Solution to Questions Harvard Case Solution & Analysis

1. What is the difference between Strategy and Operational Effectiveness?



Strategy is a tool used in situations when the occurrence rate of different possibilities is high. Strategy means to establish a unique idea supported by a valuable position considering a different options of activities. Strategy should be well thought and worked upon. An organization’s strategy differentiates its approach from other rivals. If strategy isn’t new or same as the rivals, the element of uniqueness would be eliminated.


It is a practice which allows the organization to maximize the use of their resources by increasing the productivity and the growth of the company in order to efficiently compete with the competitors. Operational effectiveness is divided into four components, leading, controlling, functional performance and improving the performance. If followed efficiently they could result in continuously improve the performance of the company.

2. What is the difference between Competitive Strategy and Sustainable Competitive Advantage?



Competitive strategy is about being different. In other words the process of differentiating your company from the competitors or “THINKING OUTSIDE THE BOX.” The concepts should be innovative and add value to the strategy of the company. The intentional usage of unique ideas by different organizations with different activities. The selection of activities which are not similar to the rivals of the same industry is called competitive strategy.


Sustainable competitive advantage is an advantage which a company has due to its abundant resources or efficient infra-structure. The edge that organizations have over other competitor organization is due to the difference in the volumes of resources, experienced employees, efficient hierarchic system or even the machinery a company has or the location of the company. The competitive edge acquired due to these reasons is known as the sustainable competitive advantage.

3. What are the types of Strategic Fit?


Strategic Fit consists of four types which are as follows;

  1. Technology Fits
  2. Operating Fits
  3. Distribution and Customer Related Fits
  4. Managerial Fits

4. What is the role of leadership in strategy formulation and sustenance?


A leader is an individual who not only guides the team member but acts as a support center for them as well. A leader encourages his fellow members to perform up to their potential and beat the record of their recent performance. The leader is the one who is responsible for the planning and the strategic development of the organization.

A leader cultivates the strategy or articulates it by ground-breaking and active ideas and directs them towards the development and progress of the company. The leader tailors the strategies for the growth of the company in the long run. The designs put in for the organization rapid growth should sustain to develop an effective strategy.


1. Why is it important to analyze an industry?


Running a company is not a walk in the park. Sustaining the operations of the company involve commitment and determined employees supported by adequate resources. The company has to evaluate the operations and the functions for rapid growth and higher productivity. A company has to efficiently evaluate its operational activities to achieve its objectives.

Analyzing an industry is important for the sake of not only growing but surviving in the industry. If a company is unable to analyze the affairs and the market situation of the industry, it will be under great threat, might even end up losing its ownership over the company. Only through analysis of the industry, the company would know the available opportunities in the market and the potential threats that could harm the business and operations of the company.Solution to Questions Case Solution

2. What does it mean for an industry to be structurally attractive? Can you comment on the structural attractiveness of the banking industry?


When a company enters the market or begins its operations, it creates a structure of authority and structure of operation through which the individual in the company realize their role in the company. The structures are not guaranteed to produce the same results for all the companies in the same industry, a structure might be producing growth for a specific company and might not be helping the other company in thriving towards growth........................

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