Chapter 1: Strategy

Question 1

strategic management

Answer 1

an integrative management field combining AFI in quest for competitive advantage

Question 2

mastery of strategic mg enables you to (3)

Answer 2

1. view a firm in its entirety
2. think like a GM
3. position your org for superior performance

Question 3

strategy

Answer 3

goal-directed actions to gain, sustain performance

Question 4

strategy is NOT (3)

Answer 4

1. grandiose statements (“we will win!”)
2. failure to face a competitive adv. (ex. blockbuster vs netflix)
3. operational effectiveness, competitive benchmarking, tactical tools (ex. pricing strategy)

Question 5

a good strategy is based on 3 elements:

Answer 5

1. diagnosis of competitive challenge (Analysis)
2. guiding policy to address challenge (Formulation)
3. set of actions to implement guiding policy (Implementation)

Question 6

competitive advantage

Answer 6

superior performance relative to other competitors

Question 7

competitive advantage is _________, not _______.

Answer 7

relative
absolute

Question 8

to assess competitive advantage, one must _________.

Answer 8

benchmark – compare firm to competitors and to industry average

Question 9

sustainable competitive advantage

Answer 9

a firm able to outperform for a prolonged period

Question 10

sustainable competitive advantage can be measured by things like… (3)

Answer 10

ROE, ROI, stock price, etc.

Question 11

how to gain a competitive adv.

Answer 11

goods/services must be valued more highly than that of competitors or are similar at a lower price

Question 12

strategic positioning

Answer 12

unique position in an industry allowing a firm to provide value to customers

Question 13

value creation - costs =

Answer 13

economic contribution (aka the greater, the better)

Question 14

_____ ________ lays the foundation for a successful economy (education, infrastructure, public safety, etc.)

Answer 14

value creation

Question 15

stakeholders

Answer 15

orgs/groups/individuals that can affect or be affected by a firm’s actions and typically have an interest in firm performance

Question 16

external stakeholders

Answer 16

customers, suppliers, alliance partners, creditors, govt., etc.

Question 17

internal stakeholders

Answer 17

employees, stockholders, board members

Question 18

stakeholder strategy

Answer 18

managing stakeholders to gain competitive advantage

Question 19

stakeholder _____ ______ helps to recognize, prioritize, and address

Answer 19

impact analysis

Question 20

plan

Answer 20

carefully crafted set of steps that a firm intends to follow

Question 21

pattern

Answer 21

consistent stream of actions

Question 22

realized strategy is a contribution of _____ and _____ _____.

Answer 22

deliberate and emergent strategy

Question 23

perspective

Answer 23

how executives/employees view and interpret the competitive landscape

Question 24

ploy

Answer 24

specific moves/tactics designed to outwit competitors