Exam 1

Question 1

Strategy

Answer 1

the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors

Question 2

Strategy is a combination of…

Answer 2

plan and action oriented towards a goal

Question 3

3 specific elements of strategy

Answer 3

analysis, formulation, and implementation

Question 4

Analysis

Answer 4

strategic leadership

• ->external analysis
• ->internal analysis

Question 5

Formulation

Answer 5

business strategy

corporate strategy

Question 6

Implementation

Answer 6

org design

corporate governance

Question 7

Stakeholders

Answer 7

organizations, groups, and individuals that can affect or are affected by a firm’s actions

Question 8

External Shareholders

Answer 8

customers, suppliers, alliance partners, creditors, unions, communities, governments, media

Question 9

Internal Shareholders

Answer 9

employees, stockholders, board members

Question 10

Philanthropic Responsibilities

Answer 10

Corporate citizenship

Question 11

Ethical Responsibilities

Answer 11

Do what is right, just, and fair

Question 12

Legal Responsibilities

Answer 12

Laws and regulations are society’s codified ethics

Define minimum acceptable standard

Question 13

Economic Responsibilities

Answer 13

Gain and sustain competitive advantage

Question 14

Mission

Answer 14

what an organization does and why it exists, sometimes called the purpose statement

Question 15

Vision

Answer 15

what an organization wants to accomplish/ become

Question 16

Values

Answer 16

what an organization believes in

Question 17

Top-Down

Answer 17

a rational, data-driven strategy process through which top management attempts to program future success

Question 18

Emergent

Answer 18

any unplanned strategic initiative often bubbling up from the bottom of the organization

Question 19

Realized

Answer 19

combination of intended and emergent strategy

Question 20

Three views of performance

Answer 20

financial performance
--accounting
--market
--economic
balanced scorecard
triple bottom line

Question 21

Limitations of accounting measures

Answer 21

backward looking
do not capture “off-balance sheet” items
focus on tangible assets and struggle to capture value of intangibles

Question 22

Limitations on market measures

Answer 22

highly volatile and subject to growing expectations
macroeconomic factors not controlled by managers
psychological mood of investors (irrational)

Question 23

Balanced scorecard

Answer 23

harnesses multiple internal and external metrics

Question 24

Advantages of the balanced scorecard

Answer 24

considers intangibles and easily translates into action

Question 25

Disadvantages of the balances scorecard

Answer 25

difficult to decide which metrics to use

Question 26

Pestel Framework

Answer 26

``` External Environment: political economic sociocultural technological ecological legal ```

Question 27

Porter's Five-Forces Framework

Answer 27

``` threat of new entrants bargaining power of buyers threat of substitute products or services bargaining power of suppliers -->rivalry among existing competitors ```

Question 28

The Resource-Based View

Answer 28

considers all resources (tangible and intangible) capabilities, and competencies

Question 29

Which resources/capabilities are key for sustained competitive advantage?

Answer 29

``` Those that are: Valuable Rare Costly to Imitate Organizationally embedded ```

Question 30

Is it valuable?

Answer 30

Yes, continue to Rare | No, competitive disadvantage

Question 31

Is it rare?

Answer 31

Yes, continue to costly to imitate | No, competitive parity

Question 32

Is it costly to imitate?

Answer 32

Yes, continue to organized to capture value | No, temporary competitive advantage

Question 33

Is it organized to capture value?

Answer 33

Yes, sustained competitive advantage | No, temporary competitive advantage

Question 34

Sustained competitive advantage

Answer 34

The firm has found a resource, capability, or competency that is valuable, rare, and costly to imitate and has used it to organize themselves so it will capture value

Question 35

Strategic Trade-Off

Answer 35

Cost vs. Value

Question 36

Cost Leadership

Answer 36

competitive scope is broad and strategic position cost is low

Question 37

Focused Cost Leadership

Answer 37

competitive scope is narrow and strategic position cost is low

Question 38

Differentiation

Answer 38

competitive scope is broad and strategic position is differentiation

Question 39

Focused Differentiation

Answer 39

competitive scope is narrow and strategic position is differentiation

Question 40

Blue Ocean Strategy

Answer 40

Is in the middle, it is low cost while still being differentiated

Question 41

Stuck in the Middle

Answer 41

Is in the middle by trying to differentiate and be low cost but has failed to make it work and now cant find a new/change their strategy