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SingaporeBusiness ManagementQuick questions
Strategic Management
Quick questions on Strategic decision making explained: H2 Management of Business
6short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is choosing a competitive strategy?Show answer
Michael Porter argued that to gain a competitive advantage a firm should commit to one of three generic strategies:
What is stuck in the middle?Show answer
Porter's central warning is that a firm trying to do both cost leadership and differentiation, or committing clearly to neither, ends up stuck in the middle - with no clear advantage. It is undercut by cost leaders on price and out-classed by differentiators on value, losing both kinds of customer. So the firm must usually commit to one strategy to build a defensible advantage (though some large firms combine them through scale and technology).
What is implementing strategy?Show answer
Choosing a strategy is only half the task; implementation decides success. Implementation requires aligning the firm's structure, resources, culture and functional plans (marketing, operations, HR, finance) behind the strategy, communicating it, and managing the change. A sound strategy poorly implemented fails, which is why "strategy is easy, execution is hard" is a common refrain.
What is q1?Show answer
State Porter's three generic competitive strategies. [2 marks]
What is q2?Show answer
Explain what is meant by a firm being "stuck in the middle". [4 marks]
What is q3?Show answer
Analyse why a well-chosen strategy can still fail. [6 marks]
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