Chapter 8: Strategy Formulation and Execution

Question 1

What is Strategic Management?

Answer 1

Decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals

Question 2

What are the three levels of strategy in organizations?

Answer 2

Corporate-level strategy (what business are we in?)

Business-level strategy (how do we compete?)

Functional-level strategy (how do we support the business-level strategy?)

Question 3

Strategy Formulation

Answer 3

Assessing the external environment and internal problems to create goals and strategy

Question 4

Strategy Execution

Answer 4

The use of managerial and organizational tools to direct resources toward accomplishing strategic results

Question 5

What does the BCG matrix do?

Answer 5

Organizes business along two dimensions (business growth rate and market share).

4 categories for corporate portfolio include high/low market share and high/low business growth

Question 6

What is related/unrelated diversification?

Answer 6

Related- expansion into new business related to existing business activities

Unrelated- expansion into new lines of business

Question 7

What are Porters competitive strategies?

Answer 7

Variety, Cost leadership, focus strategy

Question 8

What are the tools for putting strategy execution onto action?

Answer 8

Visible leadership, clear roles and accountability, human resources, candid communication