Module 1

Question 1

• decisions made by firms regarding investments, commitments, and other aspects of operations that create and
•sustain competitive advantage
process of selecting the best action to meet organizational objectives

Answer 1

Strategy Formulation

Question 2

a simple plan. It is an executable plan of action that describes how an individual or organization will achieve a stated mission

Answer 2

Strategy

Question 3

the process by which a strategy is created is referred to as a strategy formulation process. results in the strategy, plan or solution that is to be an implemented. Such a process defines the steps to take to formulate what will hopefully be the optimal strategy or solution.

Answer 3

Strategy Formulation process

Question 4

the expected results of a strategy are dependent on the strategist. the organization, and the situation for which the strategy is required. Strategies are intentionally developed for many different purposes and under a variety of conditions or situations. The desired
results are expected to be different in each unique situation.

Answer 4

The expectations of a strategy

Question 5

organizations offen lock a structure that will enable them to filter, organize, prioritize and manage all the information entering the strategy formulation process

Answer 5

Structure

Question 6

individuals often do not have the information they need, or know what information they need, to create breakthrough strategies and solutions.

Answer 6

Information

Question 7

individuals must simultaneously process hundreds of pieces of information when attempting to formulate strategies, define plans and make complex decisions.

Answer 7

Processing power

Question 8

This involves establishing long-term goals of an organization. Strategic decisions can be taken once the organizational objectives are determined.

Answer 8

Establishing organizational objectives

Question 9

This involves SWOT analysis, meaning identifying the company’s strengths and weaknesses and keeping vigilance over competitors’ actions to understand opportunities and threats. Strengths and weaknesses are internal factors which the company has control over. Opportunities and threats, on the other hand, are extemal factors over which the company has no control. A successful organization builds on its strengths. overcomes its weakness. identifies new opportunities, and protects against external threats.

Answer 9

Analysis of organisational environment

Question 10

Defining targets to meet the company’s short-term and long-term objectives. Example, 30% increase in revenue this year of a company.

Answer 10

Forming quantitative goals

Question 11

This involves setting up targets for every department so that they work in coherence with the organization.

Answer 11

Objectives in context with divisional plans

Question 12

This is done to estimate the degree of variation between the actual and the standard performance of an organization.

Answer 12

Performance analysis

Question 13

This is the final step of strategy formulation. It involves evaluation of the alternatives and selection of the best strategy amongst them to be the strategy of the organization.

Answer 13

Selection of strategy

Question 14

This level concentrates on how an organization is going to grow. it defines daily actions, including the allocation of resources to deliver corporate and business level strategies.

Answer 14

Functional level strategy

Question 15

This level answers the question of how you are going to compete. if plays a role in organizations with smaller units of business, and each is considered the strategic business unit (SBU).

Answer 15

Business Level strategy

Question 16

This level outlines what you want to achieve: growth, stability. acquisition, or retrenchment. It focuses on what business you are going to enter the market.

Answer 16

Corporate level strategy

Question 17

Managers must decide not only on the most appropriate entry strategy. to foreign markets but also how they will attain competitive advantages in international markets.

Answer 17

International strategy

Question 18

aimed at new value creation is a major engine for economic growth. to succeed, viable opportunities must be recognized, and effective strategies must be formulated.

Answer 18

Entrepreneurial strategy and competitive dynamic

Question 19

organizational goal(s) that evoke(s) powerful and compelling mental images

Answer 19

Organizational vision

Question 20

Why visions fail

Answer 20

The Walk Doesn’t Match the Talk
Irrelevance
Not the Holy Grail
Too Much Focus Leads to Missed Opportunities
An Ideal Future Irreconciled with the Present

Question 21

a set of organizational goals that include the organization’s purpose, its scope of operations, and the basis of its competitive advantage.

Answer 21

Mission statement

Question 22

A set of organizational goals used to operationalize the mission statement and that are specific and cover a well-defined time frame.

Answer 22

Strategic objectives