1.

How could a firm protect itself and grow in an industry characterised by high bargaining power of
suppliers?

Group of small suppliers such as dairy farmers, may form cartels or cooperatives (groups of
producers trading and negotiating under a single name) to increase their bargaining strength by
increasing their concentration. Although this can also occur among buyers, it is much more common
among suppliers. Global scale cartels, such as OPEC, the international Coffee Organization and some
labour unions can exert very significant forces on industries and, in the case of OPEC, even on entire
countries. (buku paket)

To protect itself and grow a firm can do these things: (internet)

1. The first step is to evaluate the cost and the value of the entire supply chain. With proper
understanding, a supplier’s importance to the process can be evaluated

2. Another important step is to build two way relationships with the suppliers. This can enable both
parties to work together to achieve lower production costs that benefit everyone.

3. Companies need to accept accountability for their end of the process. This means putting in orders
on time and not requiring unnecessary changes later on.

4. There need to be service level agreements and performance evaluation metricspredefined to keep
an objective measure of performance. This will allow clear expectations to be set and followed up
on.

5. In addition to penalties, incentives also need to be established to encourage value creation through

optimized production and delivery times.

6. Critical information regarding the process needs to be shared with the supplier to ensure that there
are no delays or unnecessary costs incurred. Open communication channels with the required levels
of security and confidentiality will help strengthen the relationship with suppliers.

7. There need to be plans in place for exceptional circumstances and emergencies. If processes are in
place then the risk associated with them can be minimized.

8. Contingency plans should be put together to avoid disruption to the value chain. Natural disasters or
other disruptive events can be managed smoothly if all parties know the plan of action.

9. Honesty should be rewarded in cases where an exceptional situation occurs and a warning is issued
in time and up front. No penalties should be put on the supplier in these situations.

10. Meaningful meetings  that focus on the critical issues for value chain improvement as well as
relationship development can strengthen the buyer seller link . 

2. How do dynamic capabilities enable a company to adapt its internal and external competences in
order to survive in a rapidly changing environment? (slides tapi internal sama external gak yakin)

Dynamic capabilities are the ability of organisations to integrate, build, and reconfigure internal and
external competencies to address rapidly changing environments. This definition opens the
opportunity to incorporate managerial action into discussions of the sources of competitive
advantage.
The Resource-Based View (RBV) emphasises on the deployment and protection of unique resources
(existing resources – choice of which resources to leverage on. The Dynamic Capabilities View
emphasises resource development and renewal (regeneration of a firm’s knowledge base) to sustain
competitive advantage.

When there are changes in the external environment, such as changes in customer demand, prices
and technology, a company can gain competitive advantages by having unique resources, or
responding faster and more effective than its competitors.

Internally, the company can also gain strategic advantages by the adoption of an innovation strategy
through more research and development, innovation in management, exploration of new markets
and a reconfiguration of its value chain.

3. What is the role of social and psychological factors in analysing differentiation?

The problem with analysing product differentiation in terms of measurable performance attributes is
that it does not delve very far into customers underlying motivations. Very Few goods or services are
acquired to satisfy basic needs for survival; most buying reflects social goals and values in terms of
desire to find community with others, to establish one’s own identity, and to make sense of what is
happening in the world. Maslow proposed a hierarchy of human needs. Once basic needs for
survival are established, there is a progression from security needs, to belonging needs, to esteem
needs, to self-actualisation needs. Most suppliers of branded goods recognised that their brand
equities have much more to do with status and conformity than to survival or security. What is so
different about Louis Vuitton’s popular, much-copied brown and black note? What is so different in
the commonly recognised designs of Gucci hand bags? These customers are willing to pay a
premium price for these branded products, not just for the physical features of these products, but
also for intangible differentiation of self-identity and social affiliation.

For these brands advertising and promotion have long been the primary means of influencing and
reinforcing customer perceptions. Increasingly, consumer goods companies are seeking new
approaches to brand development that focus less on product characteristics and more on brand
experience, shared values and emotional dialogue

If the key customer needs that a product satisfies are self-identity and social affiliation, the
implications for differentiation are far reaching. In particular, to understand customer demand and
identify profitable differentiation opportunities requires not only an analysis of its products and
characteristic, but also of customers, their lifestyles and aspirations, the relationship of the product
to these lifestyles and aspirations.

4. Does a firm need to diversify across different businesses in order to benefit from economies of
scope? (hal 239-240 buku paket tapi gak yakin jawaban yes atau no)

5. What is the difference between the balanced scorecard methodology, developed by Kaplan and
Norton, in comparison to strategy performance evaluation based on financial criteria?