innovation - -low costs
high buyer value
-red vs blue ocean strategy - -Red:
compete in existing mkt space, beat competition, exploit existing demand, focus on value-
cost trade-off, make decision to differentiate through strategic choice and low costs
Blue:
create new mkt space, competition= irrelevant, creating new demand, focus on
differentiation & low costs, reconstructionist view
-the winning strategic approach involves - -value innovation
-you break the value-cost trade off by - -enhancing a limited set of key factors and
reducing or eliminating all other traditional
ex: microsoft office vs open office
-strategic plan - -comprehensive plan that identifies the critical direction and guides the
allocation of resources
-strategic management - -1) analyze and learn from stakeholders
2) establish strategic direction
3) create strategy
, 4) execute it
(all in effort to please stakeholders)
-broad environment includes... - -1. sociocultural trends
2. technological trends
3. political trends
4. economic trends
-the task environment includes... - -the closest stakeholders
1. customers
2. suppliers.
3. competitors
-global strategic management - -most successful firms look global for opportuntiies to
grow and develop
saturated domestic mkt> potential foreign mkt
-a mission statement - -reflects what an org is
used for decision making and resource allocations
-a vision statement is - -a forward looking view of what the company will look like
-Michael Porter's Five Forces Model - -Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors
-triple bottom line - -represents people, planet, and profit; measures an organization's
social, environmental, and financial performance
measures an org's social, environmental, and financial performance
-success can be measured through a - -social audit
-social audit - -a systematic evaluation of an organization's progress toward implementing
socially responsible and responsive programs
-internal stakeholders - -employees, owners, board of directors
-owners - -consist of all those who can claim the organization as their legal property
-board of directors - -A group of people elected by the stockholders of a corporation to set
the policies for the corporation.
-external stakeholders - -people or groups in the organization's external environment that
are affected by it
Blue Ocean Strategy - -strategy where it includes all industries not in existence, unknown
market space
going where the profits and growth is, not where the competition is
-Red Ocean Strategy - -all industries in existence, the known mkt space
-industries never stand... - -still
-strategic move - -the set of managerial actions and decisions involved in making a major
market-creating business offering
-with technology & globalization, it has led to what? - -accelerated commodization
where brands become more similar, ppl buy more on price
-The iPod was so successful because it was a - -fully-integrated product
-What does it mean...blue ocean? - -creating a new group of consumers
most are created from within red oceans
-what is the key to success? - -market opportunity
-Value innovation - -low costs
high buyer value
-red vs blue ocean strategy - -Red:
compete in existing mkt space, beat competition, exploit existing demand, focus on value-
cost trade-off, make decision to differentiate through strategic choice and low costs
Blue:
create new mkt space, competition= irrelevant, creating new demand, focus on
differentiation & low costs, reconstructionist view
-the winning strategic approach involves - -value innovation
-you break the value-cost trade off by - -enhancing a limited set of key factors and
reducing or eliminating all other traditional
ex: microsoft office vs open office
-strategic plan - -comprehensive plan that identifies the critical direction and guides the
allocation of resources
-strategic management - -1) analyze and learn from stakeholders
2) establish strategic direction
3) create strategy
, 4) execute it
(all in effort to please stakeholders)
-broad environment includes... - -1. sociocultural trends
2. technological trends
3. political trends
4. economic trends
-the task environment includes... - -the closest stakeholders
1. customers
2. suppliers.
3. competitors
-global strategic management - -most successful firms look global for opportuntiies to
grow and develop
saturated domestic mkt> potential foreign mkt
-a mission statement - -reflects what an org is
used for decision making and resource allocations
-a vision statement is - -a forward looking view of what the company will look like
-Michael Porter's Five Forces Model - -Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors
-triple bottom line - -represents people, planet, and profit; measures an organization's
social, environmental, and financial performance
measures an org's social, environmental, and financial performance
-success can be measured through a - -social audit
-social audit - -a systematic evaluation of an organization's progress toward implementing
socially responsible and responsive programs
-internal stakeholders - -employees, owners, board of directors
-owners - -consist of all those who can claim the organization as their legal property
-board of directors - -A group of people elected by the stockholders of a corporation to set
the policies for the corporation.
-external stakeholders - -people or groups in the organization's external environment that
are affected by it
