Chapter 1

Question 1

What are the three elements of a good strategy?

Answer 1

(1) A diagnosis of the competitive challenge.
(2) A guiding policy to address the competitive challenge.
(3) A set of coherent actions to implement the firm’s guiding policy.

Question 2

Which steps do you need to perform in order to secure a competitive advantage?

Answer 2

The first to gain and sustain competitive advantage is to define an organization’s vision, mission, and values

Question 3

What is a core value statement?

Answer 3

A core value statement is a statement of principles to guide an organization as it works to achieve its vision and fulfil its mission, for both internal conduct and external interactions. It often includes explicit ethical considerations. Such statements can help provide the organization’s employees with a moral compass.

Question 4

What are organizational core values?

Answer 4

Organizational core values are ethical standards and norms that govern the behaviour of individuals within a firm or organization. They underlay the vision statement and provide stability to the strategy, thus laying the groundwork for long-term success, and once the company is pursuing its vision and mission in quest for competitive advantage, they serve as guardrails to keep the company on track

Question 5

Whats an AFI strategy framework?

Answer 5

Analyze - Formulate - Implement

–>help managers plan and implement strategies that can result in competitive advantage (gain & sustain)