THE PAST YEAR QUESTIONS

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 .

  Answer :   

1.  BUYER POWER : Buyer power is the ability of buyers to effect the price they must pay for an item. It high when buyer have many choices of whom to buy from and low when their choice are few. 
2. SUPPLIER POWER : Supplier power is the suppliers' ability to influence the prices they charge for supplies . High when buyers have few choices of whom to buy and low when their choices are many . 
3. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES : High when there are many alternatives to a product or service and low when there are few alternatives from which to choose .
4. 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 . 
5. RIVALRY AMONG EXISTING COMPETITORS : High when competition is fierce in a market and low when competitor is more complacent .

OCTOBER 2012

 Explain four (4) organizational information cultures .

  Answer :

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 informations 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 .

  Answer :

    

    Porter has identified three generic business strategies for entering a new market which is

1. BROAD COST LEADERSHIP
2. BROAD DIFFERENTIATION 
3. FOCUSED STRATEGIES 

Broad strategies reach a large market segment, while focused strategies target a niche or unique market with either cost leadership or differentiation. 

• 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 .
• 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.
• 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.
• 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 . 

 Answer :

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