Strategy Module 4 - Business Strategies and the Strategic Planning Process

Question 1

What is a business strategy and what question does it address?

Answer 1

A business strategy builds a competitive focus in one line of a business and addresses the question, “how do we win in this market?”

Question 2

What is an intended strategy?

Answer 2

The agreed-upon strategy arrived at through the formal planning process.

Question 3

What is an emergent strategy?

Answer 3

A strategy created from new ideas and conditions.

Question 4

What is a discarded strategy?

Answer 4

A strategy that deemed inappropriate due to changing circumstances.

Question 5

What is a realized strategy?

Answer 5

The implemented plan, or “what actually happened.”

Question 6

What does the strategic planning process define?

Answer 6

The organization’s future direction, permanence targets, and approaches to achieve the targets in a formal written statement.

Question 7

What are the steps of the strategic planning process?

Answer 7

1. Establish the mission, vision, and values
2. Develop objectives
3. Analyze the external environment
4. Identify the competitive advantage
5. Determine the competitive position
6. Implement the strategy
7. Evaluate the performance

Question 8

What is a mission statement?

Answer 8

An articulation of a view of a realistic, credible, and attractive future for the organization that clearly states the reason for the existence of the business and differentiates the organization from the competition.

Question 9

What is a vision statement?

Answer 9

A clear compelling statement about the future that serves to unite an organization’s efforts.

Question 10

What is the purpose of a values statement?

Answer 10

1. Conveys a sense of identity for employees
2. Generates employee commitment to something greater than themselves
3. Adds to the stability of the organization as a social system
4. Serves a frame of reference for employees to make sense of organizational activities and to use a guide for appropriate behavior.

Question 11

What is the purpose of a balanced scorecard?

Answer 11

They organize objectives into four categories: financial, customer, learning and growth, and internal business process.

Question 12

What is SWOT analysis?

Answer 12

A SWOT analysis is an environmental analysis that examines the strengths and weakness of a company (the internal environment) as well as its threats and opportunities (external environment).

Question 13

What is a competitive advantage?

Answer 13

A firm’s characteristics that enable it to earn higher rates of profits than its competitors by utilizing its resources.

Question 14

What resources does an organization have at its disposal?

Answer 14

1. Tangible assets (assets that have substance and can consumed)
2. Intangible assets (assets that are not concrete, such as reputation)
3. Capabilities (the collective skills, abilities, and expertise, and core competencies)

Question 15

What is a value proposition?

Answer 15

A statement of benefits your products or services provide in the marketplace.

Question 16

What are the five competitive strategies in Porter’s Model?

Answer 16

1. Low-cost leader strategy
2. Broad differentiation strategy
3. Best-cost provider strategy
4. Focused, or market-niche, strategy based on differentiation
5. Focused, or market-niche, strategy based on lower cost

Question 17

What is the low-cost leader strategy? Give an example.

Answer 17

Overall low-cost provider of a product/service that appeals to a broad range of customers.

Example: Sam’s Club or Walmart

Question 18

What is the broad differentiation strategy? Give an example.

Answer 18

Differentiate the product offerings from rivals’ that appeal to a broad range buyers.

Example: Whole Foods

Question 19

What is the best-cost provider strategy? Give an example.

Answer 19

More value for the money by emphasizing both low cost and upscale difference.

Example: Ikea

Question 20

What is the focus, or market-niche, strategy based on differentiation? Give an example.

Answer 20

Targets a niche market based on differentiation and likely provides a very high end product that only a small segment would desire.

Example: Rolls-Royce

Question 21

What is the focus, or market-niche, strategy based on lower cost? Give an example.

Answer 21

Targets a niche market based on a lower cost.

Example: Maybelline

Question 22

What is strategic implementation?

Answer 22

The operation planning process consisting of programs, budgets, and procedures.

Question 23

In terms of strategic implementation, what is a budget?

Answer 23

The financial resources need to accomplish the goal.

Question 24

in terms of strategic implementation, what is a program?

Answer 24

The steps or activities necessary to accomplish a goal.

Question 25

In terms of strategic implementation, what is a procedure?

Answer 25

The steps required to get a job done.

Question 26

What are some indicators when evaluating performance?

Answer 26

Financial, Operational, Other

Question 27

What are some errors in strategic planning?

Answer 27

Not involving key people.

Failing to use the plan developed in the strategic planning process as a guide.

Failing to align incentives, other HR programs and policies to the achievement of strategy.

Question 28

What is governance?

Answer 28

Governance establishes who has power, who makes decisions, who is accountable for carrying out those decisions, and how others are heard.

Question 29

What does governance do?

Answer 29

Ensures decisions are made in line with the organization’s policies, guidelines, philosophies and cultural norms.

Guards against conflicts of interest.

Ensures everyone has access to due process.