Stragetic Management Ch 1 - 5
Leading the drive for good strategy execution and operating excellence calls upon managers to
Practice MBWA, put constructive pressure on the organization to achieve good results and display ethical integrity and spearhead social responsibility initiatives
The major avenues for achieving a cost advantage over rivals include
Eliminating non-essential cost-producing activities and creating a cost-conscious culture
Functional strategies
add detail to the overall business strategy and specify what resources and organizational capabilities are needed to put the business strategy into action.
Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?
Engaging the services of staffing firms to maintain the company's personnel data
A Balanced Scorecard for measuring company performance
Entails striking a balance between financial objectives and strategic objectives
A company achieves sustainable competitive advantage when
an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors
Company objectives
need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.
Company objective
need to be broken down into performance targets for each of its seperate businesses, product lines, functional departments and individual work units
A stragetegy to be the industry's overall lowe-cost provider tends to be more appealing than a differentiation or focus strategy when
the offerings of rival firms are essentially identical standardized, commodity-like products
A company's strategy is a "work in progress" and evolves over time because of
the ongoing need of a company managers to react and respong to changing industry and competitive conditions
A company's mission statement typically addresses which of the following questions
"Who are we and what do we do?" and "why are we here"
A company's business model
(1) specifies a customer value proposition, (2) develops a profit formula, and (3) identifies key resources and processes required to create and deliver customer value
Changing circustance and on going managerial effort to improve stratey
...
Which of the following statements about a company's realized strategy is true
A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.
Which of the following statements about a company's strategy is true?
A strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance
The primary role of a functional strategy is to
Add detail to the company's business-level strategy and specify what resources are needed to put the strategy into action
Which one of the following is not an integral part of the managerial process of crafting and executing strategy?
Choosing a strategic intent
Which one of the following is not a characteristic of an effectively-worded strategic vision statement (see Table 2.2)?
Concrete and unambiguous (leaves no doubt as to what the company is trying to accomplish for shareholders)
A strategic vision for a company
Describes "where we are going" by delineating the course and direction management has charted for the company's future product-customer-market-technology focus.
Approaches to achieving a sustainable competitive advantage include which of the following?
Developing unmatched resource strengths and competitive capabilities. Focusing on a narrow market niche within an industry. Strategies keyed to creating a differentiation-based advantage. Strategies keyed to developing a cost-based advantage. ***All of these.
Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?
Directing senior executives as to what the company's long-term direction, objectives, business model, and strategy should be and, further, closely supervising senior executives in their efforts to implement and execute the strategy
Which one of the following questions can be used to distinguish a winning strategy from a so-so or losing strategy?
Has the strategy produced good financial performance
Which of the following is a good example of a manufacturing-related key success factor?
High labor productivity (especially if the production process has high labor content)
Which one of the following is not related to actions and approaches that comprise a company's strategy
How to prove to shareholders that the company's business model is viable
Which of the following questions ought to be used to distinguish a winning strategy from a mediocre or losing strategy?
Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?
According to both the text discussion and the summary in Table 2.3, which of the following is not a common shortcoming of company vision statements?
Lacking in analysis—based more on managerial emotion and excessive ambition than on what is realistically achievable
Which of the following is not an element of a company's business strategy?
Management actions to revise the company's financial and strategic performance targets
A company's competitive strategy deals with
Management's game plan for securing a competitive advantage relative to rivals
Which of the following statements about a company's strategy is true?
Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: Where are we now? Where do we want to go? How are we going to get there?
The generic types of competitive strategies include
Overall low-cost provider, broad differentiation, focused low-cost and focused differentiation
A company's business model
Relates to the principle business components that will allow the business to generate revenues sufficient to cover costs and produce a profit
A focused low-cost strategy seeks to achieve competitive advantage by
Serving buyers in the target market niche at a lower cost and lower price than rivals
Which of the following is not one of the most frequently used strategic approaches to building competitive advantage?
Striving for a competitive edge based on bigger profit margins
Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?
The industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals and the company's proficiency in performing industry key success factors
Which of the following statements concerning Sirius XM's business model and that of over-the-air radio broadcasters (as discussed in Concepts & Connections 1.2) is false?
The profit formula for over-the-air radio broadcasters involves fixed costs associated with operating a satellite-based music delivery service
Which of the following is not a reason that industry rivals are often motivated to enter into strategic partnerships with key suppliers?
To reduce the bargaining power they face from buyers of their products
Which of the following is not one of the questions that needs to be answered in thinking strategically about a company's external environment?
What are the company's competitively valuable resources and capabilities that can be used to form the foundation of its competitive approach
Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on
Whether buyer demand is strong or declining
Which of the following is not a factor in determining whether the suppliers to an industry are a source of strong, moderate, or weak competitive pressures?
Whether the industry supply chain is global or mostly national, whether suppliers have a wide or narrow product line, and whether industry members place orders frequently or infrequently with suppliers
It is normal for a company's strategy to end up being
a blend of deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.
A company's strategic vision concerns
a cmpany's path and future product -customer -market- technology focus
The difference between a competence and a core competene is that
a competence represents proficient in preforming an internal acitivity whereas a core competence is proficiently performed internal acitivity that is central to a company strategy and compettitiveness
The task of crafting a strategy is
a job for a company's whole management team?senior executives plus the managers of business units, operating divisions, functional departments, manufacturing plants, and sales districts (as per the strategy-making hierarchy shown in Figure 2.2).
Which of the following is not one of the five generic types of competitive strategy
a market share cominator strategy
The difference between a company's mission statement and the concept of a strategic vision is that
a mission statement typically concerns an enterprise's present business scope and purpose—"who we are, what we do, and why we are here"—whereas the focus of a strategic vision is on the direction the company is headed and what its future product-customer-market-technology focus will be.
Strategies that yield sustainable competitive advantage is important because
a strategy that yields a competitive advantage over rivals and creates an enduring demand for a company's products or services is the key to a company's ability to earn ongoing above-average profits
A creative distincive strategy that delivers a sustainable competive advantage is important because
a strategy that yields a competitive advantge over rivals is a company's most reliable means of achieving above average profitability and financial performance
A company achieve sustainable competive advantage when
a suffiently large number o fbuyers have a lasting preference for is prouctss or serives as compared to the offering of competitiors
What separates comany that make sincere effort to be good corporate citizens from companies that are content to do only what is legally required of them
are company leaders who beieve that making profits is not good enough and that performance should ale incle social and environmentla metrics
What separates companies that make a sincere effort to be good corporate citizens from companies that are content to do only what is legally required of them
are company leaders who believe that making a profit is not good enough and that performance should also include social and environmental metrics.
The key success factors in a industry
are the strategy elements, intangible assets, and competive capabilities that most affect industry emembers ablitlties to prosper in the marketplace
A resource-based strategy
attempts to exploit resources in a manner that offers value to customers in ways rivals are unable to match
Strategy-making is
more of a collaborative group effort that involves managers and key employees throughout the company.
A company's needs financial objectives
because without adequate profitability and financal strength the company's ultimate survival is jeapardized
Crafting a strategy involves
blending deliberate/planned intiatives with emergenty /unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace
As per Figure 2.2, the strategy-making hierarchy in a single business company consists of
business strategy, functional area strategies, and operating strategies.
Broad difentiation strategies generally work best in market circumstances where
buyer needs and preferences are too diverse to be fully satisfied by standardized products
In answering the question, "How are we going to get there?" management must have deliberate plans for addressing such issues as
changing market conditions, development of internal capabilities and competencies, and allocation of financial resources.
A company's strategy consist of
competitive most and apporaches that managers have developed to grow the business, attract and please customers, conduct operations and achieve targeted objectives
A viable business model
must have a tight fit with organizational capabilities and generate revenues sufficient to cover costs and deliver good profitability
A company's value chain
consists of two broad categories of acitivities: the priamary activities that create customer value and the requisite support activities that facilitate and enhance the performance of primaryactivities
A company's objectives
convert the strategic vision into specific performance targets—well-stated objectives are quantifiable, or measurable, and contain a deadline for achievement.
A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers
is conducive to industry members have low cost
Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to
decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.
While there are many routes to competitive advantage they all involve
delivering superiour value to buyers in ways rivals cannot readily match
Which one of the following is not one of the five stage of strategic managemtn process
developing a profitable business model
Easy to copy differentiating features
do not offer the promise of sustainable competitive advantages
The most important aspect of a company's business strategy
is its apporach to competing in the marketplac
The most important aspect of a company's business strategy
is its approach to competing in the marketplace.
A balanced scorecard for measuring company performance
entails setting both financial and strategic objectives and putting balanced emphasis on their achievement
Successfully leading the effort ot instill a spirit of high achievement into a comany culutre and put constructive pressure on the organization to achieve good results
entails such actions as treating employees with dignity and respect, celebrating individual group, and company successes and setting stretch objectives
A Balanced Scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because
financial performance measures are lagging indicators that reflect the results of pas decisions and organizational activities whereas strategic performance measures are leading indicators of company's future financial performance
A winning strategy is one that
fits the company's internal and external situation, builds sustainable competitive advantage and improves company performance
A winning strategy is one that
fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance
A strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage
is a company's most reliable ticket to above-average profitability
The three elments of a company's business model are
its customer value proposition, the profit formula, and an identification of key resources and processes necessary to create and deliver value to customers
Leading and managing the strategy process calls upon managers to
making sure the company has a good strategic plan, staying on top of what is happening, putting constructive pressure on the organization to achieve good results, pushing corrective actions, leading the development of stronger capabilities, and displaying ethical integrity and spearheading social responsibility initiatives.
A company's strategic plan consists of
management's vision mapping out where a company is headed, the company's financial and strategic objectives, and management's strategy to achieve the objectives and move the company along the chosen strategic path.
In identifying an industry's dominant economic features, there is a need to consider such things as
market size and growth rate, the number of buyers, the scope of competitive rivalry, the number of rivals, demand-supply conditions, product innovation, the presence of scale economies and/or learning/experience curve effects, and the pace of technological change.
Company strategies evolve because
of the ongoing need to respond to changing market conditions, the fresh moves of competitors, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy, and any evidence that indicates the strategy is not working well.
The market opprotunities most relevant to a particular comany are those that
offer the best growth and profitability
The obligatoins of an investor-owned comany's board of directors in the strategy-making, strategy-executing process include
overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills
SWOT analysis
providers a good overview of a company's overall situation
Which of the following is generally not considered as a barrier to entry
rapid market growth
Strategic objectives
relate to strenghening a company's overall market standing and competive vitality
A company's business model
relates to the principle business componetns that will aloow the business to generate revenues ample to cover costs and product a profit
Which of the following is not part of a company's macroenvironment?
the company's resource strengths, resource weaknesses and competitive capabilities
Establishing and achieving strategic objectives merits very high priority on management's agenda because
strategic outcomes are leading indicators of a company's future financial performance and business prospects.
The competitive moves and business approaches a company's management are using grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance is referred to as its
strategy
Which of the following is not frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage
striving to be more profitable than rivals and aiming for a competitive edge base on bigger profit margins
Based on both the chapter discussion and the summary in Figure 3.4, competitive pressures stemming from substitute products are weaker when
substitutes are higher-priced, buyers don't believe substitute products have equal or better features, and buyers' costs of switching to substitutes are relatively high.
For a best-cost provider strategy to be successful, a company must have
the capability to incorporate upscale attributes at lower cost than rivals whos products have similar upscale attributes
One imporatn indicator of how well a company's present strategy is working is whether
the company is achieving its financial and strategic objective and whether it is an avove-aveage industry performer
Operating strategies concern
the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and specific operating activities (the management of specific brands, supply chain?related activities, and website sales and operations).
What sets focused (or market niche) strategies apart from low-cost leadership and broad diffentiation strategies is
their concentrated attention on a narrow piece of the overall market
The option for remedying a supplier related cost disadvantage include
trying to negotiate more favorable prices with suppliers and switching lower priced substitue inputs
Whether buyer bargaining power powes a strong or weak source of competitive pressure on indust members depends in part on
wheather buyer demands is strong or declining
Which one of the following increases the competitive pressures associated with the threat of entry
when newcomers can expect to earn attative profits
Whether the buyers of an industry's product have strong or weak bargaining leverage over the terms and conditions of sale depends on
whether buyers purchase in relatively large or small quantities, whether the costs of switching to competing brands or to substitute products are high or low, and how well informed buyers are about sellers' prices, products, and costs.
One of the most telling signs of wheter a company's market position is strong or precarious is
whether its prices and costs are competitive with those of key rivals
