Strategic MGT

What are the three aspects of mapping strategic groups? Multiple select question.

- identifying the most important strategic dimensions - graphing the firms in the strategic group and indicating each firm's market share - choosing two key dimensions for the horizontal and vertical axes

5 steps of stakeholder impact analysis

1. identify stakeholders 2. identify stakeholder's interests and claims 3. identify opportunities and threats 4. identify social responsibilities 5. address stakeholder concerns

upper-echelon theory

A conceptual framework that views organizational outcomes—strategic choices and performance levels—as reflections of the values of the members of the top management team.

Top-down strategic planning

A rational, data-driven strategy process through which top management attempts to program future success.

Stakeholder Strategy

An integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.

In the strategic management process, which basic principle must be defined first?

vision

In the ______ step of a stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially can have, a material effect on the company.

1st

PESTEL model

A framework that categorizes and analyzes an important set of external factors (political, economic, sociocultural, technological, ecological, and legal) that might impinge upon a firm. These factors can create both opportunities and threats for the firm.

AFI Framework

Analysis, Formulation, Implementation

Which of the following elements of the pyramid of corporate social responsibility are required by society?

Economic responsibilities Legal responsibilities

Good Strategy

Enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors. It is based on a strategic management process that consists of three elements: (1) a diagnosis of the competitive challenge; (2) a guiding policy to address the competitive challenge; and (3) a set of coherent actions to implement a firm's guiding policy.

Strategic Management Process

Method put in place by strategic leaders to formulate and implement a strategy, which can lay the foundation for a sustainable competitive advantage.

value creation

Occurs when companies with a good strategy are able to provide products or services to consumers at a price point that they can afford while keeping their costs in check, thus making a profit at the same time. Both parties benefit from this trade as each captures a part of the value created.

Strategic leaders need to consider how the following five macroeconomic factors can affect firm strategy:

Political, economic, sociocultural, technological, ecological, and legal

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry?

Reconfiguring value chains Establishing a niche Leverage existing assets

the core value statement is

Statement of principles to guide an organization as it works to achieve its vision and fulfill its mission, for both internal conduct and external interactions; it often includes explicit ethical considerations.

Which of the following statements is correct?

Strategic initiatives can be the result of top-down planning or a bottom-up process.

nonmarket strategy

Strategic leaders' activities outside market exchanges where firms sell products or provide services to influence a firm's general environment through, for example, lobbying, public relations, contributions, and litigation in ways that are favorable to the firm.

What are the approaches that can be utilized when strategizing for competitive advantage?

Strategy as planned emergence Scenario planning Strategic planning

strategy formulation

The part of the strategic management process that concerns the choice of strategy in terms of where and how to compete.

Strategy

The set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully?

What type of entry should be made? How to enter? When to enter? Who are the players?

Rank the following levels of the level-5 leadership pyramid, placing the highest level at the top.

executive effective leader competent manager contributing team member highly capable individual

economies of scale

factors that cause a producer's average cost per unit to fall as output rises