Lesson 7

Question 1

The Notion of Strategy:

Answer 1

A comprehensive plan guiding resource allocation to achieve long-term organization goals

Question 2

What is Competitive advantage

Answer 2

An ability to do something so well that one outperforms competitors

Question 3

Strategic Management:

Answer 3

The process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage

Question 4

What are Core Values

Answer 4

Broad beliefs about what is or is not appropriate behavior

Question 5

Organizational culture:

Answer 5

Organizational culture reflects the predominant value system of the organization as a whole

Question 6

Operating Objectives of a Business:

Answer 6

1. Profitability
2. Sustainability
3. CSR
4. Financial health
5. Cost efficiency

Question 7

What is the SWOT analysis

Answer 7

Strengths, Weaknesses, Opportunities and Threats

Question 8

Contingency thinking:

Answer 8

Tries to match managerial responses with problems and
opportunities unique to different situations (No “one best way” to manage in all circumstances)

Question 9

Michael Porter’s 5 forces analysis

Answer 9

1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Threat of Substitute Products or Services
4. Bargaining Power of Buyers
5. Rivalry among existing competitors

Question 10

Corporate Strategy:

Answer 10

Sets long-term direction for the total enterprise

Question 11

Business Strategy:

Answer 11

How a division or strategic business unit will compete in its product or service domain

Question 12

Functional Strategy:

Answer 12

Guides the use of resources within one specific area of operations

Question 13

Portfolio Planning:

Answer 13

Seeks the best mix of investments among alternative business opportunities

Question 14

BCG Matrix:

Answer 14

Analyses business opportunities according to market growth rate and market share

Question 15

Globalization strategy:

Answer 15

World is one large market; standardize products and advertising as much as possible

Question 16

Multidomestic strategy:

Answer 16

Customize products and advertising to fit local markets as much as possible

Question 17

Transnational strategy (TCNs):

Answer 17

Balance efficiencies in global operations and responsiveness to local markets

Question 18

Growth strategies:

Answer 18

Seek an increase in size and the expansion of current operations (e.g., by concentration, or by diversification)

Question 19

Retrenchment and Restructuring strategies:

Answer 19

Pursue radical changes to solve problems (e.g., liquidation, downsizing, divestiture, turnaround)

Question 20

Strategic alliances:

Answer 20

Two or more organizations partner to pursue an area of mutual interest (e.g., supplier alliances, outsourcing alliances, distribution alliances, and co-opetition)

Question 21

Business-level strategic decisions are driven by:

Answer 21

1. Market scope
2. Source of competitive advantage

Question 22

Failures of substance:

Answer 22

Inadequate attention to major strategic planning elements

Question 23

Failures of process:

Answer 23

1. Poor handling of strategy implementation
2. Lack of participation error
3. Goal displacement error

Question 24

Strategic control:

Answer 24

Top management teams (TMTs) make sure strategies are well
implemented and that poor strategies are scrapped or modified

Question 25

Corporate governance:

Answer 25

System of control and monitoring of top management teams
(TMTs)