Exam 1: Learning Competency Questions Flashcards
Why does a company need financial objectives?
Because without adequate profitability and financial strength, the company’s ultimate survival is jeopardized.
When a company is confronted with significant industry change that mandates radical revision of its strategic course, the company is said to have encountered a…
Strategic inflection point
What is not an accurate attribute of an organization’s strategic vision?
Specifying how the company intends to implement and execute its business model
The strategy-making hierarchy in a diversified company like the Alibaba Group, and ecommerce giant based in china, consists of…
Corporate strategy, business strategies, functional strategies, and operating strategies
Siemens AG, Hilton Hotels, Wells Fargo Bank, Ann Taylor Stores, and Ford Motor Company are examples of companies that have adopted the balanced scorecard in order to…
Set both financial and strategic objectives and putting balanced emphasis on their achievement
A company;s values relate to such things as…
Fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship.
What is the difference between a mission statement and strategic vision?
Mission (Who we are, what we do, why we’re here) is like a blueprint of how to get to the vision (Where we are going)
The most important aspect(s) of a company’s business strategy…
Are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage.
A company’s business model consists of its…
Profit formula and customer value proposition.
Square’s blueprint for how and why the company’s business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment…
Best describes what is meant by a company’s business model.
A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. Which of the following regarding the company’s strategy is true?
It is a winning strategy.
In counseling a local upscale coffee roasting and retail business about how to achieve a sustainable competitive advantage, you most likely would advise them to…
Have some distinctive strategic element that draws in customers and produces a competitive edge.
Pick one of the following companies and describe its strategy - as per textbook definition.
Make sure to include the following:
1. Set of actions managers take
2. How is outperforms competitors
3. How it achieves superior profitability
Compare and contrast the textbook’s definition of strategy and business model.
Strategy is the set of actions managers take to outperform competitors and achieve superior profitability, while the business model measures how implementation of strategy will create value and earn $ through its value proposition and profitability formula.
An industry’s driving forces…
Generally act in ways that will strengthen or weaken market demand, make competition more or less intense, and lead to higher or lower industry profitability
Some people think Porter’s 5 forces framework perpetuates the practice of viewing stakeholders (e.g. buyers and suppliers) as opponents or simply as means to an end, rather than seeing them as collaborative partners in value creation? What do you think? Is there any value in using Porter’s framework?
Using Porter’s 5 forces framework can still bring value by helping understand the complete strategy landscape and act as a guiding framework, but this doesn’t mean you have to view stakeholders as competitors. It is more of something to keep in mind as you collaborate with stakeholders to produce value for them.
Identify at least 3 benefits of constructing a strategic group map.
- Pinpoint the most important characteristics of strategy in the industry
- See which firms are your closest competitors in your “common group” - and see their relative market share
- Look for empty spaces on the map and see if there is any potential profitability there
