MGMT 449 Chapter 1

Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10 years, has had moderate sales in a crowded market while its rivals manufacture and market drugs having similar efficacy and safety precautions, but with superior market share. This particular pharmaceutical company's greatest challenge is to increase prescriptions of their drugs by French doctors. What would be the most effective strategy for Sanofi to improve sales performance in its existing market? Relocating all the existing drug manufacturing facilities to developing countries to reduce operational costs Modifying marketing communication to increase brand familiarity within key physician segments Employing hiring plans that aim at acquiring drug designers from rival companies Exiting the market and entering a new unexplored geographical location

Modifying marketing communication to increase brand familiarity within key physician segments

In the course of crafting a strategy, managers typically do not Abandon certain strategy elements that have grown stale or become obsolete. Revamp the current strategy in response to the fresh strategic maneuvers of rival firms. Take proactive actions to improve this or that piece of the strategy. Share the strategy publicly to obtain additional customer and shareholder support.

Share the strategy publicly to obtain additional customer and shareholder support.

A company's strategy is not concerned with management's choices about how to Attract and please customers. Stake out the same market position as successful rival companies. Grow the business. Compete successfully.

Stake out the same market position as successful rival companies.

A company's strategy stands a better chance of succeeding when It is developed through a collaborative process involving all managers and staff from all levels of the organization. Managers employ conservative strategic moves based on past experience and form an underlying basis of control. It is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. Managers copy the strategic moves of successful companies in its industry.

It is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

A winning strategy must pass which three tests? The dominant market test, the sustainable advantage test, and the profit test The fit test, the competitive advantage test, and the performance test The sustainable performance test, the fit test, and the profit test The performance test, the dominant market test, and the fit test

The fit test, the competitive advantage test, and the performance test

A company's realized strategy evolves from one version to the next due to Changing management direction because of understanding several appealing strategy alternatives. 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. Ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). Pressures from shareholders to boost profit margins and pay higher dividends.

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.

Managers of all types of business organizations must develop a clear answer for which of the following questions? What approaches do we need to take in order to gain a competitive advantage in the marketplace? What is the set of actions that we need to take to outperform competitors and achieve superior profitability? Where are we now? Where do we go from here?

What is the set of actions that we need to take to outperform competitors and achieve superior profitability?

Managers of all types of business organizations must develop a clear answer for which of the following questions? What is the set of actions that we need to take to outperform competitors and achieve superior profitability? What approaches do we need to take in order to gain a competitive advantage in the marketplace? Where are we now? Where do we go from here?

What is the set of actions that we need to take to outperform competitors and achieve superior profitability?

Giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations is a __________ strategy. Best-cost provider Focused low-cost Focused differentiation Broad differentiation

Best-cost provider

The most significant signs of a well-managed company are The eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. Aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. Good strategy-making combined with good strategy execution. A visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies.

Good strategy-making combined with good strategy execution.