HR Strategy Exam

Question 1

strategy

Answer 1

set of goal-directed and integrated actions a firm takes to gain and sustain superior performance relative to competitors; the outcome of strategic management process

Question 2

good strategy

Answer 2

strategy that enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors in any competitive situation; consists of 3 elements - diagnosis, guiding policy, and set of coherent actions

Question 3

diagnosis

Answer 3

element that is part of a good strategy; identify competitive challenge with analysis of internal and external environments; define an organization’s competitive challenge through critical and honest assessment of status quo; part 1 of AFI

Question 4

guiding policy

Answer 4

element that is part of a good strategy; address competitive challenge with formulation; provides game plan for dealing with competitive challenge identified; part 2 of AFI

Question 5

set of coherent actions

Answer 5

element that is part of a good strategy; implement firm’s guiding policy; effective implementation through coherent and consistent set of actions; part 3 of AFI

Question 6

stages of the strategic management process

Answer 6

analysis, formulation, implementation (AFI)

Question 7

analysis

Answer 7

stage 1 of AFI; analyze the external and internal environment

Question 8

formulation

Answer 8

stage 2 of AFI; formulate an appropriate business and corporate strategy

Question 9

implementation

Answer 9

stage 3 of AFI; implement the formulated strategy through structure, culture, and controls

Question 10

how a company can gain competitive advantage in a competitive industry

Answer 10

a firm must provide EITHER goods or services consumers value more highly than those of its competitors; OR goods or services similar to competitors but at a lower price (differentiation or cost leadership)

Question 11

first step in gaining competitive advantage

Answer 11

analysis of the external and internal environments (part 1 of AFI); diagnosis to identify the competitive challenge which includes this analysis

Question 12

strategic commitments

Answer 12

decisions that are costly, have a long-term impact, and are difficult to reverse (contrast with tactical decision which are short-term and can be easily reversed)

Question 13

T/F: firms should keep their vision statements customer oriented rather than product oriented

Answer 13

true

Question 14

customer oriented vision

Answer 14

allows companies to adapt to changing environments; defines a business in terms of providing solutions to customer needs

Question 15

product oriented vision

Answer 15

defines a business in terms of good or service provided; companies are more likely to fail

Question 16

how strong ethical values benefit a firm

Answer 16

they underlie the vision statement and provide stability to the strategy, laying the groundwork for long term success; once the company is pursuing its vision and mission in its quest for competitive advantage, they serve as guardrails to keep the company on tract

Question 17

strategic leadership (application question)

Answer 17

executives’ use of power and influence to direct the activities of others when pursuing and org’s goals

Question 18

power

Answer 18

strategic leader’s ability to influence other org members to do things that they wouldn’t do otherwise

Question 19

position power

Answer 19

power based on position of authority (CEO)

Question 20

informal power

Answer 20

power based on skills like persuasion that is used to influence

Question 21

level 5 manager

Answer 21

executive that builds greatness by combining willpower and humility

Question 22

corporate strategy

Answer 22

where to compete in the industry, markets, and geography; led by corporate executives at HQ (CEO and others)

Question 23

business strategy

Answer 23

how to compete (cost leadership, differentiation, and value innovation); led by strategic business units (SBUs) which are standalone divisions of a larger conglomerate, each with their own P&L responsibility (usually have SBU CEOs)

Question 23

different functions that general managers in strategic business units perform

Answer 23

general managers in SBUs must answer business strategy questions relating to how to compete to achieve superior performance; within the guidelines from corporate headquarters, they formulate an appropriate generic business strategy - cost leadership, differentiation, or value innovation - in their quest for competitive advantage