Chapter 1

Question 1

Why Strategy?

Answer 1

• A need to grapple with the future.
• A way to improve the current position
• A way to be consistent with goals
• A way to achieve change
• A way to allocate resources
• A way to respond to competition.

“If you don’t know where you’re going, most roads look useful. You just may not be happy once you get there.”

Question 2

Strategic Management

Answer 2

Analysis, Decisions, and actions an organization undertakes to create and sustain competitive advantages

Question 3

Four Principles of Strategic Management?

Answer 3

1. Directs the organization toward overall goals and objectives
2. Includes multiple stakeholders in decision-making
3. Needs to incorporate short-term and long-term objectives
4. Recognizes trade-offs between efficiency and effectiveness

Question 4

The Strategic Management Process

Answer 4

Analysis⏩Formulation⏩Implementation

Question 5

What is being analyzed in the SMP?

Answer 5

Organizational goals and objectives
Internal environment
External environment
Firm’s intellectual assets

Question 6

Formulation in the SMP

Answer 6

Business level strategies
Corporate level strategies
International level strategies
Entrepreneurial strategy and competitive dynamics

Question 7

Implementation in the SMP

Answer 7

Strategic controls and organizational designs
Coordination and integration among units of the firm
Effective leadership

Question 8

What is the role of Corporate governance?

Answer 8

Structure the relationships b/w shareholders, management, BOD that are aligned with the stakeholders needs and consistent w/ 
Law
Regulation, 
Social responsibility
Environmental sustainability

Question 9

What is the “triple bottom line”?

Answer 9

The interaction of environmental, social and financial performance

Question 10

Mission statement

Answer 10

Purpose of the company

The basis for competition and competitive advantage

Question 11

Vision Statement

Answer 11

The long-term goal of the corporation
Overarching
Inspiring statement of intent

Question 12

Strategic objectives

Answer 12

• These “operationalize” the mission statement
• Framed for a variety of audiences
• Measurable, specific, appropriate, realistic, and timely
• Focus the employees at each level of the org
• Motivate an inspire commitment
• Resolve conflicts
• Provide a structure for rewards and recognition