Intro to Bus Strategy

Question 1

Identify the major steps in a strategic planning process.

Answer 1

1. Establish entity’s mission, values and objectives;
2. Assess the entity (internal analysis) and the environment in which it operates (external analysis; environmental scanning);
3. Establish goals;
4. Formulate strategies;
5. Implement strategies;
6. Evaluate and control strategic activities.

Question 2

Define “strategic planning”.

Answer 2

Strategic planning is the sequence of interrelated procedures for determining an entity’s long-term goals and identifying the best approaches for achieving those goals.

Question 3

Define an entity’s values and the operational role they play.

Answer 3

An entity’s values are the underlying beliefs that govern the entity’s operations.

They prescribe the conduct of an entity in its relationship with other parties.

Question 4

Define “mission statement”

Answer 4

An expression of the purpose and range of activities of the entity.

Question 5

Define “entity values”

Answer 5

The underlying beliefs that govern the operations of an entity and the conduct of its relationship with other parties.

Question 6

Define “objectives”.

Answer 6

The desired, measurable results the entity seeks to achieve related to such factors as profitability, growth, market share, innovation, etc.

Question 7

A variation of a ___ ___ is used for analyzing the external macro-environment in which the entity operates (or may operate).

Answer 7

PEST analysis

Question 8

The ___ ___ ___ (developed by Michael Porter) for determining the nature, operating attractiveness and likely long-run profitability of a competitive industry may be used for analyzing the industry in which the entity operates (or may operate).

Answer 8

five forces framework

Question 9

A ___ ___ may be used for analyzing the internal strengths and weaknesses of the entity, the external opportunities, threats present in its operating environment (or environment in which it may operate), and the relationship between the characters of the entity and its environment.

Answer 9

SWOT analysis

Question 10

___ ___ is the process of deciding what the entity wants to accomplish.

Answer 10

Goal setting

Question 11

Goals should be formulated so that they meet the ___ test; they must be: ?

Answer 11

Goals should be formulated so that they meet the **SMART test; **they must be:

• *a. Specific;
  b. Measurable;
  c. Attainable;
  d. Relevant;
  e. Time-bound.**

Question 12

What are the three industry-independent/entity-independent generic strategies have been identified by Michael Porter?

Answer 12

Three industry-independent/entity-independent generic strategies have been identified by Michael Porter:

1. Cost leadership;
2. Differentiation;
3. Focus.

Question 13

After setting goals, the entity should work on formulating ___ which are guidelines for achieving a competitive advantage in the market.

Answer 13

strategies

Question 14

In order to implement its strategies, the entity initiates the ___ and ___ that apply the entity’s ___ to carry out its strategies so as to achieve its objectives and goals

Answer 14

programs and activities; resources

Question 15

When an entity implements a strategy that other entities are unable to duplicate, or find it too costly to imitate, the strategy provides a ___ ___.

Answer 15

competitive advantage.

Question 16

Establishing a ___ ___ should be the initial activity in the planning process.

Answer 16

mission statement

Question 17

___ ___ is concerned with the relationship between an entity and its environment.

Answer 17

SWOT analysis

Question 18

___ ___ is concerned with the macro-environment in which an entity operates.

Answer 18

PEST analysis

Question 19

The ___ ___ in which an entity operates establishes the broadest economic context of concern to the entity.

Answer 19

economic system

Question 20

An entity’s ___ ___ provides an expression of its purpose and range of activities.

Answer 20

mission statement

Question 21

___ and ___ is concerned with the measurement of post-performance characteristics to determine whether an entity is achieving its strategic objectives and to implement changes as needed to achieve objectives.

Answer 21

Evaluation and control

Question 22

What identifies a framework for gauging the attractiveness of the competitive environment of an industry?

Answer 22

Porter’s Five Forces Framework

Question 23

Central to the success of an entity’s activities is the ___ ___ ___ of the entity.

Answer 23

strategic planning process