Chapter 6 Notes

Question 1

Strategic Positioning

Answer 1

To achieve sustainable competitive advantage by preserving what is distinctive about a company

Question 2

Three key principles of strategic positioning

Answer 2

Creation of a unique and valuable position, trade-offs in competing, creating a fit among activities

Question 3

Strategies is the creation of a unique position

Answer 3

serving few needs for many customers, broad needs for few customers, serving broad needs fr many customers

Question 4

Trade offs in competing?

Answer 4

Some strategies are incompatible so a company has to choose what to follow and what not to follow

Question 5

How does strategic management work for small firms?

Answer 5

It does work for small firms and large firms even though improvement in financials is small

Question 6

What are the 5 steps of the strategic management process

Answer 6

Establish the mission and vision, assess the current reality, formulate the grand strategy, implement the strategy and maintains strategic control.

Question 7

Current reality assessment/organization assessment

Answer 7

Looks at where the org stands and see what is working and what isn’t working to maximize efficiency.

Question 8

Grand Strategy

Answer 8

This is done after the assessment of current reality which explains how the orgs mission is to be accomplished
-Three common strategies of growth, stability and defense

Question 9

Strategy Formulation

Answer 9

The process of choosing among different strategies and altering them to best fit the orgs needs

Question 10

Implement the Strategy

Answer 10

puts the strategic plans in effect, and is only effective when it can be translated into lower level plans

Question 11

Maintain Strategic Control

Answer 11

consists of monitoring the execution of strategy and making adjustments

Question 12

Competitive Intelligence

Answer 12

Gaining info about competitors activities to anticipate moves . This can be gained through public prints, investor info and informal sources

Question 13

Environmental Scanning

Answer 13

Careful monitoring of and orgs environment to detect early signs of threats

Question 14

Trend Analysis

Answer 14

A hypothetical extensions of a past series of events into the future

Question 15

Contingency Planning/Scenario Analysis

Answer 15

Creation of alternative hypothetical but equally future conditions

Question 16

Porters 5 Competitive Forces

Answer 16

threat of new entrants, bargaining of power suppliers, bargaining power of buyers, threats of substitute products and services, rivalry among competitors