RPV

RBV/Define RBV- the resource based View is a framework that is used to determine the
strategic resources a firm can exploit to achieve sustainable competitive advantage.. the resource
based view relies on few component of a organization one of them is tangible and intangible
resources then the have the quality heterogeneous and immobile of resources and then the
VRIO characteristics of resources. All of component enables the firm to gain and sustain
competitive advantage.

Assumptions of RBV? Explain-There are two critical assumptions of RBV one of them are
heterogeneous and another of the immobile. Heterogeneous refers to organization posses differ
from one company to another. Immobile –refers to do not move one business to other business.
Example- You have a manager who is very good very skillful now the other business says I
wants to hire you

VRIO framework-VRIO Frame work is a characteristics of resource based view .Resources

must have be VRIO Characteristics it must be valuable ,it must be rare it must be imitable and
"Is the firm organized to capture value .When if the resources are not valuable we say there is no
competitive advantages. Whether the resources is not rare we can say it is competitive parity.
Advantage /WHY USED-VRIO analysis is a tool in strategic planning, used by firms to make effective
business decisions. The analysis provides information and the results will hopefully provide a
competitive advantage. It’s used to identify and evaluate resources in a company.

VALUE CHAIN
value chain analysis?- Value chain analysis (VCA) is a process where a firm identifies its
primary and support activities that add value to its final product and then analyze these activities
to reduce costs or increase differentiation. example- McDonald's mission is to provide customers
with low-priced food items. And the analysis helps McDonald's identify areas for improvement and
activities that add value to their products and services or activities.

primary activities. -activities related to the design, creation and delivery of the product its
marketing and its support after sell service. primary activities are broken down into four
functions: research and development-Research and development (R&D) refers to the design of
products and production processes. , production-Production refers to the creation of a good or
service., marketing and sales-marketing and sales functions of a company can create value, and
customer service-This function can create superior utility by solving customer problems and
supporting customers after they have purchased the product..,

support activities.: support activities of the value chain provide inputs that allow the primary
activities to take place. These activities are broken down into four functions: - materials-
management (or logistics) function controls the transmission of physical materials through the
value chain, human resources- function can help an enterprise create more value., information
systems-Information systems are, primarily, the digital systems for managing inventory, tracking
sales, pricing products, selling products, dealing with customer service inquiries, and so on.,
company infrastructure-Company infrastructure is the companywide context within which all the
other value creation activities take place. This includes organizational structure, control systems,
incentive systems, and organizational culture—

building blocks
building blocks of competitive advantage?- superior efficiency, superior quality, superior
innovation, and superior customer responsiveness. Four factors help a company build and sustain
competitive advantage. superior quality can lead to superior efficiency, and innovation can
enhance efficiency, quality, and responsiveness to customers.

Efficiency? How company measures efficiency? efficiency is the quantity of inputs required to
produce a given output; that is, efficiency = outputs/inputs. Two Company measures of
efficiency 1.Employee productivity 2.Capital Productivity.

Concept of quality? Quality can be defined as “fitness for use,” “customer satisfaction,” “doing
things right the first time,” or “zero defects.” These definitions are acceptable because quality
can refer to degrees of excellence. For example, a Rolex watch has attributes such as design,
styling, performance, and reliability that customers perceive as being superior to the same
attributes in many other watches. Thus, we can refer to a Rolex as a high-quality product: Rolex
has differentiated its watches by these attributes.

Innovation? define each of them. Innovation is the creation, development and implementation of
a new product, process or service, with the aim of improving efficiency, effectiveness or
competitive advantage. Product innovation in improved products involves introducing better
or more functionality to existing products. EXAMPLE- Lego has been changing the materials
of its famous bricks to biodegradable oil-based plastics .Process Innovation-development of a
new process for producing and delivering product to customers.

Ansoff Matrix
Which level strategy is related to Strategic outsourcing? corporate level strategy

Ansoff Matrix/define Ansoff matrix: Ansoff’smatrix, which generates an initial set of

alternative strategic directions. Increased penetration of existing markets;▫Market development,
which includes building new markets, perhaps overseas or in new customer segments; ▫Product
development, referring to product improvement and innovation; and▫ Diversification, involving a
significant broadening of an organization’s scope in terms of both markets and products.

Dimensions of Ansoff Matrix? Ansoff Matrix has two dimensions one is existing and new
product and another one is existing and new market.

Why do use Ansoff Matrix- To said as strategic direction . Ansoff Matrix is used in the
strategy stage of the marketing planning process. It is used to identify which overarching
strategy the business should use and then informs which tactics should be used in the marketing
activity.

Market penetration with examples. Market penetration is a measure of how much a product
or service is being used by customers compared to the total estimated market for that product or
service.. Example-Apple has consistently introduced new versions or their iPhones with added
enhancements and upgrades, including releasing its high-end iPhone X. As a result of its market
penetration

. What are the two constraints of market penetration? Two constraints:▫Retaliation from
competitors.▫Legal constraints

Product Development with examples. Product development is where organizations deliver

modified or new products(or services)to existing markets.Example-Packing wheat flour in retail
bags for household consumption.

41. What are the two reasons of product development that makes it expensive and high risk
activity? New strategic capabilities, Project management risk

market development with exam: This strategy focuses on entering a new market using existing
products. Sporting goods companies such as Nike and Adidas recently entered the Chinese
market for expansion. The two firms are offering roughly the same products to a new
demographic.

43. What are the ideas of new market? Define them. the firm enters a new market with its
existing product(s). In this context, expanding into new markets may mean expanding into new
geographic regions, customer segments, etc. The market development strategy is most successful
if (1) the firm owns proprietary technology that it can leverage into new markets, (2) potential
consumers in the new market are profitable (i.e., they possess disposable income), and (3)
consumer behavior in the new markets does not deviate too far from that of consumers in the
existing markets.
44. Define diversification with examples. Diversification is defined as a strategy that takes an
organization away from both its existing markets and its existing products. Example- an auto
company may diversify by adding a new car model or by expanding into a related market like
trucks

45. What is related diversification?- there are potential synergies to be realized between the
existing business and the new product/market.example: a leather shoe producer that starts a line
of leather wallets or accessories is pursuing a related diversification strategy.

46. What is unrelated diversification? There are no potential synergies to be realized between
the existing business and the new product/market.

For example, a leather shoe producer that starts manufacturing phones is pursuing an unrelated
diversification strategy.

BCG Matrix

BCG Matrix stands for Boston Consulting Group Matrix which has been used for over 50 years
as a method to analyze a portfolio of products. its known as the growth share matrix, is a
portfolio management framework that helps companies decide how to strategically manage a
portfolio of products or services. ) Growth rate: How is the product growing in the market
relative to other products?2) Market share: What portion or size of the market has the product
garnered relative to competition?

Dogs: These are products with low growth or market share.

Question marks or Problem Child: Products in high growth markets with low market share.
Stars: Products in high growth markets with high market share.
Cash cows: Products in low growth markets with high market share

Why used BCG-  because it Helps to understand the strategic positions of a business portfolio;
It’s a good starting point prior to further analysis. BCG matrix emphasizes on the cash flow, and
draws attention to investment characteristics. It is helpful for managers to evaluate balance in the
firm‟s current portfolio of Stars, Cash Cows, Question Marks, and Dogs. The matrix indicates
that the profit of the company is directly related to its market share. Therefore, a company can
increase market share if it seems profitable. Finally, it has only four categories that make it in
simple form to operate efficiently

Horizontal Integration
Which level strategy is related to horizontal integration? corporate level strategy
horizontal integration?-Refers to the business will stay in the same business industry that is
called horizontal integration .Example-Shawpno, KFC ,Mc Donald ,Walmart

14. What is benefit to stay in the same market / horizontal integration?- 1.lowers the cost
structure, (2) increases product differentiation, (3) leverages a competitive advantage more
broadly, (4) reduces rivalry within the industry, and (5) increases bargaining power over
suppliers and buyers

15. How to do horizontal integration? By following acquisition and merger.

acquiring the competitor? Refers to when one company purchases most or all of another
company's shares to gain control of that company.

merger? A merger is an agreement between equals to pool their operations and create a new
entity.Example-Mergers and acquisitions are common in most industries. In the aerospace
industry, Boeing merged with McDonnell Douglas to create the world’s largest aerospace
company; in the pharmaceutical industry, . It aims to increase the size of the business

Differences between horizontal and vertical integration? business will stay in the same business
industry that is called horizontal integration .Example-Shawpno, KFC ,Mc Donald ,Walmart .It
aims to increase the size of the business

Which level strategy is related to Vertical integration?—Corporate level strategy

Vertical Integration: Company expanses operation either backward and forward.Example –

Toyota company they produce car in order to produce car firstly they are need raw material
like as steel ,tiers,engine . then the company after final assemble produce to retailer for sell . It
aims to strengthen the supply chain

20. What is backward vertical integration? vertical integration integrates a company with the
units supplying raw materials to it (backward integration), For example, a supermarket may
acquire control of farms to ensure supply of fresh vegetables (backward integration)

21. What is forward vertical integration ? the company distribution channels that carry its
products to the end-consumers (forward integration). buy vehicles to smoothen the distribution
of its products (forward integration).

23. If any company uses both forward and backward integration, can it be considered as vertical
integration?- Yes.It can be.company use Both forward and backward integration are vertical
integration strategies to gain better control of the value chain, reduce dependence on the
suppliers and increase business competitiveness.  The two strategies can help companies gain
higher control of their business and reduce the bargaining power of suppliers. There are some
major benefits to be obtained from these strategies. Both can have an impact on the bottom line
directly.
24. IUBAT has opened a bank through that bank student will make their

payments rather than Dhaka Bank. Is it a backward or forward integration? It is a forward

itegration because iubat has opended distribution channel like as Dhaka bank that received
payment from the end consumer like as student.

Generic Strategy
25. What is generic strategy? refers to three alternative methods for a firm to position itself
competitively within an industry: cost leadership, focus , differentiation leadership and
differentiation .

Which level strategy is related to porter generic strategy :Business level strategy .

26. What are the dimensions of Porters generic strategies? Porters generic strategy has two
dimension first one is scope breadth and and another dimension source of competitive
advantage. there are two types of scope narrow scope and broad scope. there are two types
source of competitive advantage first one is cost and second one is differentiation.

Why do using porter generic strategy- Competitive Advantage: Creating and Sustaining
Superior Performance ,Porter’s Generic strategies can be used to determine the direction
(strategy) of your organisation. cost Leadership, Differentiation and Focus. Organizations that
achieve Cost Leadership can benefit either by gaining market share through lowering prices
(whilst maintaining profitability) or by maintaining average prices and therefore increasing
profits.

27. What are the three generic strategies? Cost leadership, focus and differentiation

cost leadership strategy? A cost leadership strategy is an integrated set of actions designed to
produce or deliver goods or services at the lowest cost, relative to that of competitors, with
features that are acceptable to customers. Example- Wal-Mart through its chains and high spread
network is able to acquire goods at very low prices giving it a cost advantage which it uses in its
everyday low price (EDLP) program to ensure customer satisfaction by ensuring maximum
saving

differentiation strategy? A differentiation strategy is highly useful when competing in a highly

competitive market and the product and its customers are not price sensitive. Example-Apple has
its hardware which focuses on improved customer experience resulting in a higher brand
perception and differentiation from its competitors

focus strategy? Explain both focus strategy- Focus strategy is developing, marketing and
selling products or services to a appropriate market, such as a particular type of consumer, a
specific product line or a targeted area. A company usually follows a focus strategy when it can
serve a narrow piece of the market better than competitors.. Example- Coca-Cola Company has
introduced ‘diet cola’ to serve the niche market consisting of diabetic patients. Cost focus-In cost
focus a firm seeks a cost advantage in its target segment. Cost focus exploits differences in cost
behavior in some segments. Differentiation focus-In differentiation focus a firm seeks
differentiation in its target segment. It exploits the special needs of buyers in certain segments.

Strategy Outsourcing
Which level strategy is related to Strategic outsourcing? Corporate level strategy

strategic outsourcing.- Strategic outsourcing refers to one or more of a company’s value-chain

activities or functions to be performed by independent specialized companies that focus all their
skills and knowledge on just one kind of activity.Example-our garments industry. many foreign
company’s come to Bangladesh to order their garment products to produce it. This is outcome
of strategy outsourcing .

Reasons for outsourcing? /what are the benefits of outsourcing?1.Enhances management,2.

Cost savings ,3.Get more money 4.Improves quality ,5.Increases productivity 6.Conserve
capital,7.Foster innovation

Different forms of strategic outsourcing?1,Business process outsourcing 2.Knowledge

process outsourcing 3.Out tasking 4,selective out sourcing

mistakes to avoid in outsourcing?Wrong out sourcing partners,Inaccurate agreement, Bad

contract. Not Recognizing the Prerequisites. Not Recognizing the Risks. ... Failing to Achieve
Internal Consensus. ..Failing to Set Clear Expectations. ..Not Prioritizing, Contract Negotiations.

advantages and disadvantages of strategic outsourcing?

It can help a company (1) lower its cost structure, (2) increase product differentiation,16 and (3)
focus on the distinctive competencies that are vital to its long-term competitive advantage and
profitability. Disadvantage-Lose Some Control., Hidden Costs. ... Security Risks. ...Reduce
Quality Control. . Share Financial Burdens

Blue ocean and red ocean strategy :

Blue Ocean Strategy is referred to a market for a
product where there is no competition or very less
competition.
Blue Ocean strategy focus on non customers
Blue ocean Create uncontested markets to serve
Blue ocean Approach of Make the competition
irrelevant
Blue ocean Create and capture new demand
Align the whole system of a firms activities in pursuit
of differentiation and low cost.
A red ocean strategy involves competing in
industries that are currently in existence
Red ocean Focus on current customers
Red ocean Compete in existing markets
Red ocean Approach of red ocean strategy is to
Beat Competition
Red ocean Exploit existing Demand
Align the whole system of a firms activities with its
strategic choice of differentiation and low cost.
 Overall learn

-strategic management is one of the most important "hard skills" in business management. we learn
how we can manage business and project proactively with a focus on long term strategy .in this course
we learn about How organizations use strategic management , How company measures efficiency
How to apply Porters Five Forces Model Pestel Framework ,vrio framework and use it for business
analysis. How to improve strategic decision making.