Ch. 8: Strategic Formulation and Execution

Question 1

strategic mgmt.

Answer 1

the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the org. and its environment

Question 2

4 purposes of strategy

Answer 2

1. target customers
2. core competence (competitive advantage)
3. build synergy
4. deliver value

Question 3

3 levels of strategy

Answer 3

1. corporate level (org. as a whole)
2. business-level (each product line)
3. functional level (depts.)

Question 4

strengths

Answer 4

positive internal characteristics the org. can exploit to achieve its goals

Question 5

weaknesses

Answer 5

interntal characteristics that might inhibit the company’s performance

Question 6

opportunities

Answer 6

characteristics of the external environment that might aid the company in achieving its goals

Question 7

threats

Answer 7

characteristics of the external environment that might hinder the company’s performance

Question 8

Describe the BCG Matrix

Answer 8

star: high growth, large market share
question market: high growth, small market share
cash cow: low growth, large market share
dog: low growth, small market share

Question 9

Porter’s 3 competitive strategies

Answer 9

cost leadership: aggressive cost cutting and increasing efficiency

differentiation: distinguish product/services from those in the market
focus: target market (w/above strategy)

Question 10

3 global strategies

Answer 10

1. globalization: standardization in product design and advertising
2. multidomestic: independent operations by country
3. multinational: combination of globalization and national responsiveness

Question 11

4 steps in strategy execution

Answer 11

1. visible leadership
2. clear roles and accountability
3. candid commentary
4. appropriate HR practices