MGT- Chapter 5

A well-developed mission statement will:

be a short, direct statement for guiding the firm

Besides keeping the mission statement short, simple and specific, the statement must be utilized effectively by every member of the company, which requires the statement to be ____

applicable

A firm's ___ statement is a brief statement that summarizes how and where the firm will compete

mission

it is necessary that the mission statement be so _____ that it clearly tells every employee what not to do

specific

Implementing a(n) ______ is about fit and alignment within the business

strategy

A(n) _____ ______ ______ is a set of advantages that provides a firm with the opportunity to make money where other businesses cannot easily cope that firm's advantages

sustainable competitive advantage

If the customer is willing to pay extra because of the unique resources and/or capabilities, then it is considered _____

valuable

What is a set of advantages that provides a firm with the opportunity to make money where other businesses cannot easily copy it's advantages?

sustainable competitive advantage

What is a brief statement that summarizes how and where the firm will compete?

mission statement

Which step in the process of identifying a SCA involves evaluating the competitiveness of unique resources and capabilities

step 3

If the mission statement is so clear that it tells everyone exactly what the firm does and by definition what the firm does not do,which key characteristic of its development does it satisfy?

keep it specific

measurable

metrics for every part of the statement can be developed.

The ____ is the foundation on which the firm's _____ is built

mission; strategy

How is the durability of a new firm's unique resource or capability evaluated by the entrepreneur?

by analyzing whether the competitors of the firm would actually try to match the firm

For the missions statement of a business to be utilized effectively the founder must make it ____ to every employee with in the company

directly applicable

The evaluation of the ___ of a new business's competitive advantage is done by the entrepreneur by estimation the amount of time it would take for their business competitor to match the firm in a particular area

durability

Which of the following are key characteristics that should drive the new-business owner in developing the mission statement?

be specific keep it short keep it applicable keep it simple

List the steps in identifying a sustainable competitive advantage for a business in the order starting from step one to step three

1) develop a list of assets and capabilities of ones business 2) break the list of assets and capabilities into 2 groups: standard and unique 3) evaluate the unique resources/capabilities of one's business

Which of the following statements are true regarding the rarity of a resource?

Judgements about how rare a resource may be are qualitative. If a resource is rare, it is considered unique A resource can be considered rare if it is matched by one competitor

which of the following are examples of the impact of the mission statement?

The mission may impact how broas a geographic range the firm will serve. The mission will impact the major ways in which the firm will compete. The mission will impact the market in which the firm will compete.

what is the first step in identifying a sustainable competitive advantage?

develop a list of assets and capabilities

When developing a mission statement, the new business founder should keep the statement short, simple, specific and applicable. the mission statement should also:

establish measurable goals

simple

everyone in the company should be able to learn and understand the mission

True or False: as a business grows, it gets progressively less difficult to change its direction

false

Implementing a strategy is about

fit within the business alignment within the business

specific

the statement clearly tells everyone what the company does

short

the statement should be able to fit on a coffee mug

True or false: before the founders can start building their new business, they must be clear about where and how they will compete.

true

For every resource and capability that an entrepreneur determines to be indeed rare, the entrepreneur should initially evaluate the ____

Market for a close substitute

In order to make the mission statement understandable and memorable, it is essential that the statement be kept ____

short

To ensure that every employee can understand the mission statement, the new business owner must keep the statement_____

simple

The key to the ability to communicate a mission easily is that the statement be:

simple direct appropriate

In order for the mission statement to be short, simple, and applicable, the mission statement must be ______

specific

If a resource is matched by more that one competitor, then it is not rare and is simply the _____ expectation in the industry

standard

if a resource is matched by more than one competitor, then it is not rare and is simply the ___ expectation in the industry

standard

Step 2 of the process of identifying a sustainable competitive advantage involves splitting the list of assets into which of the following 2 catagories?

standard assets unique assets

which step involves developing a complete list of tangible and intangible assets?

step 1

Which step involves splitting the list of tangible and intangible assets into standard and unique assets?

step 2

The firm's ____ is how the firm plans to use the competitive advantage of the business to accomplish its mission

strategy

Applicable

the statement should be able to guide every individual in the company

What are the characteristics of a substitute that an entrepreneur should evaluate for every resource and capability of his or her business?

the substitute is evaluated based on it similarity to the entrepreneur's unique resource and capability. The substitute satisfies the same basic need that is satisfied by their product or service

Along with being rare, durable, and not easily substituted, the resource must also be _____ which means the customer is willing to pay extra because of the uniqueness

valuable

As a business grows, the degree of difficulty in changing direction _____

increases progressively