IF- Scenarios

Question 1

How to cut labor costs

Accepted Answer

1. Cross-train workers. 2. Cut overtime. 3. Hire more efficiently 4. Raise employee contribution to health-care premium. 5. Institute four 10-hour days instead of five eight-hour days. 6. Convert workers into owners (if they have a stake in the company they will work longer, and harderand constantly think of ways to cut costs in a way that they might not have done before). 7. Contemplate layoffs. 8. Institute across-the-board pay decreases. 9. Perforance-Pay Systems 10. Incentives-Programs and Competitions VAP ↑

Question 2

How to cut manufacturing costs

Accepted Answer

technology investments flexible production lines consolidate production space to gain economies of scale + accountability import parts outsourcing JIT: reduce inventories

Question 3

How to decrease costs of Finance

Accepted Answer

Have customers pay sooner. Pay supplier eralier Hedge currency rates Refinance your debt. Sell nonessential assets.

Question 4

If sales are flat and market share is flat

Accepted Answer

...that scenario could indicate that industry sales are flat and that your competitors are experiencing similar problems.

Question 5

What to analyze in a decline-in-sales problem

Accepted Answer

- overall declining market demand (e.g., soda sales have dropped as bottled water becomes the drink of choice) - the possibility that the current marketplace is mature or your product obsolete - loss of market share due to substitutions (e.g., video rentals & Netflix) - Price Changes - Competitor, Substitutes ? - Competitor - Substitute Promotion ?

Question 6

If sales and market share by volume are increasing but profits decline,

Accepted Answer

then you need to investigate whether prices are dropping and/or costs are climbing. However, if costs aren’t the issue, then investigate product mix and check to see if the margins have changed.

Question 7

If sales are flat and profits are taking a header,

Accepted Answer

...,you need to examine both revenues and costs. Always start with the revenue side first. Until you identify and understand the revenue streams, youcan’t make educated decisions on the cost side.

Question 8

Profit Scenario: If profits are declining because of rising expenses

Accepted Answer

... concentrate on operational and financial issues — i.e., COGS (cost of goods sold), labor, rent and marketing costs.

Question 9

If profits are declining, yet revenues have gone up,

Accepted Answer

...., review: changes in costs any additional expenses changes in prices the product mix changes in customers’ needs

Question 10

If a product is in its emerging growth stage,

Accepted Answer

...concentrate on R&D, competition and pricing.

Question 11

If a product is in its growth stage,

Accepted Answer

......emphasize marketing and competition.

Question 12

If a product is in its mature stage,

Accepted Answer

......focus on manufacturing, costs and competition. agressive promotions agressive pricing strategies product modification

Question 13

If a product is in its declining stage...

Accepted Answer

define niche market analyze the competition’s play think exit strategy think relaunch strategy

Question 14

Profit Scenario: If profits are declining because of a drop in revenues,

Accepted Answer

concentrate on marketing and distribution issues.

Question 15

If you lower prices and volume rises, and then you are pushed beyond full capacity,

Accepted Answer

...your costs will shoot up as your employees work overtime, and consequently profits will suffer

Question 16

Prices are stable only when

Accepted Answer

..three conditions are met: The growth rate for all competitors is approximately the same. The prices are paralleling costs. The prices of all competitors are roughly of equal value.

Question 17

Unless all parties change their prices together (e.g., airline tickets or gas prices).

Accepted Answer

the volume and the costs are easier to change than the industry price levels,

Question 18

The perfect strategy for the high-cost producer

Accepted Answer

one that convinces competitors that market shares cannot be shifted Therefore, the highest practical industry prices are to everyone’s advantage price wars are detrimental and everyone will profit more bybkeeping prices high.

Question 19

Back of the mind thoughts

Accepted Answer

How the Internet affects the company should be in the back of your mind in every case. How the economy affects the company should be in the back of your mind in every case. How the competition — both internal to the industry and external (substitutions) — affects the company should be in the back of your mind in every case.

Question 20

How to reduce Inbound logistic costs?

Accepted Answer

Change suppliers Renegotiate with suppliers Consolidate suppliers Import parts Reduce inventories JIT

Question 21

How to reduce Overhead costs?

Accepted Answer

Reisekosten Verhandlungen zum Zinsnachlass Reduce IT-Costs Cloud Computing Services Reduce Phone Bill - Skype Services Reduce Staff Overheads - Booking, Payroll (Tarife) Rent rather than hire Equipment

Question 22

How to increase liquidity

Accepted Answer

Reduktion der Investmenttätigkeit Reduktion Lagerbestnd Reduktion Forderungsbestand Verkauf von Vermögenswerten

Question 23

How to increase Sales

Accepted Answer

- Fokussierung auf A-Kunden - Clever Pricing - Marketing: - Sales Incentives Program - Free samples - Customer-Reward-Program - Tie your customers - Use Content and Social Media Marketing (free) => Acces to qualified leads. More channels to sell your produc Lower costs to acquire customers. Higher conversion rates

Question 24

How can we increase Sales by Volume?

Accepted Answer

PLACE Increase distribution Channels PROMOTION Invest in marketing campaign PRICE adjust prices l discounts PORTFOLIO Analysis Diversification !Canibalization! Acquire a competitor Create seasonal balance High Barriers to Entry - Niches

Question 25

If you cannot Change your Environment...

Accepted Answer

..use the Classic Approach. The world is forecastable Basics of competition is stable The Advantage, once obtained, is sustainable. Given that the you cannot change the enivornment, classical firms seek the optimal position within it. Positioning = Superior size, differentiation, core capabilities Michael Porter, Barney, Market Share, BCG

Question 26

If you cannot predict the development of the industry within reasonable bunds...

Accepted Answer

.....you need an adaptive approach experiment and identify new sources of advantage more quickly and cheaply than others Create valid range of strategic options for trial and experimentation Select the most successful ones to scale up Once environment changes, they iterate on this experimentation loop to ensure that they continuoujsly refresh their strategy

Question 27

If you cannot predict the exact path of development but can influence the market by collaborating with others

Accepted Answer

...use the Shaping approach try to co-evolve quickly and leverage outside stakeholders to share risks and thrive together despie protracted uncertainty Engage Outside partners Develop their influence to orchestrate the co-ecolution under uncertainty Iterate as changing environmental circumstances require changes in the underlying product or business model. => Influence Stakeholders to create Business opportunities ( Manhattan )

Question 28

If you face an Environment so harsh that you need a two pronged Approach to strategy

Accepted Answer

..use the Renewal Approach focus on short-term survival long-term: renew the strategy to return to one of the four other approaches for future flourishing focus and economize -> reinvention mode "resurrecting" = economize to stay alive long enough to find another approach, suitable to then less harsh environments

Question 29

If you want to Change behavior of your People..

Accepted Answer

- Intrinsic motivation, the sense of pride and purpose in doing meaningful work and doing it well - Authentic feedback from other people, including peers, supervisors, senior leaders and customers - Formal rewards and recognition, such as monetary incentives and assignments to important projects

Question 30

If you are a private-equity firm,

Accepted Answer

Compare the price and demands for the Private-Equity Portfolio and their Core Products -> if favorable, rise in stock price

Question 31

If you want to restructure,...

Accepted Answer

Design and groundwork Develop a central organization template and case for change Create and iterate business unit organization design, based on central guidance Map existing roles to new organization, adhering to all HR and legal standards Change management Plan towards implementation of new organization Key areas of work: Project management of change management program Process definitions for major processes affected by reorganization Risk management and assurance Critical systems updates needed ahead of implementation Communications to the business unit concerning the reorganization Ensure consistent application across business units and lay out change key performance indexes Long-term planning Develop action plan to embed new organization

Question 32

if the market is in ist indroduction Phase,

Accepted Answer

we see increasing growth rates, technological innovation, fight for new customers, changing market shares

Question 33

if the market is in ist growth Phase,

Accepted Answer

we see strong market growth mostly minor technological changes customers are well defined

Question 34

If the market is in ist Maturity Phase

Accepted Answer

High stability of customers and their behavior Stable market shares decreasing growth rates increasing rivalry among competitors

Question 35

If the market is in ist Aging phase

Accepted Answer

decreasing demand decreasing number of competitors

Question 36

If we are a Commodity-manufacturer

Accepted Answer

Marketing: Corporate Management Style: Cost Management Competiton: International, bigger, fewer Sales: Availability-based Distribution: 80-20 (ABC Analysis) Price: Low Costs: Very low Profit: Low

Question 37

If we are a manufacture a unique Product

Accepted Answer

Marketing: ExplainManagement Style: VisionaryCompetiton: NoneSales: PioneeringDistribution: Direct SellingPrice: Very HighCosts: Very HighProfit: High - Medium

Question 38

If we market a differentiated product...

Accepted Answer

Marketing: CompetitiveManagement Style: StrategicCompetiton: FewSales: Relative Benefit)Price: HighCosts: MediumProfit: High

Question 39

Hohe Kosten im Verpackungsprozess..

Accepted Answer

... Gründe: Lange Rüstungszeiten Leerlauf Variantenvielfalt, Komplexität Daten: ABC-Analysie: Produkte auf Profitabilität untersuchen und schauen, bei welchem Produkt die Kosten angemessen sind Controlling-System auf Verpackung fokussieren KPI entwickeln: Durchlaufzeiten des Produktes vs. Durchlaufzeit in der Produktion, Anzahl Arbeitsschritte in Produtkion vs. Verpackung Lösung: Minimierung der Durchlaufzeiten Minimierung der Abreitsschritte Standardisierung Nur profitable Produkte Arbeitsschritte optimieren Kostenkontrolle Controlling ABER: Akzeptanz der Händler, etc.

Question 40

Gewinnschwelle berechnen

Accepted Answer

CB1 * X1 + CB2 * X2 = FC

Question 41

relatively high inventories

Accepted Answer

... products that have high variance in demand / seasonal demand ... high prpbability of default of suppliers

Suaheli (Subject) / IF- Scenarios (Lesson)