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Chapter 5 Functional and Competitive Strategies

CHAPTER 5 FUNCTIONAL AND COMPETITIVESTRATEGIES

LEARNING OUTCOMESUse this Learning Outline as you read and study the chapter:

5.1 Describe the f !cti"!#$ str#te%ies #! "r%#!iti"! !ee's #!' e()$#i! h"* th"se str#te%ies #rei+)$e+e!te' #!' e,#$ #te'.5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$ies.5. Describe the 'iffere!t c"+)etiti,e str#te%ies.5./ Disc ss h"* c"+)etiti,e str#te%ies #re i+)$e+e!te' #!' e,#$ #te'.

TE0T OUTLINE

Acti,e Le#r!i!% Hi!tHand out an empty chapter outline or one with key information missing for the students to use in notetaking. This outline will help the students to organi e the information! while keeping the studentsactively listening for the information needed to complete the outline.

Strategic Management in Action Case #1: Driving for Success"ou may wish to open with a #uestion and $nswer e%ercise. The Toyota vignette illustrates the interrelationships of an organi ation&s functional strategies and

their contri'utions to the company(s success. $dditionally! you may want to review what a learningorganization is and link Toyota&s two main principles with their status as a learning organi ation.

#uestions to connect previous discussion with this chapter)* +hat is Toyota(s competitive advantage ,* +hat is Toyota(s core competency that provides the 'asis for their competitive advantage,* +hat advantages does the Toyota five-day custom car manufacturing system provide for the

marketing department,* How can this manufacturing pace 'e sustained, Can&t other manufacturers imitate the Toyota

system,

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LEARNING OUTCOME 5.1 DESCRI E THE FUNCTIONAL STRATEGIES ANORGANI2ATION NEEDS3 AND E0PLAIN HO4 THOSESTRATEGIES ARE IMPLEMENTED AND EVALUATED

F8 CT79 $: ST;$T6anagement in $ction highlight. =ivide the class into groups of B-5 students to work on the S+9T!and then ask several of the groups to report their findings. $nother method would 'e to divide the classinto B groups ?or multiples of four@. 9ne group identifies the strengths! another group the weaknesses!etc. $sk each group to report their findings to the class.

Str#te%ic M#!#%e+e!t i! Acti"! Super Eowl and i a3. =iscuss whether to try to meet peak demand does it lead to loyalty, 7s it a weakness if a company

cannot meet demand on that particular day. 7f you cannot supply your customers you open the door

to rival suppliers and you may lose some to other pi a-makers if you turn them away.1. $ S+9T analysis may reveal if production or delivery capacity are inadeIuate for the peak demandor if there may 'e e%cess capacity.

C. What "unctional Strategies Does an Organi ation $ee%!F !cti"!#$ 6"r ")er#ti"!#$7 str#te%ies are the short-term! goal-directed decisions and actionsof the organi ation(s various functional units ?Figure 5.1@.

$ll organi ations perform three 'asic functions as they create and deliver goods and services)



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3@ roduct Strategies ?design! production-operations! marketing@1@ eople Strategies ?human resources@4@ Support rocess Strategies ?information and financial-accounting systems@

3. F !cti"!#$ Str#te%ies 8 The Pr"' cta@. roduct design strategies typically involve an organi ation(s ;J= function

'@. 9nce products are ready to 'e produced! production-operations strategies ensuec@. e%t! marketing strategies are implemented

1. F !cti"!#$ Str#te%ies 8 The Pe")$ea@. Hi%h9)erf"r+#!ce 4"r: Pr#ctices are human resource policies and practices thatlead to 'oth high individual and high organi ational performance.

'@. Ta'le 5.3 lists some of the high-performance work practices that have 'een identified.These types of H; strategies can

?3@ 7mprove knowledge! skills and a'ilities of organi ation(s current and potential employees

?1@ 7ncrease employees( motivation?4@ ;educe loafing on the Ao'?B@ Help retain Iuality employees?5@ 6ncourage nonperformers to leave the organi ation

c@. Strategic choices include)i. aking sure they have the knowledge and skills to do their Ao'siii. Helping them do their Ao's 'etter ?orientation and training@iv. $ssessing how well they do those Ao's and making needed corrections

?performance appraisal and disciplinary actions@v. >otivating high levels of effort and compensating them fairly and

appropriately ?compensation and 'enefits@vi. 9ther H; 7ssues ?employee relations! Ao' design! diversity efforts!

workplace safety and health! workplace mis'ehavior@

vii. $n organi ation(s H; policies reflect its commitment to and treatment of itsemployees. >ust closely align with those other strategies to assure that theright num'ers of appropriately skilled people are in the right place at theright time and that the organi ation(s workforce is 'eing used effectivelyand efficiently.

4. Functional Strategies The Support rocessa@. 9rgani ations have two main support processes information systems and

financial-accounting systems '@. 7nformation affects how effectively and efficiently organi ational mem'ers can do

their work c@. Two strategic decisions most associated with the organi ation(s information system

are the choice of system technology and the choice of types of informationsystems needed

d@. Financial-accounting systems provide strategic decision makers with informationa'out the organi ation(s financial transactions! accounts! and standing

e@. Strategic choices include)i. Collecting and using financial and accounting data

ii. 6valuating financial performanceiii. =oing financial forecasting and 'udgetingiv. =etermining the optimum financing mi%



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v. 6ffectively and efficiently managing the financial-accounting functionalarea

Str#te%ic M#!#%e+e!t I! Acti"! :oading the $irplane 7n light of all the delays and flight cancellations the airlines industry e%perienced in Summer 122K!

have the students discuss some ideas on how the airlines might adopt some production-operationsstrategies that might make each airplane(s turnaround at the gate faster.

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LEARNING OUTCOME 5.- E0PLAIN 4HAT COMPETITIVE ADVANTAGE IS AND4HAT IT IMPLIES

$. Competitive A%vantage3. 7s a key concept of strategic management ?getting it and keeping it is what managing

strategically is all a'out@1. Sets an organi ation apart ?its competitive edge@

4. 7s what an organi ation(s competitive strategies are designed to e%ploitB. 7mplies that there are other competitors also attempting to develop competitive advantageand attract customers

5. $n organi ation does something that others can(t do or does it 'etter than others do?distinctive capa'ility@

L. $n organi ation has something that other competitors don(t ?uniIue resource@K. Can 'e eroded easily ?and often Iuickly@ 'y competitors( actions

E. &n%erstan%ing the Competitive 'nvironment 3. Competition is everywhere. >ost industries and organi ations have e%perienced at some

point.1. What is !ompetition?

a@ C"+)etiti"! is when organi ations 'attle or vie for some desired o'Aect or outcomeD typically customers! market share! survey ranking! or needed resources.

Str#te%ic M#!#%e+e!t i! Acti"! "escri#e situations$ outside #usiness and athletics$ where competition is taking place%

$nswers will vary 'ased on the students and their 'usiness and life e%periences.

4. Who are !ompetitors?Competitors can 'e descri'ed according toa@ 7ndustry erspective

?3@ 7dentifies competitors as organi ations that are making and selling the same or verysimilar good or service.

?1@ =escri'es industries according to the num'er of sellers and the degree of differentiation ?i.e.! similarities or differences of the products or services@.(a) The num'er of sellers and the level of product-service differentiation will affect

how intensely competitive the industry is.(b) The most intense competition is pure competition where there are many

sellers and no differentiation e%ists among the sellers. '@ >arket erspective

?3@ Competitors are organi ations that satisfy the same customer need.?1@ 7ntensity of competition depends on)

(a) How well the customer(s need is understood or defined(b) How well different organi ations are a'le to meet that need

c@ Strategic odel from Chapter 4.?1@Str#te%ic %r" ) is a group of firms competing in an industry that have similar

strategies! resources and customers.?4@ $ single industry could have a few or several strategic groups depending on what

strategic factors are important to customers.(a) Two strategic factors! important to customers! used in grouping competitors are

price and Iuality.(b) 7mportant strategic factors! or strategic dimensions! used to determine an

organi ation(s competitors are different for every industry and can 'e different

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even for different industry segments.(c) Ta'le 5.1 lists some dimensions that might 'e used to distinguish strategic

groups.?B@ The most relevant competitors are those in an organi ation(s own strategic group.?5@ :evel of intensity of competition from this perspective depends on)

(a) How effectively each competitor has developed its competitive advantage(b) The competitive strategies used 'y each competitor in the strategic group

?L@ Controversy e%ists over whether or not specific! identifia'le strategic groups evene%ist.(a) These Iuestions generally concern)

(1) The factors that are used to define a strategic group(2) How those factors are chosen and used to separate specific and identifia'le

groups

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1. ;efining and sharpening its sustaina'le competitive advantage ?in uniIue resources or distinctive capa'ilities@ provides the 'asis for an organi ation(s competitive strategy.

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Le#r!i!% Re,ie* Le#r!i!% O tc"+e 5.- &s competition an issue for all organizations? "iscuss%

* Competition is a given for all organi ations! regardless of si e! type! or geographic location. 6vennot-for-profit organi ations compete for resources and customers.

What is competitive advantage?* C"+)etiti,e #',#!t#%e is what sets an organi ation apartDits competitive edge.

!ompare and contrast the three approaches to defining competitors%* The i!' str= )ers)ecti,e identifies competitors as organi ations that are making the same

product or providing the same service.The +#r:eti!% )ers)ecti,e says competitors are organi ations that satisfy the same customer

need.The str#te%ic %r" )s )ers)ecti,e identifies a group of firms competing in an industry that have

similar strategies! resources and customers. What role do resources and distinctive capa#ilities play in gaining competitive advantage?

* 9rgani ations will develop strategies to e%ploit their current resources and capa'ilities or to viefor needed-'ut-not-owned resources and capa'ilities to pursue and attain desired outcomes suchas customers! market share and resources. They do this while other organi ations ?few to many@are doing e%actly the same thing. Competitive advantage! 'y its very nature! implies trying to gainthe edge on others. $s organi ations strive for a sustaina'le competitive advantage! the stage forcompetitionDintense! moderate! or mildDis set.

"efine competitive strategy% What's the connection #etween competitive advantage and competitive strategy?* C"+)etiti,e str#te%= is the way organi ations set themselves apart to create a sustaina'le

competitive advantage.* The choice of a competitive strategy is 'ased on the competitive advantage?s@ that the

organi ation has 'een a'le to develop.

LEARNING OUTCOME 5.

DESCRI E THE DIFFERENT COMPETITIVE STRATEGIES$lthough it may seem there are numerous ways an organi ation competes! the num'er ofcompetitive strategies is actually few of possi'le types of competitive strategies! there are actually alimited num'er of ways to descri'e how an organi ation competes.

$. Tra%itional Approaches to Defining Competitive Strateg3. (iles and Snow's )daptive Strategies ?3NKO@ ?Ta'le 5.4@)

a@ *ased on the strategies organizations use to adapt to their uncertain competitiveenvironments%

'@ +enerally #een supportive of the appropriateness of these strategies for descri#ing how

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organizations are competing%c@ Pr"s)ect"r Str#te%=

?3@ Strategy in which an organi ation continually innovates 'y finding and e%ploitingnew product and market opportunities.

?1@ rospector(s competitive strength is a'ility to)(a) Survey a wide range of rapidly changing environmental conditions! trends and

situations to create new products and services to fit this dynamic environment.?4@ rospector(s competitive strategy is to continually innovate! develop and test new

products and services ?i.e.! find new directions to pursue@.?B@ Constant search for innovation creates uncertainties for prospector(s competitors

who never know what(s going to happen ne%t or what to e%pect.?5@ 7f prospector can develop new products or services that the market desires and is

willing to pay for! it has a competitive advantage.?L@ 6%amples) Fo% Eroadcasting etwork and >TM known for innovative television

network programming and willingness to pursue new directions 'ased on its a'ilityto assess environmental trends.

'@ Defe!'er Str#te%=?3@ Strategy used 'y organi ations to protect current market share 'y emphasi ing

e%isting products and producing only a limited product line.?1@ =efenders have well-esta'lished 'usinesses that they(re seeking to defend.?4@ =efender has success with this strategy as long as the primary technology and

narrow product line remain competitive.?B@ 9ver time! defenders can carve out and maintain niches within their industries that

competitors find difficult to penetrate.?5@ 6%ample) :incoln 6lectric of Cleveland! 9H $nheuser-Eusch 7E>

c@ A!#$=&er Str#te%= strategy of analysis and imitation.$naly ers?3@ +atch for and copy the successful ideas of prospectors?1@ Compete 'y following the direction that prospectors pioneer

?4@ Thoroughly analy e new 'usiness ideas 'efore Aumping in?B@ Systematically assess and evaluate whether the move is appropriate for them?5@ 6%amples) 8nilever(s Suave shampoo and skin care products! C9S>7 Corporation

?education! entertainment and 'usiness software@

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(2) They(re not a'le to e%ploit their current resources and capa'ilities?1@ This is !"t a recommended competitive strategy for developing a competitive

advantage.?4@ Thought of as a default strategy! almost a nonstrategy position.?B@ +ithout significant strategic changes! a reactor will always 'e in a weak

competitive position.?5@ 6%amples) Sears Si ler 7nternational! 7nc. =igital 6Iuipment Corporation

F"r ;" r I!f"r+#ti"! 8 The C")=c#t Ec"!"+= $sk the students to evaluate Cloro%(s decision to market ;eady>op and determine what strategy is

'eing used. +as it an offensive or a defensive move on Cloro%(s part, $sk the students if they can think of any other e%amples of copycatting, 7n the soft drink 'usiness

every new flavor is virtually matched immediately 'y a competing flavor from a rival. =iet epsiand =iet Coke have spawned cherry! lemon! lime! and vanilla flavored varieties! as well as C1! a lowcar' Coke and epsi 9ne a very low calorie add-on to the =iet epsi line. The key seems to 'e to notallow any competitor an advantage for any length of time. Fast-food makers have done the samething with gourmet salads. +endy(s started the war with a very successful introduction of gourmetsalads and >c=onald(s followed with several varieties within months. $utomo'ile financing and

re'ates are another e%ample where there is little difference 'etween competitors. How did rocter and


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(1) Chooses to compete on the 'asis of having the lowest costs.(2) The main goal is to have the lowest ?total unit@ costs in the industry

?emphasis on costs! not prices@.(a) +ith the lowest costs in its industry! the cost leader)

(1) Can potentially charge the lowest prices and(2) Still earn significant profits! even during a price war

(b) Successful pursuit of the cost leadership strategy(1) 6verything the cost leader doesDevery strategic decision made! every

strategic action takenDis aimed at keeping costs as low as possi'le.(2) 6fficiency in all areas of operations is the main o'Aective! and all resources!

distinctive capa'ilities! and functional strategies are directed at that.(3) The cost leader isn(t going to have deep and wide product lines as

providing these product or service variations is e%pensive.?B@ !The cost leader has chosen to compete on the 'asis of low costs! not on 'eing different than competitors.

?5@ The cost leader will market products aimed at the average customer.?L@ :ittle or no product frills or differences will 'e availa'le. o fancy artwork or

plush office furniture at corporate headIuarters and no corporate Aets.?K@ Cost leader won(t have an ela'orate high-tech! multimedia interactive +e' site

unless it(s an e%tremely cost effective and efficient way to reach masses of potential customers.

?O@ 6%amples) ayless Shoe Source! Collective Erands! ucor Corporation and+al->art. $sk the students to identify common characteristics 'etween theseorgani ations3. 9ther characteristics of cost leaders include)

a. Strict attention to production controls '. ;igorous use of 'udgetsc. :ittle product differentiationDAust enough to satisfy what the mass

market might demandd. :imited market segmentationDproducts or services aimed at the

mass market

e. 6mphasis on productivity improvementsf. ;esources! distinctive capa'ilities and core competencies found in production-operations and materials management

1. =raw'acks of the cost leadership strategy)a. The main danger is that competitors might find ways of lowering

costs even further taking away the cost leader(s cost advantage. '. Competitors might 'e a'le to easily imitate what the cost leader is

doing and erode the cost advantage.c. Cost leader! in its all-out pursuit of lowering costs! might lose sight

of changing customer tastes and needs.?1@ Differe!ti#ti"! Str#te%=

a@ 9rgani ation competes 'y providing uniIue ?different@ products with features that)

i. Customers value!ii. erceive as different! andiii. $re willing to pay a premium price for

'@ The main goal of the differentiator is to provide products or services that are trulyuniIue and different in the eyes of customers.

c@ =oing this! the differentiator can charge a premium price 'ecause customers perceivethat the product or service is different and that it uniIuely meets their needs.

d@ This premium price provides the profit incentive to compete on the 'asis of differentiation.



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product line.1. ursues either a cost or differentiation advantage

a. Cost focuser competesi. Ey having lower costs than the overall industry cost

leader in specific and narrow nichesii. $lso successful if an organi ation can produce

comple% or custom-'uilt products that don(t lendthemselves easily to cost efficiencies 'y the industry(soverall cost leaders

'. =ifferentiation focuser can use whatever forms of differentiation the 'road differentiator might use! such as)

i. roduct featuresii. roduct innovations

iii. roduct Iualityiv. Customer responsivenessv. Speciali es in one or a few segments instead of all

market segments.c. $dvantages of the focus strategy)

i. The focuser knows its market niche well and can 'uildstrong 'rand loyalty 'y responding to changingcustomers( needs

ii. The focuser who can provide products or services thatthe 'road competitors can(t or won(t! will have theniche all to itself.

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a@ Happens when an organi ation isn(t successfully pursuing either a low-cost or a differentiation competitive advantage

'@ 9ccurs when an organi ation(s)3. Costs are too high to compete with the low-cost leader.1. roducts and services aren(t differentiated enough to compete with the

differentiator.c@ This is not a preferred or profita'le strategic direction.d@ Eecoming unstuck means making consistent strategic decisions a'out what

competitive advantage to pursue and then doing so 'y aligning resources!distinctive capa'ilities and core competencies.

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+, Contemporar -ie.s on Competitive StrategSome of the newer perspectives provide an e%panded! and perhaps more realistic! description ofwhat competitive strategies organi ations are using.

a% &ntegrated Low1!ost "ifferentiation Strategyi. Competitive advantage 'y simultaneously achieving low costs and high levels of

differentiation.ii. Technological advancements that make this hy'rid competitive strategy possi'le are)

a@ Fle%i'le manufacturing systems '@ Qust-in-time inventory systemsc@ 7ntegrated manufacturing systems

'. Qust 'ecause these technological advancements are availa'le and accessi'le doesn(tmean that every organi ation that uses them will 'e a'le to successfully implement anintegrated low-cost differentiation strategy.

Str#te%ic M#!#%e+e!t i! Acti"! De$$ $ classroom discussion may 'e 'eneficial! given that many of your students will 'e Iuite familiar

with =ell computer. $sk your students to discuss whether they have ! or another C manufacturer. $sk your students how =ell has lost its market share and ask for suggestions on how it might regain the competitive edge it had.

#% (intz#erg's +eneric !ompetitive Strategiesi. Henry >int 'erg developed an alternative typology of si% possi'le competitive

strategies that 'etter reflected the increasing comple%ity of the competitiveenvironment.The following is taken from Figure 5.B) >int 'erg(s


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weapon.c@ Differe!ti#ti"! b= )r"' ct 'esi%! Competition on 'asis of providing

desira'le product features and design configurations offers wide selections of product features and different designs.

d@ Differe!ti#ti"! b= ? #$it= =eliver higher relia'ility and performance at acompara'le price. Superior product Iuality pursued at a compara'le price.

e@ Differe!ti#ti"! b= )r"' ct s ))"rt 6mphasi ing customer support services.roviding all-encompassing 'undle of desired customer support services.

f@ U!'iffere!ti#te' str#te%= o 'asis for differentiation or following a copycatstrategy.

ii. The verdict on >int 'erg(s alternative generic competitive strategies typology appearsto have merit.

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Le#r!i!% Re,ie* Le#r!i!% O tc"+e 5. "escri#e each of (iles and Snow's four adaptive strategies?

* Pr"s)ect"r str#te%= is one in which an organi ation continually innovates 'y finding ande%ploiting new product and market opportunities.

* Defe!'er str#te%= is characteri ed 'y the search for market sta'ility and producing only a limited product line directed at a narrow segment of the total potential market.

* A!#$=&er str#te%= is one of analysis and imitation.* Re#ct"r str#te%= is the lack of a coherent strategic plan or apparent means of competing.

)ccording to ,orter$ what are the two types of competitive advantage?* Competitive advantage can come from either having the lowest costs in the industry or from

possessing significant and desira'le differences from competitors. "escri#e each of ,orter's generic competitive strategies%

* C"st $e#'ershi) str#te%= is one in which an organi ation strives to have the lowest costs in itsindustry and produces products or services for a 'road customer 'ase.

* Differe!ti#ti"! str#te%= is a strategy in which the organi ation competes on the 'asis of providing uniIue ?different@ products-services with features that customers value! perceive asdifferent and are willing to pay a premium price for.

* $ C"st F"c ser competes 'y having lower costs than the overall industry cost leader in specificand narrow niches.

* The Differe!ti#ti"! F"c ser can use whatever forms of differentiation the 'road differentiatormight useDproduct features! product innovations! product Iuality! customer responsiveness! or



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whatever. The only difference is that the focuser is speciali ing in one or a few segments insteadof all market segments.

What does it mean to #e 2stuck in the middle?3* St c: i! the +i''$e happens when an organi ation isn(t successfully pursuing either a low cost

or a differentiation competitive advantage. $n organi ation 'ecomes stuck in the middle when itscosts are too high to compete with the low-cost leader or when its products and services aren(tdifferentiated enough to compete with the differentiator.

What is the integrated low1cost differentiation strategy and how does it contradict the concept #ehind ,orter's generic competitive strategies?* $n i!te%r#te' $"*9c"st 'iffere!ti#ti"! str#te%= is one in which an organi ation develops a

competitive advantage 'y simultaneously achieving low costs and high levels of differentiation.* orter(s original work maintained that an organi ation couldn(t simultaneously pursue a low-cost

and a differentiation advantage. =espite strong empirical support for orter(s strategy framework!several strategy researchers Iuestioned this mutual e%clusivity. 7nstead of having to pursue oneor the other! strategy research evidence is starting to show that organi ations can pursue anintegrated low-cost differentiation strategy and do so successfully.

"escri#e each of the competitive strategies in (intz#erg's generic strategy typology%* "ifferentiation #y price is a modification of orter(s cost leadership strategy.* "ifferentiation #y marketing image descri'ed a competitive strategy in which an organi ation

attempted to create a certain image in customers( minds.* "ifferentiation #y product design can 'e used to descri'e organi ations that competed on the 'asis

of providing desira'le product features and design configurations.* "ifferentiation #y 4uality descri'ed a strategy in which organi ations competed 'y delivering

higher relia'ility and performance at a compara'le price.* "ifferentiation #y product support emphasi ed the customer support services provided 'y the

organi ation.* Undifferentiated strategy descri'ed situations in which an organi ation had no 'asis for

differentiation or when it deli'erately followed a copycat strategy.

LEARNING OUTCOME 5./DISCUSS HO4 COMPETITIVE STRATEGIES ARE IMPLEMENTED AND EVALUATED

The Gre= 2"!e The C$#ss "f -@15Have students 'rainstorm a list of companies who have targeted them simply 'ecause they are incollege. +hat do these companies have in common, +hat approaches do they use to gain thestudents as customers, =oes it work, +hat turns them off,

$. /mplementing Competitive Strateg7mplementation utili es resources! distinctive capa'ilities and core competencies. 7f a strategy isnot implemented! then it(s nothing more than an idea. Functional strategies play a significantrole in implementing competitive strategy.3. he 5ole of 6unctional Strategies

a@ Functional strategies)?3@ lay a critical role in the implementation of its competitive strategy.

(a) The challenge in implementing the organi ation(s competitive strategy is tocreate and e%ploit a sustaina'le competitive advantage.

(b) This competitive advantage comes from the organi ation(s a'ility to use itsresources to develop capa'ilities that may 'ecome distinctive.

(c) $ll of these details happen through the actual strategies that are 'eing used inthe various functional work units of the organi ation.

?1@ Have a dual role that influence 'oth)

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(a) What competitive strategy is most appropriate,(1) =epends on what organi ational resources and capa'ilities currently

availa'le or 'eing acIuired and developed through the functional strategies.(2) To successfully attain a sustaina'le competitive advantage! each of orter(s

generic competitive strategies reIuires certain skills! resources andorgani ational reIuirements. ?Ta'le 5.B@

(b) How is that strategy implemented,(1) The strategy?ies@ 'eing used in each functional area should support

whatever competitive advantage ?and competitive strategy@ is 'eing pursued.(a) 7f competition is 'ased on having the lowest costs! then)

(1) Functional strategies 'eing used should support and reinforce thatstrategy.

(2) Cost efficiencies would 'e pursued in all operational areas! 'ut particularly in production-operations.

(3) Financial strategies could support the Iuest for operationalefficiency including such things as capital investment in technologyif it(s needed and could contri'ute to lowering costs.

(4) $ll organi ational resources! distinctive capa'ilities and corecompetencies would 'e directed at attaining the goal of having theindustry(s lowest costs.

(b) 7f the organi ation chose to compete on the 'asis of 'oth low costs anddifferentiation! then its functional strategies 'etter reflect that choice or it will never 'e a'le to develop a sustaina'le competitive advantage.

Acti,e Le#r!i!% Hi!t* =efine fast follower ?copycat@ and give an e%ample to the class. Have students de'ate which skills!

resources and reIuirements 'est fit a company pursuing a fast follower strategy.

To do this have students address the following Iuestions)R =o copycats need strong marketing a'ilities, +hy,R =o copycats need good engineering skills, Should those skills 'e for new product development or

for process cost engineering,R +ould you focus more on control or innovation in your production process, 6%plain.

Str#te%ic M#!#%e+e!t Acti"! Si!%#)"re Air$i!es 6SIA7This side'ar illustrates competitive action in the air travel industry. $ key Iuestion is whether there will

'e any 'rand loyalty to specific airlines. +hat makes customers loyal to a particular airline, 7s it thedetails or is it simply a price decision, Could famous people play a role as cele'rity endorsers,

1. !ompetitive )ctions9nce an organi ation(s competitive strategy is implemented through functional decisions andactions! it will use certain postures! actions and tactics as it competes against other organi ationsfor customers! market share! or other desired o'Aects or outcomes.

a@ Offe!si,e +",es are when an organi ation attempts to e%ploit and strengthen itscompetitive position through attacks on a competitor(s position.?3@ Frontal assault is when the attacking firm goes head-to-head with its competitor 'y

matching it in every possi'le category! such as price! promotion! product featuresand distri'ution channel.

?1@ $ttack competitors( weaknesses wherever those weaknesses are.

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(a) Concentrate on geographic areas where the competitor is weak.(b) Serve customer segments that a competitor is ignoring or the competitor(s

offerings are weak.(c) 7ntroduce new product models or features to fill gaps its competitors aren(t

serving.?4@ $ll-out attack on competitors 'y hitting them from 'oth the product and the market

segment side.?B@ $void direct! head-on competitive challenges 'y maneuvering around competitors

and su'tly changing the rules of the game.(a) Create new market segments that competitors aren(t serving 'y introducing

products with different features.(b) This action cuts the market out from under the competitor.

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1. Changing organi ation(s competitive strategy when the evaluation shows the strategy isn(thaving the intended impact or hasn(t resulted in desired levels of performance.a@ Change in the organi ation(s fundamental competitive strategy isn(t something that

organi ations want to do freIuently or continually.?3@ 6ach competitive strategy entails the development of specific resources! capa'ilities

and distinctive competencies. Changing the competitive strategy means modifyingor redeveloping the organi ation(s resources and capa'ilities which is difficult ande%pensive.

?1@ This doesn(t! and shouldn(t! mean that an organi ation would never change its 'asiccompetitive approach. +hat it does mean is that this type of maAor strategic changeshould 'e approached realistically and intelligently.

'@ $lthough changing the organi ation(s 'asic competitive strategy isn(t highly likely!modifying the organi ation(s competitive actions is.

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Le#r!i!% Re,ie* Le#r!i!% O tc"+e 5./ Why is strategy implementation critical?

* 7f a strategy is not implemented! then it(s nothing more than a strategic idea or plan. "escri#e the role7s8 that functional strategies play in implementing the organization's competitive

strategy%* 7n implementation! functional strategies play a dual role of what and how. What competitive

strategy is most appropriate and how that strategy is implemented. "escri#e the offensive and defensive competitive actions an organization might use%

* Offe!si,e +",es are when an organi ation attempts to e%ploit and strengthen its competitive position through attacks on a competitor(s position.

* $ frontal assault is when the attacking firm goes head-to-head with its competitor and matches thecompetitor in every possi'le category such as price! promotion! product features! and distri'utionchannel. $nother offensive tactic is to attack competitors( weaknesses. $nother offensive tactic isto use an all-out attack on competitors 'y hitting them from 'oth the product and the marketsegment side. $nother type of offensive move is to avoid direct! head-on competitive challenges

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'y maneuvering around competitors and su'tly changing the rules of the game. Finally! another possi'le offensive tactic is to use guerilla attacks.

* Defe!si,e +",es descri'e when an organi ation is attempting to protect its competitive advantageand turf.

* 9ne defensive move is to prevent challengers from attacking 'y not giving them any areas toattack. $nother possi'le defensive move is to increase competitors( 'eliefs that significantretaliation can 'e e%pected if competitive attacks are initiated. The final type of defensive moveinvolves lowering the incentive for a competitor to attack.

How should an organization's competitive strategy #e evaluated?* The responsi'ility of managing strategically doesn(t stop once the competitive strategy is

implemented. Strategies must 'e monitored! assessed! and evaluated for performanceeffectiveness and efficiency.

* >ost organi ations( competitive strategies are targeted at increasing sales revenues! market share!or profita'ility! so data on these particular performance areas would 'e reIuired to determine whatimpact the competitive strategies are having.

THE OTTOM LINE

Le#r!i!% O tc"+e 5.1 Describe the f !cti"!#$ str#te%ies #! "r%#!iti"! !ee's #!'e()$#i! h"* th"se str#te%ies #re i+)$e+e!te' #!' e,#$ #te'.

6unctional strategies: short-term! goal-directed decisions and actions of theorgani ation(s various functional areas.

$ll organi ations must acIuire and transform resources ?inputs@ into outputs ?products@!which are then made availa'le to the organi ation(s customers or clients.

9rgani ations have three functional concerns) the product! the people! and the support processes.

The roduct) product functional strategies include product design! production operations! and marketing.

roduct design and development strategies are part of the ;J= functional area.Strategic choices include timing ? first mover: organi ation that(s first to 'ring a new product or innovation to the marketplace@ who will do design and development?separate ;J= department! cross1functional team: a group of individuals from variousdepartments who work together on product or process development! or somecom'ination@ and how design and development process will take place ?formal orinformal process! type of and how much research! and e%tensive or limited use ofvarious ;J= tasks@.

,roduction1operations: process of creating and providing goods and services. Strategicchoices include how and where products will 'e produced. These choices encompassthe design and management of the production-operations process.

(arketing: process of assessing and meeting the wants and needs of individuals orgroups 'y creating! offering! and e%changing products of value. >arketing strategies aredirected at managing the two Cs) customers and competitors. Strategic choices involvesegmentation or target market! differentiation! positioning! marketing mi%! connectingwith customers! gaining marketing insights! 'uilding strong 'rands! designing effectivemarketing communications and managing the marketing functional area.

The eople) people ?H;@ functional strategies reflect an organi ation(s commitment toand its treatment of its employees. H; strategies can 'e a significant source ofcompetitive advantage and can have a positive impact on performance ? high1



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performance work practices: H; practices that lead to 'oth high individual and highorgani ational performance@. Strategic choices involve getting people into theorgani ation! making sure they have the necessary knowledge and skills to do their Ao'sand helping them do those Ao's 'etter! assessing how well they do those Ao's andmaking needed corrections! and motivating high levels of effort and compensating themfairly. >ay also address other H; issues such as employee relations! diversity efforts!etc.

The Support rocesses) support processes support the organi ation as it does its work.The two main ones include information systems and financial-accounting systems.

&nformation system: a system for collecting! processing! storing and disseminatinginformation that managers need to operate a 'usiness. Strategic choices involve thechoice of system technology and the choice of types of information systems desired.

Financial accounting systems provide strategic decision makers with information a'outthe organi ation(s financial accounts and financial position. Strategic choices includecollecting and using financial accounting data! evaluating financial performance! doingfinancial forecasting and 'udgeting! determining the optimum financing mi% andeffectively and efficiently managing the financial-accounting area.

Le#r!i!% O tc"+e 5.- E()$#i! *h#t c"+)etiti,e #',#!t#%e is #!' *h#t it i+)$ies. !ompetitive advantage: what sets an organi ation apart! which can come from

distinctive capa'ilities or uniIue resources. 7t implies there are other competitors. !ompetition: when organi ations 'attle or vie for some desired o'Aect or outcome. The

types of competition an organi ation might face can 'e understood 'y looking at whocompetitors are.

Three approaches to defining an organi ation(s competitors include) ?3@ industry perspective! which identifies competitors as organi ations that are making and sellingthe same or highly similar goods or services ?1@ market perspective! which sayscompetitors are organi ations that satisfy the same customer need and ?4@ strategicgroups concept! which is 'ased on the idea there are groups of firms competing withinan industry that have similar strategies! resources and customers.

9rgani ations develop strategies that e%ploit resources and capa'ilities to get acompetitive advantage! thus setting the stage for competition.

!ompetitive strategy: strategy for how an organi ation or 'usiness unit is going tocompete.

Le#r!i!% O tc"+e 5. Describe the 'iffere!t c"+)etiti,e str#te%ies. The traditional approaches to defining competitive strategies are >iles and Snow(s

adaptive strategies and orter(s generic competitive strategies. >iles and Snow(s four adaptive strategies include) ?3@ prospector: a strategy in which

an organi ation continually innovates 'y finding and e%ploiting new product and marketopportunities! ?1@ defender: a strategy used 'y an organi ation to protect its current

market share 'y emphasi ing e%isting products and producing a limited product line! ?4@analyzer: a strategy of analysis and imitation! and ?B@ reactor: a strategy characteri ed

'y the lack of a coherent strategic plan or apparent means of competing. orter(s generic competitive strategies are 'ased on competitive advantage ?either low

costs or uniIue and desira'le differences@ and product market scope ?'road or [email protected] identifies three strategies) ?3@ cost leadership: a strategy in which an organi ationstrives to have the lowest costs in its industry and produces products for a 'roadcustomer 'ase ?1@ differentiation: a strategy in which an organi ation competes 'y

providing uniIue ?different@ products in the 'road market that customers value! perceive



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as different! and are willing to pay a premium price for the differentiator works hard toesta'lish #rand loyalty: customers consistently and repeatedly seek out! purchase! anduse a particular 'rand ?4@ focus: a strategy where an organi ation pursues either a costor differentiation advantage in a limited customer segment.

orter also identifies a strategy of stuck in the middle$ which happens when anorgani ation can(t develop a low cost or a differentiation advantage.

There are two contemporary views on competitive strategy. The first is the integrated

low cost9differentiation strategy$ which involves simultaneously achieving low costsand high differentiation. Some organi ations have 'een a'le to do this 'ecause oftechnology.

The second contemporary view is >int 'erg(s generic competitive strategies. He proposes that an organi ation(s strategy is either differentiation or 'eingundifferentiated. 7f it chooses differentiation! it does so 'y price! marketing image!

product design! product Iuality! or product support.Le#r!i!% O tc"+e 5./ Disc ss h"* c"+)etiti,e str#te%ies #re i+)$e+e!te' #!'e,#$ #te'.

Competitive strategies are implemented through the functional strategies that is! theresources and distinctive capa'ilities found in the functional areas influence whichcompetitive strategy is most feasi'le. 7n addition! the functional strategies support theorgani ation(s competitive advantage and strategy.

Competitive strategies are also implemented through competitive actions! whichinclude) ?3@offensive moves: an organi ation(s attempts to e%ploit and strengthen itscompetitive position through attacks on a competitor(s position! and ?1@ defensivemoves: an organi ation(s attempts to protect its competitive advantage and turf.

Competitive strategies are evaluated 'y the performance results o'tained. +hatcompetitive weaknesses and strengths does the organi ation have,

Changing the competitive strategy isn(t something that organi ations do freIuently 'ecause it(s 'ased on specific resources! distinctive capa'ilities and core competencies

developed in the functional areas. Changing would mean modifying or redevelopingthose. +hat is likely to 'e changed are the organi ation(s competitive actions.



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S %%esti"!s f"r si!% ;OU #s Str#te%ic Decisi"! M#:er i$'i!% ;" r S:i$$s e(ercises

1. This is a good opportunity to discuss the Uvalue chainU concept. Have your students conduct an7nternet search for value chain related articles. 9ne site of particular note is &ndustry Week s +e'site ?www.iwvaluechain.com@. Have the students review various articles availa'le for download orreview. Le#r!i!% O tc"+e 5.1 Describe the f !cti"!#$ str#te%ies #! "r%#!iti"! !ee's #!'e()$#i! h"* th"se str#te%ies #re i+)$e+e!te' #!' e,#$ #te'B C" rse Le,e$ Ob>ecti,esI'e!tif= #!' 'escribe c"++"! t=)es "f f !cti"!#$ str#te%iesB AACS Ref$ecti,e thi!:i!%

s:i$$s-. There are many good articles availa'le a'out Qack +elch from 6ortune$ ime$ *usiness Week$ etc.

Have your students research this leader and his decisions over the last few years with ecti,es Disc ss best )r#ctices f"r str#te%=i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

5. $s an alternative! this e%ercise could 'e divided among groups in the class. $sk each group toresearch a different type of sponsorship! provide several e%amples and evaluate the strategy. Havethe groups report 'ack to the class. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e #!'*h#t it i+)$iesB AACS Ref$ecti,e thi!:i!% s:i$$s

. "ou may wish to have students record their perfect Ao' description prior to assigning this e%ercise.$sk the students to do research on companies they would like to work for and then compare whatthey find in their research with their e%pectations. #uality of work life has 'een the focus of manyresearch activities over the last couple of decades. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e#',#!t#%e #!' *h#t it i+)$iesB AACS C"++ !ic#ti"! s:i$$s3 Ref$ecti,e thi!:i!% s:i$$s

. "ou may wish to 'egin 'y esta'lishing a few of the e%pectations organi ations have for newinformation technology systems. $sk the class mem'ers to consider who will 'e using the systemand how the information will 'e used. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e#!' *h#t it i+)$iesB AACS Ref$ecti,e thi!:i!% s:i$$s

. This a good e%ercise to illustrate the multifunctional dimensions of strategic planning. $sk thestudents in groups to prepare a one-page talking points! 'ulleted list of its key points fordistri'ution and presentation to the entire class. Le#r!i!% O tc"+e 5.1 Describe the f !cti"!#$str#te%ies #! "r%#!iti"! !ee's #!' e()$#i! h"* th"se str#te%ies #re i+)$e+e!te' #!'e,#$ #te'B C" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!BAACS Ref$ecti,e thi!:i!% s:i$$s



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. "ou might discuss the criteria 6ortune uses to select the top 322 and to compare the list year-to-year. Can the strategies employed work at all types of organi ations, +hy or why not, This e%ercisecould 'e an individual! 'ut might 'e more effective as a small group proAect. Le#r!i!% O tc"+e5.1 Describe the f !cti"!#$ str#te%ies #! "r%#!iti"! !ee's #!' e()$#i! h"* th"se str#te%ies#re i+)$e+e!te' #!' e,#$ #te'B C" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%=i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

1@. This is a good e%tension of a discussion on sources of competitive advantage. "ou may wish to

include copyright protection and international issues in the classroom discussion. Le#r!i!%O tc"+e 5./ Disc ss h"* c"+)etiti,e str#te%ies #re i+)$e+e!te' #!' e,#$ #te'B C" rseLe,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Use "fi!f"r+#ti"! tech!"$"%=3 Ref$ecti,e thi!:i!% s:i$$s

11. The )rt of War can 'e a very interesting e%ercise. 7nevita'le comparisons will arise with 8nitedStates military-related actions such as 7raI!


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. Coordination among the strategies at Toyota is especially important as most contri'ute to the production process. $sk students) +hat would happen if Toyota launched marketing campaigns praising the highly innovative and sporty styling of a Camry ?a fairly conservative model@, Howwould consumers react to that message which seems inconsistent with the car(s styling, Le#r!i!%O tc"+e 5./ Describe h"* c"+)etiti,e str#te%ies #re i+)$e+e!te' #!' e,#$ #te'B C" rseLe,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,ethi!:i!% s:i$$s

/. "ou might have students compare the advertising and descriptions of Toyota(s mainstream vehicleswith the approach they are using to reach a more trendy and youthful market with the Scion car line.Scion is a 'ig departure for Toyota from its traditional focus 'ut still 'uilds on its key strengths ofcost control and engineering 'y introducing 'oldly styled cars with Iuality construction 'ut at a low

price. $sk students why Toyota introduced this new line, ?Could it 'e to get first time 'uyers intothe Toyota family hoping for their continued loyalty in future car purchases as they move 'eyondthese low priced cars, Le#r!i!% O tc"+e 5.1 Describe the f !cti"!#$ str#te%ies #!"r%#!iti"! !ee's #!' e()$#i! h"* th"se str#te%ies #re i+)$e+e!te' #!' e,#$ #te'B C" rseLe,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Use "fi!f"r+#ti"! tech!"$"%=3 Ref$ecti,e thi!:i!% s:i$$s

C#se - The= ,e G"t G#+e

1. (iles and Snow: $ prospector is consistently developing new products and innovative advertisingand endorsements.

,orter's framework: Eroad scope with differentiation 'etween segments 'ut the same overallapproach of designing innovative look and using 'ig stars to promote. Le#r!i!% O tc"+e 5.-E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss best)r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

-. ike(s competitive advantages that have contri'uted to its competitive advantage are) high 'randimage innovative designs memora'le ads and endorsers and lots of store shelf space. ike(sa'ility to advertise in uniIue ways complements innovative product design. Le#r!i!% O tc"+e5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ssbest )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

. "es! ike(s functional strategies support its competitive strategy 'y the following) keeping its costsdown 'ut prices up to make room for e%pensive endorsements efficient ad campaigns in that theycan travel well across 'orders and still have meaning and stars have good recognition a'road alsoand 'y staying innovative and having clever ads ike continues to draw large num'ers of enthusiastic 'uyers willing to pay higher prices for perceived value added. Le#r!i!% O tc"+e5. Describe the 'iffere!t c"+)etiti,e str#te%iesB C" rse Le,e$ Ob>ecti,es Disc ss best)r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

/. To maintain its strong competitive position! ike is going to have to stay innovative need to 'e perceived as the 'est product with serious sports enthusiasts not Aust the 'est marketers continue tohire up-and-coming stars and avoid any scandals so as to limit its competitors( a'ility to make anyinroads into ike(s markets. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#tit i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!BAACS Ref$ecti,e thi!:i!% s:i$$s



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C#se Re*i!' #!' Re)$#=

3. (iles and Snow: 9riginally! etfli% was pro'a'ly a rospector as it sought innovation. However!recent decisions have put the company in the ;eactor category. Some students could make a casethat the firm is a =efender now that new competitors have entered the market.

,orter's framework: Students may identify one or more of orter(s strategies. However! 'asedupon the information presented in the case! one might argue that a differentiation strategy is taking

place as etfli% attempts to demonstrate to consumers its uniIueness compared to others. $lthough!a case could also 'e made that etfli% is now stuck in the middle as it is neither different nor lowcost. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesB C" rseLe,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,ethi!:i!% s:i$$s

-. Students might identify any num'er of competitive advantages for etfli%. They should 'e a'le toe%plain how the firm(s resources! capa'ilities! and or core competencies contri'uted to thiscompetitive advantage! using material from the chapter. Le#r!i!% O tc"+e 5.- E()$#i!c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss best )r#cticesf"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

. Students may focus on all three functional concerns ?product! people! and support processes@. For product! 'e sure that they look at etfli%(s design especially how product is delivered to theconsumer. $lso! the production operations as well as marketing should 'e mentioned. For peoplestrategies! well-trained customer service will 'e important when customers have a pro'lem. Finally!for support processes! the information systems and financial-accounting systems must 'e modernand sound. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesBC" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACSRef$ecti,e thi!:i!% s:i$$s

/. This is an opinion Iuestion! 'ut students might focus on price ?'eing the low cost provider@ or onservice ?offering more selection in a faster format@. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e#',#!t#%e #!' *h#t it i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r str#te%=i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

C#se / C#sti!% # 4i'er Net

1. Students may focus on the fact that there are literally thousands of widely different products in asingle location providing something for every type of 'uyer. Shopping at these huge stores

'ecomes an e%perience with lots of participatory demonstrations of products. ;estaurants and otherfeatures make the shop a destinationPmore fun than the average mall or 'ig 'o% store visit. Eass

ro Shops are a chain of locations that seek to duplicate the success of the original store. Le#r!i!%O tc"+e 5.1 Describe the f !cti"!#$ str#te%ies #! "r%#!iti"! !ee's #!' e()$#i! h"* th"sestr#te%ies #re i+)$e+e!te' #!' e,#$ #te'B C" rse Le,e$ Ob>ecti,es Disc ss best )r#ctices f"r

str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

-. Some challenges in replicating this strategy for Eass ro are) The need to standardi e what is soldand how it is promoted ?efficiency argument for glo'al or uniform production function@ and how toincorporate local needs and interests that differ regionally. For e%ample! Eass ro in >innesotamight showcase camping and lake fishing! minimi ing scu'a or surf fishing eIuipment ?not as muchneed for that in > @.

$nother issue for Eass ro is to ensure its sales associates are knowledgea'le of their products. 7tmay 'e a pro'lem to hire skilled 'ass fishing e%perts in evada or ew >e%ico where fishing is not

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as common a sport as in >issouri. 7n addition! as the chain of shops e%pands! Eass ro will run upagainst competitors who are entrenched in the local market and may 'e a'le to successfully defendtheir markets making investment in new mega-stores less profita'le. Le#r!i!% O tc"+e 5.-E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t it i+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss best)r#ctices f"r str#te%= i+)$e+e!t#ti"!B AACS Ref$ecti,e thi!:i!% s:i$$s

. Misit the +e' site. Le#r!i!% O tc"+e 5.- E()$#i! c"+)etiti,e #',#!t#%e #!' *h#t iti+)$iesB C" rse Le,e$ Ob>ecti,es Disc ss the f !cti"!s "f ,isi"! st#te+e!ts3 +issi"!st#te+e!ts3 #!' $"!%9ter+ c"r)"r#te "b>ecti,esB AACS Use "f i!f"r+#ti"! tech!"$"%=3Ref$ecti,e thi!:i!% s:i$$s

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