ch 6

Question 1

what does strategic positioning attempt to do

Answer 1

achieve sustainable competitive advantage by preserving what is distinctive

Question 2

corporate-level strategy

Answer 2

focuses on the organization as a whole

executives generally referred to as the “c-suite”

Question 3

business-level strategy

Answer 3

focuses on individual business units or product/service lines

senior-level managers below the c-suite typically are responsible for this level

Question 4

functional-level strategy

Answer 4

applies to each functional area of the organization to support higher level strategies

functional managers lead planning discussions at this level

Question 5

does strategic management work for small as well as large firms

Answer 5

no

Question 6

5 steps of the strategic management process

Answer 6

1. establish the mission, vision, and values statements
2. assess the current reality
3. formulate the strategies and plans
4. implement the strategies and plans
5. maintain strategic control: the feedback loop

Question 7

SWOT analysis

Answer 7

a situational analysis in which a company assesses its strengths, weaknesses, opportunities, and threats

Question 8

internal environment

Answer 8

analysis of internal strengths and weaknesses

Question 9

external environment

Answer 9

analysis of external opportunities and threats

Question 10

external general environment

Answer 10

PESTEL - political, environmental, social, technological, environmental, legal

Question 11

VRIO

Answer 11

a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its value, rarity, imitability, and organization

Question 12

trend analysis

Answer 12

a hypothetical extension of a past series of events into the future. the basic assumption is that the picture of the present can be projected into the future

Question 13

scenario analysis

Answer 13

the creation of alternative hypothetical but equally likely future conditions

Question 14

the growth strategy

Answer 14

a grand strategy that involves expansion - as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served

Question 15

innovation strategy

Answer 15

growing market share or profits by improvising existing products and services or introducing new ones

Question 16

stability strategy

Answer 16

a grand strategy that involves little or no significant change

Question 17

defensive strategy

Answer 17

(aka retrenchment strategy) a grand strategy that involves reduction in the organization’s efforts

Question 18

BCG (Boston Consulting Group) Matrix

Answer 18

a management strategy companies use to evaluate their portfolio of strategic business units

Question 19

related diversification

Answer 19

a company purchases a new business that is related to company’s existing business portfolio

Question 20

unrelated diversification

Answer 20

a company acquires another company in a completely unrelated business. this strategy reduces risk

Question 21

vertical integration

Answer 21

a firm expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products

Question 22

Porter’s Model for Industry Analysis

Answer 22

business-level strategies originate by evaluating five competitive forces in the firm’s environment:

threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threats of substitute products or services, rivalry among competitors

Question 23

cost-leadership strategy

Answer 23

keeping costs and prices low for a wide market

Question 24

differentiation strategy

Answer 24

offering unique and superior value for a wide market

Question 25

cost-focus strategy

Answer 25

keeping costs and prices low for a narrow market

Question 26

focused-differentiation strategy

Answer 26

offering unique and superior value for a narrow market

Question 27

functional strategy

Answer 27

a plan of action by each functional area of the organization to support higher-level strategies (flow down)

Question 28

a company’s overall ability to execute is a function of effectively managing three processes:

Answer 28

people, strategy, operations

Question 29

4 execution roadblocks…

Answer 29

1. misaligned organizational culture
2. poor performance management leadership
3. conflicting functional objectives
4. employee’s resistance to change

Question 30

strategic control

Answer 30

consists of strategic implementation and taking appropriate action based on results

progress is monitored and evaluated in the control phase