PAST SEMESTER QUESTIONS #3

APRIL 2011


PART A

3. Environmental scanning is the acquisition and analysis of events and trends in the environmental internal to an organization.
=FALSE


4. Broad cost leadership, broad differenttiation and focused group are all include in Porter's Three Generic Strategies.
=TRUE


5. The value chain approach views in organization as a series of processes, each of which adds value to the product or service for each customers.
=TRUE


6. Effective and efficient supply chain management systems can enable an organization to decrease the power of its buyer.
=TRUE


PART B


2. What is a competitive advantage?

     B.   A product or services that an organization's customers value more highly than similar offerings from a supplier.

SEPTEMBER 2011

PART A

3. Competitive advantages occurs when an organization can significantly impact its market share by being first to market with an advantage.

=FALSE

4. Business process is one of the common tools used in the industry to analysed and develop competitive advantages.

=FALSE

6. Effective and efficient supply chain management systems can enable an organization to create entry barriers.

=TRUE

PART C

Question 1

  There are five (5) forces model and for the first was buyer power. It  is high when buyers have many choices of whom to buy from and low when choices are few. To reduce buyer power and create competitive advantages, an organizations must make it more attractive for customers to buy from it than from its competition.

  Supplier power is went high when buyers have few choices of whom to buy from and low when their choices are many. A supplier organizations in a market want buyer power to be low. The example that we can see from supplier power is via supply chain where it consists of all parties involved directly or indirectly in the procurement of a product or raw material. In a typical supply chain an organizations will probably be both a supplier and a customer.

  Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Entry barriers is a product or service features that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive.


  Threat of substitute product or service is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. An organizations would like to be in a market in which there are few substitutes for the products. The organizations can create competitive advantage by using switching cost.


  Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacement. The retail grocery industry for example is intensively competitive.