Management Test 3 Week 7

Aileen Irmina P. 19/440371/EK/22297

Question 1
a) Please explain three levels of planning in a company!
b) Please briefly examples of strategies at corporate level and business level (each level
is one example)!

Answer:
a)
 corporate level-plan: when the top management of the company also determine the
decisions, strategies, long-term goals, and also structure in the company.
 Business-level plan: the divisions of the company are allowed to make decisions,
strategies, structures in order to meet the company’s long-term goals.
 Functional-level plan: the divisions’ goals are able and directly affecting the
company’s long-term goals and main goals. Therefore, the manager of each division
should be able to maintain their team to meet the goals of the division.

b)
 Corporate level strategy: that the national market of industries of the company or
organization intends to compete. Example: one of the Indofood’s brand, Indomie, is
already win customer loyalty, therefore they sometimes lack of competition because
market is reluctantly choose Indomie. To be competitive again, Indomie released an
instant cup noodles so they can compete to the other brand.
 Business level strategy: the methods of the division or the company itself are used to
compete. Example: The manager of each division of Indomie brand is responsible to
make the new version of Indomie (instant cup noodle) to win the market like their
current product (Indomie instant noodle).

Question 2
Please explain SWOT analysis and Porter’s Five Forces of Competition!

Answer:
SWOT Analysis:
 Strengths: things that the company does well, what separates the company with the
other company, internal skill and resource, brand loyalty.
 Weakness: things that the company less, what the competitors’ have more than the
company, lack of resources.
 Opportunities: few competitors in the market, the product that the company
produce is primary.
 Threats: increasing number of competitors in the market, changing customer
attitude and behavior.
Porter’s Five Forces of Competition:
o The level of rivalry among organizations is an industry: company tends to compete
more with the competitors for gaining customers
 o The potential for entry into an industry: how much is easier for a company to enter
the market of the industry
o The power of large suppliers: the low number of suppliers could control the input of
a company, therefore suppliers also have a big role in determining the price of the
product
o The power of large customers: if the company has large number of customers, the
company could decrease the price of their product.
o The threat of substitute products: whether the product of the company could be
substitute by the competitors or the other kind of products.

Question 3
Please explain the four specific ways in which manager can lower cost and/or increase
differentiation to obtain a competitive advantage!

Answer:
a) Achieve superior efficiency: the company could run their business with the efficiency
of time and money, therefore they can gain maximum profit.
b) Achieve superior quality: the company could produce good product, therefore they
can win the customers’ choice and could win the market.
c) Achieve superior innovation, speed, and flexibility: the faster the company could
provide products to the market the bigger customers’ choice the company will has.
So, it will lower the possibility that the customer will choose another brand.
d) Attain superior responsiveness to customers: the company should treat their
customer perfectly, because the customer is where the profit comes from.