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Differentiation strategies are successful in addressing the competitive force of the bargaining power of suppliers because: b. At the same time, the R&D team added a patented sole to all of its shoes. Business-level strategy helps an organization achieve core competencies, keep its focus on satisfying the customer needs and preferences to achieve economies of scale and profit above average. Our patent for the sole has been approved and the legal department says we're good to go on our advertising claims about the new sole. As a company works to build relationships with its customers, its leaders must determine which customer needs they will seek to satisfy. c. With operations in more than 50 countries across 5 continents, and with decades of experience, we can assist with every aspect of your program. A construction company is pursuing a focused differentiation strategy, and after reviewing its core competencies, the leaders have decided to specialize in hospital construction. We try to detect possible differences in the relationship between HRM and the different kinds of operational results (efficiency, quality, and time). Which of these represents a risk for companies pursuing a differentiation strategy? It must determine: b. Course. This will help you to take full advantage of the flexible and cost effective nature of a well-managed contingent workforce. Most of his competitors are selling their products as a one-time purchase. Colin R. White. History and Background The contingency approach to leadership was influenced by two earlier research programs endeavoring to pinpoint effective leadership behavior. b. narrower target market The effectiveness of any of the generic business-level strategies is contingent upon a. customer needs and competitors' strategies. c. Integration cost leadership/differentiation strategy. This study explores the contingent relationships between strategic control, business-level strategy, and the perceived effectiveness of the strategic control system. According to Gareth R. Jones, “Functional strategy is a plan of action to strengthen an organization’s Functional and organizational resources, as well as its coordination abilities, in order to create core competencies.” Corporate and Business strategies give birth to functional strategies, which are implemented in the organization through functional and operational implementation. A plan for how the company will compete in its industry against its rivals to achieve a competitive advantage. Strategy making are constrained to the organization design. d. Competitors' innovations resulting in their ability to drive costs lower. ANS: B PTS: 1 DIF: Medium REF: 105-106 OBJ: 04-04, 28. The effectiveness of each strategy is contingent upon the opportunities and threats in a firm’s external environment and the possibilities provided by the firm’s unique resources, capabilities… Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional, buildings such as schools, prisons, and public administration buildings. What might these leaders focus on to ensure they anticipate customers' changing needs? Choose which of these value-creating activities should be a focus for a company pursuing a cost leadership strategy. c. the trends in the general consumer base and the robustness of the global and industry economy. A contingent workforce strategy means that the HR department provides managers with a series of related tools that work together to allow managers to increase the ratio of contingent workers over permanent workers. Academic year. Which of these strategies could be implemented to improve a company's richness in its customer relationships? Integrating sustainability aspects into product development has long been recognized as a strategic priority for practitioners. eBUS 499: Business-Level Strategy, Competitive Rivalry, and Competitive Dynamics. An effective contingency plan suggests that the percentage of workers in contingent jobs be equal to the percentage of workers that would be laid off in a worse case scenario. The strategy is to continue gain the market share, pursue up-market positioning through strong innovation and selective expansion of mono-brand store network. OBJECTIVE: The main objective of SIGMA (Study on Incentives for Glaucoma Medication Adherence) was to measure the effectiveness on medication adherence of a novel incentive strategy based on behavioral economics that we refer to as adherence-contingent rebates. Efficiency & Effectiveness. A contingent screening strategy for PAS is both feasible and effective in a routine healthcare setting. Increasing your stock-price is contingent on the market. I counsel fellow women in the industry to recognize that there is a strategy being played — like a chess game — … Buyers choosing to purchase lower priced products during a recession. Organizations are required to choose competitive strategies and gain their market share. b. the match between the opportunities and threats in its external market and the strengths and weaknesses of its internal environment. A strategy requires continuous and clear communication. Which of these situations should the firm prioritize? Cash cows are Wine & Spirits and Selective Retailing spectrums that have high market share in a low-growth market. Contingency theories hold that leadership effectiveness is related to the interplay of a leader's traits or behaviors and situational factors. Brand extension is regarded as a highly effective way to leverage a company’s existing brand equity and reach new audiences. It has always competed, on a cost leadership basis. The effectiveness of any of the generic business-level strategies is contingent upon a. customer needs and competitors strategies. This hybrid business-level strategy is good for businesses that have a market niche where the buyer’s needs and preferences are different from the rest of the current market. Big Lots is able to compete against Wal-Mart with a cost leadership strategy because of its, strengths in highly disciplined merchandise cost and inventory management system. c. It's true we've seen our net sales decline, however, our gross profit has increased and our volumes are up year-over-year. Which of these would be a risk for the firm's new strategy? Business Level Strategy. a. Moreover, we test if the impact of high-commitment practices on firm performance is contingent on the strategy followed by the firm. At the contingency theory demonstrates, organization effectiveness can be achieved by the coherence of these variables. b. the match between the opportunities and threats in its external market and the strengths of its internal environment. This strategy refers to single function operation and the activities involved in it. The second of Australia’s three key strategic objectives is to “deter actions against our interests”, although what this means in practise is largely unexamined. Course. To get an edge over your competition, a business-level strategy is needed for long-term success. Thissection introduces common ways in which contingency strategies can be incorporated throughoutthe SDLC. It also arises out of a * From Glueck W., 1980, Business Policy and Strategic Management 3rd Edition, USA, McGraw Hill Publishing. Durable, Ceramics next most-efficient competitor, Cost-Less Ceramics, Inc., earns average returns, while, Durable earns above-average returns. Chapter 4 Business-Level Strategies. When linked to a PAS diagnostic and surgical management service, adoption of such a screening strategy has the potential to reduce the maternal morbidity and mortality associated with this condition. b. the match between the opportunities an c. the trends in the general consumer base: b. the match between the opportunities an: A cost leadership strategy provides goods or services with features that are: a. Consider the impact of this decision in light of the Five Forces of Competition. An integrated cost leadership/differentiation strategy is able to address the competitive forces because: d. the higher margins of the firm can reduce the influence of increases in supplier costs. 19/20 The company has identified its unique process as a core competency. As part of its selection of a business-level strategy, a firm will decide which customers it will serve and what goods or services it will use to satisfy customers' needs. Employees should understand exactly what their organization’s strategy is to achieve it successfully. Suggest an overall business-level strategy. A two-level scheme for reviewing contingency theory research on organizational strategy is proposed. The effectiveness of any of the generic business-level strategies is contingent upon: a. customer needs and competitors' strategies. This study explores the contingent relationships between strategic control, business-level strategy, and the perceived effectiveness of the strategic control system. They have also researched and conducted a thorough SWOT analysis identifying general, industry, and competitor environments, as well as internal resources, capabilities, and core competencies. As they determine the business-level strategy they will pursue for their core business unit, which of these steps would they take? For a specific description of contingency activities and strategies, see Section 5,Technical Contingency Planning Considerations.5 There are several models of the system development life cycle. Although your business may not use every element of these strategies, understanding their core principles can help you evaluate the effectiveness of your existing competitive strategy. Course Hero is not sponsored or endorsed by any college or university. Uploaded by. The brand’s growth is driven mainly by its ‘everyday low prices’ strategy and the large assortment of merchandise it offers. inebriates, contingent on negative breath-alcohol tests, researchers could effectively reduce public inebriation. Commercial construction firms are putting pressure on, Durable to reduce its prices eliminates... Forces of competition 's external environment and the differentiation strategy b. narrower target market the effectiveness of a firm new! 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