Using Strat 1 Dataset

HOMEWORK 1 AND 2 USING STRAT 1 DATASET

1. Get AMOS Class Demo Program 1 (which uses Strat1 dataset) and run it on your PC (this is a two factor CFA). This will enable you to check that the AMOS software has been installed properly and should get you the same output you saw in class.

2. HW 1: Get the AMOS graphics and AMOS basic demo programs from website and modify them to add a 3rd factor to the model (note, you will know when you have done them correctly as you will get a chi square of approximately 94.05 with 62 d.f.).

Using the Strat1 dataset, set up a 3 factor model (CFA 1) using both AMOS graphics and AMOS basic. Run both and compare results. Bring output from both to class.

To build the 3rd factor, you will need to add a dimension called scope to the model. This scope factor should initially composed of items P1Q2A, P1Q2C, P1Q2D, and Q1Q2H (the questionnaire is attached to this page). Set up the problem using both the Graphics and Basic approaches to AMOS. CFA 1 can be considered the base model which we will then modify for HW2. Be sure to print out the output from both to be sure you have the same model and are getting the same results.

3. HW2 - Item analysis using the Strat1 dataset.

Determine where the problems with CFA 1 are and by using the other items in the dataset, determine what improvements you can make by substituting items in the existing CFA with other items designed to measure the same dimension (see the questionnaire for more detail). Please retain 5 items for differentiation, 4 items for cost leadership and 4 items for scope.

Write up a short discussion of what you did and report results (Chi square, GFI, AGFI, CFI should be reported). Note what items you tried to substitute and what were the results. We will see who has the best fitting model for class. Limit your write-up to 3 pages single space to hand in. Business Strategy Questions: Differentiation - P1Q1A through P1Q1H Cost Leadership - P1Q1I through P1Q1N Growth Orientation - P1Q1O through P1Q1U Scope - P1Q1A through P1Q2H

Part I: The first set of questions asks for information about the overall strategy of your business unit.

Please circle the number which you feel best answers the question.

1. To what extent is the strategy of your business to... a) develop new products and/or services? ...... 1 2 3 4 5 6 7 b) provide unique products and/or services? ...... 1 2 3 4 5 6 7 c) offer products and/or services for specialized needs? ...... 1 2 3 4 5 6 7 d) offer higher quality products and/or services than your competitors? ...... 1 2 3 4 5 6 7 e) offer innovative products and/or services? ...... 1 2 3 4 5 6 7 f) offer highly differentiated products and/or services? ...... 1 2 3 4 5 6 7 g) offer a high degree of value in your products and/or services? ...... 1 2 3 4 5 6 7 h) offer products and/or services with distinctly different features from those of competing products...... 1 2 3 4 5 6 7 i) be the lowest cost provider in your industry? ...... 1 2 3 4 5 6 7 j) provide your customers with the lowest prices among your major competitors? ...... 1 2 3 4 5 6 7 k) invest in cost saving technology? ...... 1 2 3 4 5 6 7 l) emphasize efficiency? ...... 1 2 3 4 5 6 7 m) redesign products or services to reduce costs? ...... 1 2 3 4 5 6 7 n) strive for high volume to spread costs? ...... 1 2 3 4 5 6 7 o) search out high growth markets for your products/services? ...... 1 2 3 4 5 6 7 p) dominate stable, slower growth markets? ...... 1 2 3 4 5 6 7 q) develop products and/or services for new markets? ...... 1 2 3 4 5 6 7 r) find new applications for existing products and/or services? ...... 1 2 3 4 5 6 7 s) find growth in existing markets? ...... 1 2 3 4 5 6 7 t) seek growth by moving into markets closely related to your current markets? 1 2 3 4 5 6 7 u) grow by moving into new markets? ...... 1 2 3 4 5 6 7

2. Compared to your competitors, to what extent does your business strategy call for… a) offering more products and/or services than your competitors? ...... 1 2 3 4 5 6 7 b) offering different products and/or services than competitors? ...... 1 2 3 4 5 6 7 c) offering a broader range of products/services than competitors? ...... 1 2 3 4 5 6 7 d) offering products/services in more market niches than your competitors? . . . . 1 2 3 4 5 6 7 e) focusing on a narrow market segment(s)? ...... 1 2 3 4 5 6 7 f) concentrating on market niches? ...... 1 2 3 4 5 6 7 g) offering a more limited line of products/services than competitors? ...... 1 2 3 4 5 6 7 h) serving more market segments than your competitors? ...... 1 2 3 4 5 6 7