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56 Cards in this Set
- Front
- Back
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Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects:
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Where are we now? Where do we want to go? How are we going to get there?
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What is strategy?
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The competitive moves and business approaches a company's management are using to:
grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance |
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Which one of the following is not related to actions and approaches that comprise a company's strategy?
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How to prove to shareholders that the company's business model is viable
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In answering the question, "How are we going to get there?" management must have deliberate plans for addressing such issues as
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changing market conditions, development of internal capabilities and competencies, and allocation of financial resources.
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Which of the following is not an element of a company's business strategy?
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Management actions to revise the company's financial and strategic performance targets
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Which of the following is not one of the most frequently used strategic approaches to building competitive advantage?
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Striving for a competitive edge based on bigger profit margins
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The most important aspect of a company's business strategy
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is its approach to competing in the marketplace.
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Strategies that yield sustainable competitive advantage is important because
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a strategy that yields a competitive advantage over rivals and creates an enduring demand for a company's products or services is the key to a company's ability to earn ongoing above-average profits.
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A company achieves sustainable competitive advantage when
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an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors
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What is a company's most reliable ticket to above-average profitability?
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A strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage
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Approaches to achieving a sustainable competitive advantage include which of the following?
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Developing unmatched resource strengths and competitive capabilities.
B) Focusing on a narrow market niche within an industry. C) Strategies keyed to creating a differentiation-based advantage. D) Strategies keyed to developing a cost-based advantage. E) All of these. |
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Company strategies evolve because (6 Reasons)
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of the ongoing need to respond to changing market conditions,
the fresh moves of competitors, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy, and any evidence that indicates the strategy is not working well |
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It is normal for a company's strategy to end up being
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a blend of deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.
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Which of the following statements about a company's realized strategy is true?
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A company's realized strategy generally changes very little over time unless a newly-appointed CEO decides to take the company in a new direction with a new strategy.
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A company's business model
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1) customer value proposition
(2) profit formula (3) key resources and processes required to create and deliver customer value |
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A viable business model
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must have a tight fit with organizational capabilities and generate revenues sufficient to cover costs and deliver good profitability
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Which of the following statements concerning Sirius XM's business model and that of over-the-air radio broadcasters (as discussed in Concepts & Connections 1.2) is false?
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The profit formula for over-the-air radio broadcasters involves fixed costs associated with operating a satellite-based music delivery service.
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A winning strategy is one that
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fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance.
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Which one of the following questions can be used to distinguish a winning strategy from a so-so or losing strategy?
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Has the strategy produced good financial performance?
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Which of the following questions ought to be used to distinguish a winning strategy from a mediocre or losing strategy?
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Has management responded to changing market conditions with emergent strategy elements?
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Which one of the following is not an integral part of the managerial process of crafting and executing strategy?
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Choosing a strategic intent
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A company's strategic plan consists of
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management's vision mapping out where a company is headed, the company's financial and strategic objectives, and management's strategy to achieve the objectives and move the company along the chosen strategic path.
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A strategic vision for a company
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Describes "where we are going" by delineating the course and direction management has charted for the company's future product-customer-market-technology focus
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The difference between a company's mission statement and the concept of a strategic vision is that
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a mission statement typically concerns an enterprise's present business scope and purpose—"who we are, what we do, and why we are here"—whereas the focus of a strategic vision is on the direction the company is headed and what its future product-customer-market-technology focus will be.
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Which one of the following is not a characteristic of an effectively-worded strategic vision statement
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Concrete and unambiguous (leaves no doubt as to what the company is trying to accomplish for shareholders)
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According to both the text discussion and the summary in Table 2.3, which of the following is not a common shortcoming of company vision statements?
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Lacking in analysis—based more on managerial emotion and excessive ambition than on what is realistically achievable
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A company's objectives
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convert the strategic vision into specific performance targets—well-stated objectives are quantifiable, or measurable, and contain a deadline for achievement.
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Establishing and achieving strategic objectives merits very high priority on management's agenda because
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strategic outcomes are LEADING indicators of a company's future financial performance and business prospects
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A balanced scorecard for measuring company performance
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entails setting both financial and strategic objectives and putting balanced emphasis on their achievement
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Company objectives need to be...
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need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.
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Whose job is it to craft a company strategy?
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a job for a company's whole management team—senior executives plus the managers of business units, operating divisions, functional departments, manufacturing plants, and sales districts (as per the strategy-making hierarchy shown in Figure 2.2).
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Strategy-making is more of a 1)___________________ group effort that involves 2)_____________ and 3) _________ _____________ throughout the company.
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1 collaborative
2 managers 3key employees |
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As per Figure 2.2, the strategy-making hierarchy in a single business company consists of
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business strategy, functional area strategies, and operating strategies.
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Functional strategies
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add detail to the overall business strategy and specify what resources and organizational capabilities are needed to put the business strategy into action
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Operating strategies concern
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the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and specific operating activities (the management of specific brands, supply chain–related activities, and website sales and operations).
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Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?
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Engaging the services of staffing firms to maintain the company's personnel data
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Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to
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decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.
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Leading and managing the strategy process calls upon managers to
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making sure the company has a good strategic plan, staying on top of what is happening, putting constructive pressure on the organization to achieve good results, pushing corrective actions, leading the development of stronger capabilities, and displaying ethical integrity and spearheading social responsibility initiatives
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What separates companies that make a sincere effort to be good corporate citizens from companies that are content to do only what is legally required of them
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are company leaders who believe that making a profit is not good enough and that performance should also include social and environmental metrics.
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Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?
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Directing senior executives as to what the company's long-term direction, objectives, business model, and strategy should be and, further, closely supervising senior executives in their efforts to implement and execute the strategy
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Where are we now is answered by?
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Examining the companys current financial performances, market standing, competitive valuable resources, weakness, and conditions that might affect the company.
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The company's strategy is all about how...
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1. How to out compete rival
2.How to respond to changes in the market and economy 3. How to manage each functional piece of business 4. Develope important resources 5. Take advantage of growth opportunities 6. Strategic and Financial Objectives |
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What is the most important aspect of a company's business strategy?
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Its approach to competing in the marketplace.
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Sustainable Competitive Advantage?
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Allows a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over the offerings of competitors.
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What are the four most frequently used and dependable strategic approaches?
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1. Developing a cost-based Advantage
2. Creating a Differentiation-based Advantage 3.Focusing on a narrow market niche with in an industry 4.Developing competitively valuable resources and capabilities that rivals can't easily match, copy or trump with substitute resources. |
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Differentiation based advantage?
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Adding product or service attributes that offer customers greater tangible or intangible benefits than the product or service of low cost rivals.
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Narrow Niche market?
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serving the special needs and tastes of only a SMALL SEGMENT of an industry's buyers, rather than attempt to appeal to all buyers.
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Resource Based strategies?
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use insync with low cost, differentiation and narrow niche
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True or False: A Company's strategy is a one time event?
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False: Its always a work in Progress
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When is a major strategy shift called for?
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When a strategy is clearly failing and the company faces a financial crisis.
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Deliberate Strategy
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Current strategy flows from ongoing actions that have proven successful and newly launched initiatives aimed at building a larger lead over rivals.
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Abandoned Strategy Elements
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A company's deliberate strategy which fails in the market place
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Emergent Strategy
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Unplanned, reactive judgements that are affected by strategic moves of rivals, shifts in customer preferences, fast-changing technology, new market opportunities
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Realized Strategy
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Combination of deliberate planned elements and unplanned, emergent elements.
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3 Tests of a winning Strategy?
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1. Does the strategy fit the company's situation
2. Has the strategy yielded a sustainable competitive advantage 3. Has the strategy produced good financial performance |
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A company's __________ ___________ lays out its future direction, performance targets, and strategy.
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Strategic Plan
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