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1. Using the Cockcroft-Gault equation, calculate creatinine
clearance for the
following patient: 70 year old female, 5’6” tall, 150 lb, SCr =
1.2 mg/dL.
Round your answer to the nearest 1 mL/min.
2. A 1-year-old male weighing 28 lbs is diagnosed with acute
otitis media and
will be treated with amoxicillin/clavulanate (Augmentin®). The
recommended dosing is 90 mg/kg/day, divided every 12 hours.
How many
mL of 600 mg/5 mL would be given with each dose? Round
your answer to
the nearest 0.5 mL.
3. A 7-year-old female weighing 55 lbs presents with a severe
asthma
exacerbation and will be treated with prednisolone (Orapred®).
Recommended dosing is 1 mg/kg/day in 2 divided doses. How
many
milligrams would be prescribed per dose? Round your answer to
the nearest
mg.
4. A 10-year-old female weighing 80 lbs presents with a urinary
tract infection
and will be treated with sulfamethoxazole/trimethoprim
(Bactrim®). Dosing
for this medication is typically based on the trimethoprim
component.
Suspension is available as 200 mg of sulfamethoxazole and 40
mg of
trimethoprim in every 5 mL. Dosing for this indication is
trimethoprim 8
mg/kg/day divided every 12 hours. How many milliliters of
sulfamethoxazole would be given with each dose? Round your
answer to the
nearest 0.5 mL.
5. A 6-year-old male weighing 50 lbs presents complaining of a
sore throat and
has a positive rapid strep test. He will be treated with
amoxicillin (Amoxil®)
with dosing of 50 mg/kg/day. How many milligrams/day would
be
prescribed? Round your answer to the nearest 5 mg.
6. From question #5 - how many mL would this be (using 400
mg/5 mL
concentration)? Round your answer to the nearest 0.5 mL.
7. A 2 month old weighing 9 lbs presents with erosive
esophagitis. This will be
treated with ranitidine (Zantac®) 10 mg/kg/day in 2 divided
doses.
Ranitidine comes as a 15 mg/mL concentration. How many
milliliters would
be recommended for each dose? Round your answer to the
nearest 0.1 mL.
8. From question #7 – how many mL would be needed for a 30
day supply?
Round your answer to the nearest 5 mL but be sure to give
adequate supply.
9. A mother of a 4 year old weighing 30 lbs calls your office
asking for dosing
recommendations for ibuprofen (Motrin®) for a fever.
Recommended dosing
is 5-10 mg/kg every 6-8 hours as needed. Ibuprofen suspension
concentration is 100 mg/5 mL. What range, in milliliters, would
be
appropriate for this patient for each dose? Round your answer to
the nearest
0.5 mL.
10. From question #9 – the mother decides that she would rather
use
acetaminophen (Tylenol®). Dosing recommendation is 10-15
mg/kg/dose
and the suspension concentration is 160 mg/5 mL. What range,
in milliliters,
would be appropriate for this patient for each dose? Round your
answer to
the nearest 0.1 mL.
Strategic Management Concepts
Chapter 7
Business Unit Strategies
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
1
Chapter 7: Key Issues
Generic Strategies & Strategic Groups
Porter’s Generic Strategy Typology
Miles & Snow’s Generic Strategy Typology
Business Size & Strategy
Global Concerns
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
2
Introduction
Business Unit: An organizational entity with its own mission,
set of competitors, and industry.
Competitive Advantage: A state whereby a business’ successful
strategies cannot easily be duplicated by competitors.
Generic Strategies: A simple categorization of competitive
strategies available to businesses.
Strategic Group: Businesses employing the same generic
strategy.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
3
7-1 Porter’s Generic Strategies
Michael Porter’s typology originally included four options: low
cost with focus, low cost without focus, differentiation with
focus, and differentiation without focus.
Table 7-1 (reproduced on the next slide) summarizes the generic
strategies presented in the text based on Porter’s typology.
Porter’s strategies are in red; those proposed by others are in
blue.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
Porter’s Generic Strategy Typology
(Red strategies proposed by Porter, blue strategies added by
others)Emphasis on Entire Market or NicheEmphasis on Low
CostsEmphasis on DifferentiationEmphasis on Low Costs &
DifferentiationEmphasis on Various Factors Based on
MarketEntire MarketLow-Cost Strategy (proposed by
Porter)Differentiation Strategy (proposed by Porter)Low-Cost-
Differentiation Strategy (proposed by Porter)Multiple Strategies
(proposed by Porter)
NicheFocus-Low-Cost Strategy (proposed by Porter)Focus-
Differentiation Strategy (proposed by Porter)Focus-Low-
Cost/Differtiation Strategy (proposed by Porter)
Multiple Strategies (proposed by Porter)
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
5
7-1a Low-Cost (Cost Leadership) Strategy (without focus)
Produce basic, no-frills products and services for a mass market
of price-sensitive customers.
Often (but not always) build market share through low prices.
Low initial investment and low operating costs.
Often outsource to reduce costs.
Vulnerable to price competition.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
6
7-1b Focus–Low-Cost Strategy
Emphasizes low costs while serving a narrow segment of the
market, producing no-frills products or services for price-
sensitive customers in a market niche.
Compete only in a niche where cost advantages relative to large
competitors can be enjoyed.
Vulnerable to price competition.
Example: Aldi minimizes costs and offers low prices, targeting
low-income consumers.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
7
7-1c Differentiation Strategy (without focus)
Produce and market to the entire industry products or services
that are readily distinguished from those of their competitors.
Emphasize scientific breakthroughs, technology, and flexibility.
Differentiation can be based on the product’s physical
characteristics or other factors such as quality, marketing, or
service.
Examples include specialty clothing retailers.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
8
7-1d Focus-Differentiation Strategy
Produce and market highly differentiated products or services
for the specialized needs of a market niche.
Customers in a niche might be willing to pay higher prices for
specialized products or services.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
9
7-1e Low-Cost–Differentiation Strategy (without focus)
Emphasize both low costs and differentiation.
Combination Strategy Debate: According to Porter, low cost
and differentiation are not compatible in the long run, as efforts
to differentiate generally increase a business’ relative cost
position. Others argue that the two may be compatible,
although combining strategies is usually more difficult to
accomplish.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
10
5 Ways a Business Can Pursue a Low-Cost–Differentiation
Strategy
#1: Commitment to Quality
Commitment to quality not only improves outputs but also
reduces costs involved in scrap, warranty, and service after the
sale.
Building quality into a product can reduce the costs of rework,
scrap, and servicing the product after the sale; the business
benefits from increased customer satisfaction and repeat sales,
which can improve economies of scale.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
11
5 Ways a Business Can Pursue a Low-Cost–Differentiation
Strategy, 2
#2: Differentiation on the Basis of Low Costs
Many firms that achieve low-cost positions also lower their
prices because many of their competitors may not be able to
afford to match their price level.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
12
5 Ways a Business Can Pursue a Low-Cost–Differentiation
Strategy, 3
#3: Process innovations
Process innovations increase the efficiency of operations and
distribution.
Although these improvements are normally thought of as
lowering costs, they can also enhance product or service
differentiation.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
13
5 Ways a Business Can Pursue a Low-Cost–Differentiation
Strategy, 4
#4: Product Innovations
Product innovations are typically presumed to enhance
differentiation but can also lower costs.
Example: Adding filters to cigarettes not only helped
differentiate one brand from another, but it also reduced
production costs.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
14
5 Ways a Business Can Pursue a Low-Cost–Differentiation
Strategy, 5
#5: Value innovations
Modify products, services, and activities in order to maximize
the value delivered to customers.
Differentiate products and services only when associated cost
hikes can be justified by increases in overall value and by
pursuing cost reductions that result in minimal, if any,
reductions in value.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
15
7-1f Focus–Low-Cost/Differentiation Strategy
Produce highly differentiated products or services for the
specialized needs of a select group of customers while keeping
costs low.
This strategy combines all of the facets of low costs,
differentiation, and focus.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
16
7-1g Multiple Strategies
Employ more than one strategy simultaneously, each tailored to
the needs of a distinct market or class of customers.
“Multiple strategies” is not synonymous with the “combination
strategy.” A common example in airlines offering both first-
class and coach seating.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
17
7-2 The Miles and Snow
Strategy Framework
Four business strategy options:
Prospectors seek first mover advantages by introducing new
products and services.
Defenders seek stability and only compete in a predictable
segment of the market.
Analyzers represent a middle ground between prospectors and
defenders and emphasize flexibility and second mover
advantages.
Reactors lack consistency and perform poorly.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
18
Case Analysis Step 10:
Business-Level Strategy
Apply both the Porter and Miles & Snow typologies.
Discuss the uniqueness of the strategy, including how it differs
from competitors that might employ the same generic strategy.
Provide details
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
19
7-3 Business Size and Strategy
Small businesses tend to enjoy the advantages of speed,
flexibility, and lower initial investment.
Large businesses tend to enjoy benefits associated with
economies of scale.
Mid-size businesses often (but not always) struggle in terms of
performance because they may lack either set of advantages.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
20
Case Analysis Step 11: Business-Level Strategies of
Competitors
Utilize at least one of the generic strategy typologies (i.e.,
Porter or Miles & Snow) to describe the strategies of
competitors.
Draw a picture to illustrate the clustering of businesses in an
industry along several generic strategy approaches.
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
21
7-4 Assessing Strategies
Although the distinctions between generic business strategies
are readily made in theory, they are not always easy to assign in
practice.
Formulating an effective competitive strategy is almost
impossible without a clear understanding of the primary
competitors and their strategies
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
7-5 Global Concerns
Common advice: “Think globally, but act locally.”
Key question: Should a business vary its strategy considerably
from one country to another, or should consistency be
emphasized?
Parnell, Strategic Management: Theory and Practice. SAGE
Publications, Inc. © 2013
23

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  • 1. 1. Using the Cockcroft-Gault equation, calculate creatinine clearance for the following patient: 70 year old female, 5’6” tall, 150 lb, SCr = 1.2 mg/dL. Round your answer to the nearest 1 mL/min. 2. A 1-year-old male weighing 28 lbs is diagnosed with acute otitis media and will be treated with amoxicillin/clavulanate (Augmentin®). The recommended dosing is 90 mg/kg/day, divided every 12 hours. How many mL of 600 mg/5 mL would be given with each dose? Round your answer to the nearest 0.5 mL. 3. A 7-year-old female weighing 55 lbs presents with a severe asthma exacerbation and will be treated with prednisolone (Orapred®). Recommended dosing is 1 mg/kg/day in 2 divided doses. How many milligrams would be prescribed per dose? Round your answer to the nearest mg. 4. A 10-year-old female weighing 80 lbs presents with a urinary tract infection and will be treated with sulfamethoxazole/trimethoprim (Bactrim®). Dosing for this medication is typically based on the trimethoprim
  • 2. component. Suspension is available as 200 mg of sulfamethoxazole and 40 mg of trimethoprim in every 5 mL. Dosing for this indication is trimethoprim 8 mg/kg/day divided every 12 hours. How many milliliters of sulfamethoxazole would be given with each dose? Round your answer to the nearest 0.5 mL. 5. A 6-year-old male weighing 50 lbs presents complaining of a sore throat and has a positive rapid strep test. He will be treated with amoxicillin (Amoxil®) with dosing of 50 mg/kg/day. How many milligrams/day would be prescribed? Round your answer to the nearest 5 mg. 6. From question #5 - how many mL would this be (using 400 mg/5 mL concentration)? Round your answer to the nearest 0.5 mL. 7. A 2 month old weighing 9 lbs presents with erosive esophagitis. This will be treated with ranitidine (Zantac®) 10 mg/kg/day in 2 divided doses. Ranitidine comes as a 15 mg/mL concentration. How many milliliters would be recommended for each dose? Round your answer to the nearest 0.1 mL.
  • 3. 8. From question #7 – how many mL would be needed for a 30 day supply? Round your answer to the nearest 5 mL but be sure to give adequate supply. 9. A mother of a 4 year old weighing 30 lbs calls your office asking for dosing recommendations for ibuprofen (Motrin®) for a fever. Recommended dosing is 5-10 mg/kg every 6-8 hours as needed. Ibuprofen suspension concentration is 100 mg/5 mL. What range, in milliliters, would be appropriate for this patient for each dose? Round your answer to the nearest 0.5 mL. 10. From question #9 – the mother decides that she would rather use acetaminophen (Tylenol®). Dosing recommendation is 10-15 mg/kg/dose and the suspension concentration is 160 mg/5 mL. What range, in milliliters, would be appropriate for this patient for each dose? Round your answer to the nearest 0.1 mL. Strategic Management Concepts
  • 4. Chapter 7 Business Unit Strategies Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 1 Chapter 7: Key Issues Generic Strategies & Strategic Groups Porter’s Generic Strategy Typology Miles & Snow’s Generic Strategy Typology Business Size & Strategy Global Concerns Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 2 Introduction Business Unit: An organizational entity with its own mission, set of competitors, and industry.
  • 5. Competitive Advantage: A state whereby a business’ successful strategies cannot easily be duplicated by competitors. Generic Strategies: A simple categorization of competitive strategies available to businesses. Strategic Group: Businesses employing the same generic strategy. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 3 7-1 Porter’s Generic Strategies Michael Porter’s typology originally included four options: low cost with focus, low cost without focus, differentiation with focus, and differentiation without focus. Table 7-1 (reproduced on the next slide) summarizes the generic strategies presented in the text based on Porter’s typology. Porter’s strategies are in red; those proposed by others are in blue. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 Porter’s Generic Strategy Typology (Red strategies proposed by Porter, blue strategies added by others)Emphasis on Entire Market or NicheEmphasis on Low CostsEmphasis on DifferentiationEmphasis on Low Costs & DifferentiationEmphasis on Various Factors Based on
  • 6. MarketEntire MarketLow-Cost Strategy (proposed by Porter)Differentiation Strategy (proposed by Porter)Low-Cost- Differentiation Strategy (proposed by Porter)Multiple Strategies (proposed by Porter) NicheFocus-Low-Cost Strategy (proposed by Porter)Focus- Differentiation Strategy (proposed by Porter)Focus-Low- Cost/Differtiation Strategy (proposed by Porter) Multiple Strategies (proposed by Porter) Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 5 7-1a Low-Cost (Cost Leadership) Strategy (without focus) Produce basic, no-frills products and services for a mass market of price-sensitive customers. Often (but not always) build market share through low prices. Low initial investment and low operating costs. Often outsource to reduce costs. Vulnerable to price competition. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 6
  • 7. 7-1b Focus–Low-Cost Strategy Emphasizes low costs while serving a narrow segment of the market, producing no-frills products or services for price- sensitive customers in a market niche. Compete only in a niche where cost advantages relative to large competitors can be enjoyed. Vulnerable to price competition. Example: Aldi minimizes costs and offers low prices, targeting low-income consumers. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 7 7-1c Differentiation Strategy (without focus) Produce and market to the entire industry products or services that are readily distinguished from those of their competitors. Emphasize scientific breakthroughs, technology, and flexibility. Differentiation can be based on the product’s physical characteristics or other factors such as quality, marketing, or service. Examples include specialty clothing retailers. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 8
  • 8. 7-1d Focus-Differentiation Strategy Produce and market highly differentiated products or services for the specialized needs of a market niche. Customers in a niche might be willing to pay higher prices for specialized products or services. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 9 7-1e Low-Cost–Differentiation Strategy (without focus) Emphasize both low costs and differentiation. Combination Strategy Debate: According to Porter, low cost and differentiation are not compatible in the long run, as efforts to differentiate generally increase a business’ relative cost position. Others argue that the two may be compatible, although combining strategies is usually more difficult to accomplish. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 10 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy
  • 9. #1: Commitment to Quality Commitment to quality not only improves outputs but also reduces costs involved in scrap, warranty, and service after the sale. Building quality into a product can reduce the costs of rework, scrap, and servicing the product after the sale; the business benefits from increased customer satisfaction and repeat sales, which can improve economies of scale. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 11 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy, 2 #2: Differentiation on the Basis of Low Costs Many firms that achieve low-cost positions also lower their prices because many of their competitors may not be able to afford to match their price level. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 12 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy, 3
  • 10. #3: Process innovations Process innovations increase the efficiency of operations and distribution. Although these improvements are normally thought of as lowering costs, they can also enhance product or service differentiation. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 13 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy, 4 #4: Product Innovations Product innovations are typically presumed to enhance differentiation but can also lower costs. Example: Adding filters to cigarettes not only helped differentiate one brand from another, but it also reduced production costs. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 14 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy, 5
  • 11. #5: Value innovations Modify products, services, and activities in order to maximize the value delivered to customers. Differentiate products and services only when associated cost hikes can be justified by increases in overall value and by pursuing cost reductions that result in minimal, if any, reductions in value. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 15 7-1f Focus–Low-Cost/Differentiation Strategy Produce highly differentiated products or services for the specialized needs of a select group of customers while keeping costs low. This strategy combines all of the facets of low costs, differentiation, and focus. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 16 7-1g Multiple Strategies Employ more than one strategy simultaneously, each tailored to the needs of a distinct market or class of customers.
  • 12. “Multiple strategies” is not synonymous with the “combination strategy.” A common example in airlines offering both first- class and coach seating. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 17 7-2 The Miles and Snow Strategy Framework Four business strategy options: Prospectors seek first mover advantages by introducing new products and services. Defenders seek stability and only compete in a predictable segment of the market. Analyzers represent a middle ground between prospectors and defenders and emphasize flexibility and second mover advantages. Reactors lack consistency and perform poorly. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 18 Case Analysis Step 10:
  • 13. Business-Level Strategy Apply both the Porter and Miles & Snow typologies. Discuss the uniqueness of the strategy, including how it differs from competitors that might employ the same generic strategy. Provide details Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 19 7-3 Business Size and Strategy Small businesses tend to enjoy the advantages of speed, flexibility, and lower initial investment. Large businesses tend to enjoy benefits associated with economies of scale. Mid-size businesses often (but not always) struggle in terms of performance because they may lack either set of advantages. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 20 Case Analysis Step 11: Business-Level Strategies of Competitors Utilize at least one of the generic strategy typologies (i.e., Porter or Miles & Snow) to describe the strategies of
  • 14. competitors. Draw a picture to illustrate the clustering of businesses in an industry along several generic strategy approaches. Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 21 7-4 Assessing Strategies Although the distinctions between generic business strategies are readily made in theory, they are not always easy to assign in practice. Formulating an effective competitive strategy is almost impossible without a clear understanding of the primary competitors and their strategies Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013 7-5 Global Concerns Common advice: “Think globally, but act locally.” Key question: Should a business vary its strategy considerably from one country to another, or should consistency be emphasized? Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
  • 15. 23