Chapter 1- Strategy and Importance Flashcards
is the quest to gain and sustain competitive advantage.
Strategy
describes the goal-directed actions a firm intends to take in its quest to gain and sustain competitive advantage.
Strategy
t/f The firm that possesses competitive advantage provides superior value to customers at a competitive price or acceptable value at a lower price.
True
Profitability and market share are the consequences of __ value creation.
superior
A_ is an overarching approach taken to meet or exceed one’s goals and the actions taken relative to the original and overall goal set by higher authority, whether in a private enterprise or public organizations.
Strategy
__is about understanding where you are now, where you are heading and how you will get there.
Strategy
The essence of strategy, therefore, is being different from rivals. t/f
True
Managers accomplish this difference through __ staking out a unique position in an industry that allows the firm to provide value to customers, while controlling costs.
strategic positioning
It has been observed that the greater the difference between value creation and cost, the greater the economic contribution the firm makes, and thus the greater the likelihood for competitive advantage. T/FF
True
The more accurate the map, the better strategic decisions managers can make. T/f
True
It has been observed that the greater the difference between value creation and __, the greater the economic contribution the firm makes, and thus the __the likelihood for competitive advantage.
cost, greater
Positive feedback validates managers’ strategic assumptions while negative feedback allows managers to adjust their assumptions. t/f
True
Strategy is not A vision or mission statement . t/f
True
A goal, budget or business plan. Strategy is not a goal
strategy is neither a budget nor a business plan. t/f
True
Strategy is not, a zero-sum game - it is not always the case that one party wins while all others lose. t/f
True
Competitive benchmarking is not “strategy”. just- in-time inventory system,
enterprise resource planning system.
Operational effectiveness,
marketing skills and other functional expertise, along with best practices, contribute to a unique strategic position but by themselves, they are not a substitute for Strategy. T/f
True
When competitors cooperate with one another to achieve strategic objective, it is called __
co-opetition.
A __is an overarching approach taken to meet or exceed your goals, and the actions taken must relate to the original goal set by management.
STRATEGY
An _is a measurable action taken to execute the strategy agreed on by management and the rest of the organization.
objective
An objective follows the paradigm of the __ formula
SMART
SMART stands for
(Specific, Measurable, Actionable, Relevant and Time- based)
essay difference between strategy and objective by its purpose
A strategy maps out the path to your goal, while an objective breaks down the steps needed to get there.
essay difference between strategy and objective by its execution
Strategy comes from understanding your core values and motivations. It guides your overall direction. Objectives are created after the strategy, focusing on how to apply those values to complete tasks and improve along the way.
This step details what you want to achieve. In fact, the formulation of your goals and strategy should meet the requirements of this step to proceed.
Specific
Double-check and ensure that this is the direction you want to go and whether the steps in the strategy can be easily understood. The more clarity you have, the more likely it is to produce successful results.
Specific
Stating your evidence is crucial in finding out how you are measuring your goal. Setting up milestones can assist you inbreaking down a timeline to reach the desired steps of your objectives.
Measurable
Ensure that the objective is one you can achieve and is aligned with your strategy. Identifying your motivations in meeting your objectives helps you keep your focus on current tasks.
Achievable
It can outline the effort and resources needed to achieve your objective and move onto the next one.
Achievable
If you are applying for a job, you can use this step as a benchmark to see the number of positions you’ve applied to and amount of interviews you landed.
Measurable
Ensure that the objective is one you can achieve and is aligned with your strategy.
Achievable
Make sure that the objectives are aligned with your core values and with your long-term aspirations.
Relevant
Decide on the appropriate timeline to complete this objective and review if that pursuit is dependent on the completion of other objectives.
Time-based
can maximize the output of a team if it fully buys into the mission of the organization
Robust Strategy
