3. Define the terms--stars in a BCG Matrix, and give strategic suggestions for divisions which
are called stars.
The characteristics of stars are high relative market share and high market growth rate, and these divisions are best long-run opportunities for growth & profitability. Suggestions: substantial investment to maintain or strengthen dominant position For these divisions, a firm should employ Integration strategies, intensive strategies, joint ventures strategy.
BCG矩阵中明星类业务的特点是相对市场占有率高并处在一个快速发展的市场中，这类业务对企业长期发展及盈利是很好的机会。对待明星类业务，企业应该持续投资以保持或加强其主导地位。具体可以采取一体化战略，加强战略以及合资战略。
4. Define the terms--stars in a BCG Matrix, and give strategic suggestions for divisions which are called stars.Cash Cows
High relative market share, competes in low-growth industry; Generate cash in excess of their needs; Milked for other purposes
Maintain strong position as long as possible; Product development, concentric diversification; If weakens—retrenchment or divestiture
特点：该业务具有高相对市场占有率，处于一个低增长的行业内；生产的现金高于其所需要投入的，可以用以支持其他业务
策略：尽量保持其强势地位，具体可采取产品开发、同心多元化战略； 如其进入弱势状态则采取收缩或剥离战略
5. Discuss four common problems that cause joint ventures to fail.
One problem that causes joint ventures to fail is that managers who should
collaborate daily in operating the venture are not involved in forming or shaping the venture. A second problem is if the venture benefits the partnering companies but may not benefit customers who then complain about poorer service or criticize the companies in other ways. A third problem occurs if the venture is not supported equally by both partners, which creates problems. A final problem that can cause a joint venture to fail is that the venture may begin to compete more with one of the partners than the other.
导致合资企业失败的原因有：在合资企业形成时没有涉及在日常工作中应相互协
调的管理者；合资时只考虑到对合作企业有利，却忽略了顾客利益；合资企业没有得到所有合作方的支持；合资企业对合作一方的竞争加剧
6. The way to pursue Differentiation successfully, and the conditions to make
differentiation effective?
creating products which are superior to competitors by virtue of design, technology, performance etc；
offering superior after sales service； superior distribution channels；
creating a strong brand name through design, innovation, advertising, and so on by product packaging.
There are many ways to differentiate and many buyers, who are price-insensitive perceive, the value of the differences;
Buyer needs and uses are diverse;
Few rival firms are following a similar differentiation approach;
Technology change is fast paced and competition revolves around evolving product features
成功实现差异化战略的途径包括：通过良好的设计、先进的技术和优良的性能为
顾客带来优异的产品；提供优异的售后服务；通过设计、创新和广告宣传创建强大的品牌；独特的包装
实现差异化战略的条件是有很多途径来进行差异化，以满足市场中对价格不敏感
儿看中差异化价值的顾客；顾客购买产品的需求和用途差异性大；行业中很少有企业采取同样的差异化方式；当技术发展步伐很快并且行业中的竞争主要围绕产品特性的提高上 Chapter 7-8
1. Identify the differences between strategic formulation and strategic implementation ? Formulation positions forces before the action ? Implementation manages forces during the action ? Formulation focuses on effectiveness ? Implementation focuses on efficiency
? Formulation primarily an intellectual process ? Implementation primarily an operational process ? Formulation requires good intuitive & analytical skills
? Implementation requires special motivational & leadership skills ? Formulation requires coordination among a few individuals ? Implementation requires coordination among many individuals 战略形成阶段的活动主要在于行动前部署力量，该阶段更加注重效力问题，更多体现出智力活动的过程，要求战略制定者具有良好的直觉和分析能力，需要在相对少数人的合作；战略执行活动主要是在行动中管理不同力量，该阶段注重效率问题是一个操作的过程，要求管理者具备激励和领导技能，因为这个过程需要企业更多的成员间相互配合。
Key Terms
1. Strategic Management – Defined by F.R. David
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives 2. Mission statement
Enduring statement of purpose that distinguishes one organization from other similar enterprises 3. KFS
The key factors for success are those resources, skills and attributes of firms in the industry that are essential to deliver profitability 4. Clusters
Critical masses in one place of linked industries and institutions--from suppliers to
universities to government agencies--that enjoy unusual competitive success in a particular field.
5. Core competencies
Core competencies are the collective learning of the organization, especially how to co-ordinate diverse production skills and integrate multiple streams of technologies.
6.Joint venture is a strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage 7. Strategic Alliance is a formal relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations
8.Cost leadership: being the lowest cost producer of a product or service to earn above average profits 9.Differentiation
Creating a customer perception that a product or service is superior so that a premium price can be charged
10. Relative Market Share
Ratio of a division’s own market share in an industry to the market share held by the largest rival firm in that industry 11.Reengineering
Reconfiguring or redesigning work, jobs, & processes to improve cost, quality, service, & speed. 12. Restructuring (downsizing)
Reducing the size of the firm –number of employees, divisions, and/or units, number of hierarchical levels to improve both efficiency and effectiveness