Past Year Question for Chapter 2 MGT300

MARCH 2012

Porter's Five Force Model is a one of common tools used in industry to analyze and develop competitive advantages . List and describe each of the five (5) forces in Porter's Five Force Model .

1. Buyer Power which is the ability of buyers to affect the price they must pay for an item. Factors used to assess buyer power include number of customers,their sensitivity to price, size of orders, differences between competitors,and availability of substitute products. If buyer power is high, customers can force a company and its competitors to compete on price, which typically drives price down.
2. Supplier Power the suppliers ability to influence the prices they charge for supplies. Factors used to appraise supplier power include number of suppliers,size of suppliers,uniqueness of services,and availability of substitute products.If supplier power is high,the supplier can influence the industry.
3. Threat of Substitute Products or Services which is high when there are many alternatives to a product or services and low when there are few alternatives from which to choose.For example, travelers have numerous substitutes for airlines transportation including automobiles,trains and boats.
4. Threat of New Entrants which is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
5. Rivalry Among Existing Competitors which is high when competition is fierce in a market and low when competitors are more complacent.

OCTOBER 2012

 Explain four (4) organizational information cultures .

1. INFORMATION FUNCTIONAL CULTURE : Employee use information as a means of exercising influence or power over others .
2. INFORMATION SHARING CULTURE : Employees across departments trust each other to use information (especially about problems and failures) to improve performance.
3. INFORMATION INQUIRING CULTURE : Employees across departments search for information to better understand the future and align themselves with current trends and new directions. .
4. INFORMATION DISCOVERY CULTURE : Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.

Describe three (3) Porter Generic Strategies . Support your answer with example.

1. BROAD MARKET AND LOW COST :  Its business strategy is to be the low-cost provider of goods for the cost-conscious consumer. For example , Walmart competes by offering variety of product at low prices .
2. BROAD MARKET AND HIGH COST : Its business strategy offers a variety of specialty and upscale products to affluent consumers. For example, Neiman Marcus offering a broad range of differentiated product at high prices.
3. NARROW MARKET AND LOW COST : Its business strategy is to be the low cost provider of shoes . For example , Payless Shoes offering a specific product, shoes ,at low prices.
4. NARROW MARKET AND HIGH COST : Its business strategy allows it to be a high cost provider of premier designer jewelry to affluent consumer.

MARCH 2013

Describe five (5) primary value activities .

1. INBOUND LOGISTICS : Acquires raw materials and resources and distributes manufacturing as required .
2. OPERATIONS : Transform raw materials or inputs into goods and services .
3. OUTBOUND LOGISTICS : Distributes goods and services to customers.
4. MARKETING AND SALES : Promotes, prices and sell products to customers .
5. SERVICES : Provides customer support after the sales products to customers.

The End of Chapter 2