BA 190 EXAM NOTES

A. Dream, People, Culture

- Aim high, surround yourself with the best people, own the company
- Dream: managers close the dream gap
- People: Get the best people and train them, meritocracy
- Culture: ownership, results driven
- To be fair youve got to treat different people differently

B. Ansoff Matrix
- Shows whether a business should grow and expand within a new or existing markets or
through a new or existing products

C. Walmarts CEO on the Impact of Globalization and Culture

D. Introduction to Strategic Management
- Strategic management: focus on entire business as a whole
- Strategy boundary that tells a what a company does and what a company doesnt do;
what it can do better than competitors
- 3FundamentalQs: Where do we compete, how do we compete, (First two is strategy
formulation), how do we execute (strategy implementation) *GOOD FORMULATION +
GOOD EXECUTION = DO RIGHT THING PROPERLY
- For strategy to work: Market opportunity, resources, execution
E. ALTERNATIVE COMPETITIVE ADVANTAGES
- Traditionally: cost leadership or differentiation
- Now: Focus on Process (Leaders on operational excellence-more efficient) lower price or
maximum convenience; Product (Product leaders-best product) have a truly distinctive
and superior product; focus on customer intimacy (Give customer what they want)
outstanding service and providing best solution; create lifelong bond with the customer
- Key Question: Why do your competitors choose your company over every other competitor
in the market?
F. GENERIC STRATEGIES
- Competitive advantage: higher profits
- Strategy can be defined by SCOPE of market or SOURCE of strategy

G. COMPETITIVE STRATEGY IN 3 MINUTES

- We compete for customers choices
 - Area A: What we can provide that customer wants but is not provided by our competitors

H. PORTERS VALUE CHAIN ANALYSIS

- Value is the amount that buyers are willing to pay for what an organization provides them
and it is measured by total revenue
- Value chain: set of activities that organization carries out to create value for its customers

I. SIX FRITO LAY STRATEGIES FOR GLOBAL CUSTOMERS

J. BUSINESS INTEGRATION VERTICAL, HORIZON, CONGLOMERATE
- Primary sector businesses: focuses on extraction of materials, Secondary sector business:
manufacturing, Tertiary sector businesses: providing services
- Business integration growth achieved externally
- Horizontal Integration: Merges with a business in same level and industry; why? Achieve
economies of scale, reduces competition,
- Backwards vertical integration: Joins a business in same industry at earlier stage e.g.
secondary sectors buys a primary sector; why? Guarantee source of raw materials or
components, can deny competitors raw materials, benefit of increase profit
- Forwards vertical integration: Joins a business in same industry but at later stage e.g.
secondary sector buys primary sector; why? Guaranteed outlet for your product, deny
competitors outlet, boost profit
- Conglomerate: Joins a business in a completely unrelated market; why? Mainly, to spread
risk, spread management ideas, cross subsidization
K. GROWTH OPTIONS: WHERE TO PLAY, HOW TO WIN
- Corporate Portfolio Strategy: Rebalancing the portfolio to focus on growth
- Go-to-Market Transformation: Reinventing marketing and sales approaches and exploiting
pricing headroom
- Geographic Expansion: Tapping new markets
- Innovation: Introducing attractive new products and services
- M&A: Acquiring or partnering to access scale or new capabilities
- Business Model Innovation: Devising new models to address disruption or create or access
new demand
- Organizational Growth Enablers: Building a growth culture and eliminating internal barriers
to growth