1 Guidance for Preparing for Midterm Exam. 2 Exam will be on Friday, August 14, 2015 Exam will be a maximum of two hours Exam will be all Essay Bring.

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Presentation transcript:

1 Guidance for Preparing for Midterm Exam

2 Exam will be on Friday, August 14, 2015 Exam will be a maximum of two hours Exam will be all Essay Bring own pen and pencil for writing, paper will be provided for writing your responses. Midterm Exam covers Chapters 01, 02, 03, 04, and 05 and class discussions. Review PowerPoint slides for each chapter and connect slides to materials in each chapter and lecture notes.

3 Chapter 01: Be able to identify and explain four strategic choices/questions that need to be answered in the strategic management process. Be able to explain the concept of strategic issue and its connection to internal and external analysis Be able to explain the modern flow of strategic management and why the flow exists

4 Chapter 02: Be able to identify the components of the general environment and explain why they are important for strategy Be able to explain the following tools for analyzing an industry –Porter Five-Forces Model of Competition (determining the attractiveness of an industry) –Strategic Groups –Key Success Factors –Competitive Changes During industry Evolution

5 Chapter 03: Be able to explain the value chain, its components, and its usefulness for internal analysis Be able to explain the resource-based view of the firm and the meaning of resources, capabilities, and priorities Be able to explain the VRIO model and its sustainability and its components Be able to explain the DuPont Formula and its usefulness Be able to explain how internal and external analyses are combined and what the combination leads to

Chapter 04: Be able to explain how cost leadership can be achieved throughout the value chain and how Southwest Airlines accomplishes cost leadership in its value chain Be able to explain the differences between economies of scale and economies of scope Be able to explain learning and experience as sources of cost advantage Be able to explain changing the business model as a basis for cost advantage

Chapter 05: Be able to explain the meaning of differentiation and its sources Be able to explain how differentiation can be achieved throughout the value chain. Be able to explain speed in the value chain as a source of competitive advantage Be able to explain how customer segmentation is used to enable product differentiation 7

8 Other Preparation: Know the lessons for doing strategy from the class discussions of Atkinson Paper Company and the Standard Oil of Indiana case