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business
strategic management

Questions and Answers of Strategic Management

what payments will cost when they have to be made; L01
what the value of foreign assets and liabilities might be in the future. L01
Explain what the risks related to foreign exchange exposure are for British Airways and Live Nation. L01
Explain why managing foreign exchange exposure is often a particular difficulty for managers involved in THE. L01
What would be the impact to the company if the exchange rate changed to $1.65 to the pound rather than $1.40 in the example? L01
Consider what steps managers in this company might take to deal with the issue in this example? L01
What would be the impact if the hotel company took out a loan of AU$10 million to pay for the hotel? L01
Explain why if a country’s currency is historically very volatile it might deter investment in physical assets such as hotels in that country? L01
What steps might the company as described here take to protect itself against economic risks? L01
What other examples of economic risk affecting THE organizations you are familiar with could you cite? L01
What are the main limitations of financial information you need to be aware of? L01
What are the three categories of foreign exchange risk? Provide an illustration of each of these risks from THE. L01
Explain the possible impact of seasonality on cash flows in THE. L01
Consider what the implications of the seasonality of cash flow might be for a company such as Live Nation. L01
Can you cite other examples of companies involved in THE with such seasonal cash flows and what are the implications for managers in these companies? L01
Explain the issues that the seasonality of cash flow might cause for managers in this case. L01
Explain the steps such a company might take to reduce the impact of this seasonality of cash flow? L01
Review the information on Interjet (Table 5.6). L01
Identify foreseeable difficulties in the future cash flow position presented. L01
How easily predictable are the cash flows? L01
How seasonal or cyclical are the cash flows? L01
Can the company keep within its borrowing limits? L01
Is the company generating enough cash to ensure its survival? L01
Does the company require further credit facilities? L01
How long does it take customers to pay the company? L01
How quickly does the company pay suppliers and others? L01
explain the term market and describe the ways by which markets can be defined; L01
understand the importance of markets and provide relevant examples from THE; L01
explain the ways that markets can be segmented and be able to apply the principles to THE contexts; L01
understand the concepts of targeting and positioning in relation to THE contexts; L01
explain the term product, describe Kotler’s five levels of product benefit and be able to illustrate the concepts with relevant THE examples; L01
understand the stages in and uses of the product life cycle and its derivative application in tourism – the Tourist Area Life Cycle; L01
explain the concept of a product portfolio and understand the underlying cash-flow implications; L01
understand the composition and limitations of selected strategic models such as PLC, the BCG Matrix and the GEC Matrix. L01
Why is worldwide hospitality relatively less concentrated than many other industry sectors? L01
Consider what the factors might be making worldwide hotels more concentrated. L01
Explain how the term market can be defined and analysed. L01
Explain why a detailed definition and understanding of the market is so important for THE managers. L01
Explain the meanings of market attractiveness and supplier concentration and illustrate your answer by providing examples from ? L01
Explain the approach to product development taken by PGL. L01
Why might PGL’s products be attractive to the Indian market? L01
Consider what advantages and possible disadvantages belonging to a powerful branded chain bring to Moxy. L01
Consider the reasons why Marriott is developing its Moxy brand. L01
Explain the potential differences in positioning a destination rather than a THE product belonging to a single company. L01
Explain why Queensland might need a number of sub-brands and explain their relationship to the umbrella brand. L01
Explain what is meant by first mover advantage and a me too strategy citing examples of both you are familiar with from THE. L01
Consider what advantages Singapore and Dubai might be able to exploit in developing first mover advantage. L01
Explain the potential advantages and disadvantages of early adopters in this case. L01
Consider other successful or unsuccessful introductions of technology in THE and provide relevant examples. L01
Explain why segmenting the market is so important for THE managers and outline the main ways in which it can be carried out. L01
Explain and illustrate, with relevant THE examples, Kotler’s five levels of product benefit. L01
Explain what criteria might be used in selecting potential target segments. L01
Explain the major differences between B2B and B2C marketing using relevant THE examples to illustrate your answer. L01
Distinguish between price skimming and penetration strategies. L01
Explain what is meant by a product portfolio. L01
Explain the importance of cash flow to an understanding of the BCG matrix. L01
Explain the major benefits and potential difficulties of using the BCG and GEC matrices. L01
explain what is meant by the macro-environment; L01
explain Ginter and Duncan’s mechanisms of carrying out macro-environmental analysis; L01
describe the components of each of the five STEEP influences and be able to apply them to relevant THE contexts; L01
explain how the STEEP factors are interlinked and interrelated in THE contexts. L01
Explain the meaning of the term ‘macro-environment’. L01
Explain how the business, micro-environment and macro-environment relate to each other. L01
Explain the stages in a macro-environmental analysis. L01
Explain why an understanding of socio-demographic influences might be important for airline managers. L01
What sort of demographic factors might lead to greater air travel in the future? L01
Explain the ways in which airline product distribution has changed in recent years. L01
Explain the changes taking place regarding aircraft types and assess the impact of the changes on airline route networks. L01
Why is airline travel so cyclical? L01
Explain the ways in which airlines assess their performance. L01
Explain the ways in which Scandic make their environmental programme into a central part of their competitive offering. L01
What risks might there be for the company in taking such a prominent environmental stance? L01
Explain why airline managers need to take account of environmental concerns. L01
Consider which stakeholder groups are likely to be influential when making decisions about airport infrastructure projects. L01
Explain how Service Dominant Logic might be applied to THE contexts.P-696
Explain what is meant by Service Dominant Logic.P-696
Explain the concept of the Service Profit Chain and its relevance to THE organizations.P-696
Describe and distinguish between the two conceptual approaches to strategic management which have been introduced in this text.P-696
Explain with an example from THE what is meant by the value system.P-696
What is meant by blockages and linkages in the value chain?P-696
Explain the relationships between primary and secondary activities.P-696
Explain the idea of the business as a value chain.P-696
What factors might prevent outsourcing being developed more widely in THE contexts?P-696
What do you consider the motivations for outsourcing to be in the airline industry?P-696
What steps might British Airways take to defend its core competencies?P-696
What threats might emerge to challenge British Airways’ core competencies?P-696
Explain the different ways in which resources might be analysed.P-696
Explain what is meant by resource immobility and resource substitution and explain their relevance in THE contexts.P-696
Explain what is meant by free resources in THE contexts.P-696
Consider the issues that might arise from public and private sectors working together in the way described.P-696
What are the reasons for public sector bodies forming separate companies for developing and managing events?P-696
Describe and distinguish between the two conceptual approaches to strategic management which have been introduced in this chapter.P-696
Provide an example of a core competence in a THE organization you are familiar with.P-696
Define and explain the relationships between resources, competencies and core competencies.P-696
What are the major purposes of internal analysis?P-696
explain the developing academic debate relating to Service Dominant Logic.P-696
explain the concept of the Service Profit Chain and how it relates to THE organizations;P-696
explain why established frameworks and analytical tools may be less relevant in a service industry context;P-696
explain the potential benefits of collaboration with suppliers, distributors and customers for THE organizations;P-696
explain how the configuration of value adding activities can improve business performance;P-696

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