MGMT 4842 Midterm
which of the following is NOT one of the principle components of strategic significance in the PESTEL analysis?
Environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business
when companies adopt the strategy-making and strategy-executing process, it requires they start by
developing a strategic vision, mission and values
Managers must chart a company's strategic course by
developing a thorough understanding of the company's external and internal environment
Well-conceived visions are ________ and ____________ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations.
distinctive; specific
The strategy-making, strategy-executing process is shaped by
external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities
a company's business model
is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit.
Managers of every company should be willing and ready to modify the strategy because
market conditions and circumstances over time or the current strategy is clearly failing
Strategy-making is
more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives
In crafting a company's strategy, managers
need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.
A company's strategic plan:
outlines the competitive moves and approaches to be used in achieving the desired business results.
The faster a company's business environment is changing, the more critical it becomes for its managers to _______________
pay attention to early warnings of future change and be willing to experiment to establish a market position in the future
Driving forces analysis has
practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead
a company achieves a competitive advantage when it
provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.
A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions, so the firm can
shift the competitive battle in favor of the firm by altering the uderlying facotrs driving the five forces
What makes the marketplace a competitive battlefield is
the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals.
The most powerful and widely used conceptual tool for diagnosing the principle competitive pressures in a market is
the five forces framework
Why should long-run objectives take precedence over short-run objectives?
the focus is placed on improving performance in the near term.
which of the following in NOT one of the five force of competitive pressures?
the power and influence of social/ demographic trends
A company's realized strategy evolves from one version to the next due to:
the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.
A company's mission statement typically addresses which of the following questions?
who are we and what do we do
It is normal for a company's strategy to end up being
a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions
A company's strategic vision concerns
a company's directional path and future product-customer-market-technology focus.
The difference between the concept of a company mission statement and the concept of a strategic vision is that
a mission statement typically concerns a company's purpose and its present business scope, whereas the principle concern of a strategic vision is a company's aspirations for its future
______ is the set of actions that its managers take to outperform the company's competitors and achieve superior profitability.
A Strategy
Every strategy needs: A) a distinctive element that attracts customers and produces a competitive edge. B) to include similar characteristics to rival company strategies. C) to pursue conservative growth built on historical strengths. D) to employ diverse and sundry operating practices for producing greater control over sales growth targets. E) to mimic the plans of the industry's most successful companies.
A) a distinctive element that attracts customers and produces a competitive edge.
Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in:
An emergent Strategy
the "driving forces" in an industry
are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.
Winning a sustainable competitive edge over competitors does NOT hinge on which of the following?
building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost
Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves
building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate, or weak); and (3) determining whether the collective impact of the five forces is conductive to earning attractive profits in the industry.
