MGMT 490 Ch. 1

Crafting a deliberate strategy involves developing strategy elements that

consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

A seldom used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage is

copying the attributes of a popular product or service.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because

crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

What separates a powerful strategy from a run-of-the-mill or ineffective one?

management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals and produces sustainable competitive advantage

A "repeatedly evolving strategy" best applies to a

mobile phone company, established in a saturated market, that plans its research and development activities to allow for quarterly releases of new products that match or overtake features of rivals' mobile phones.

A salsa manufacturing company that enjoys the lest bargaining power with its suppliers would most likely be

offering high-cost specialized salsas that could be consumed only by customers with specific food allergies.

A deliberate strategy is best exemplified by a(n)

popular downtown theater that has been staging plays and showing films decides to begin booking rock and roll acts.

The customer value proposition lays out the company's approach to

satisfying customer wants and needs at a price that customers will consider a good value.

In evaluating proposed or existing strategies managers should

scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance.

In the course of crafting a strategy, managers typically do not

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

A company's strategy consists of the action plan management takes to

stake out a unique market position and achieve superior profitability.

To improve performance, there are many different avenues for outcompeting rivals such as

strengthening competitiveness by pursuing strategic alliances and collaborative partnerships.

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.

_______ is the set of actions that its managers take to outperform the company's competitors and achieve superior profitability.

A strategy

Amy's Drive-Thru, a fast food facility, offers healthy, sustainably grown veggie and vegan fast food at higher prices than its competitors in the market and has a drive-through and indoor seated casual dining operation. What strategy is Amy's Drive-Thru using to gain competitive advantage?

a differentiation strategy

The consumer goods companies listed below all pursue the same business model with the exception of

Acer laptops.

It is incorrect to say that a company's strategy evolves due to

a need to promote stability and retain the status quo.

To distinguish a winning strategy from a mediocre or losing strategy, a strategic manager should ask which question?

How well does the strategy fit the company's situation?

To test the merits of a firm's strategy and distinguish it as a winning strategy, which major question needs to be addressed?

Is the strategy helping the company achieve a sustainable competitive advantage, and is it resulting in better company performance?

Ben Weprin is founder and CEO of Graduate Hotel, a growing chain of boutique hotels situated near college campuses and designed to cater to the nostalgia and local boosterism that are part of the culture of university towns. (Room keys are imprinted with the names of famous alumni, and public spaces are decorated with historical photos of campus life, vintage art and other collegiate artifacts.) Mr. Weprin and his company are trying to create a brand that will find year-round business by catering to more than just alumni coming back for once-a-year football weekends or 10-year anniversaries of their graduating classes. What is the major question that Mr. Weprin and his team need to ask about his company's strategy?

What must managers do, and do well, to make a company a winner in the marketplace?

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.

Changing circumstances and ongoing managerial efforts to improve the strategy

account for why a company's strategy evolves over time.

A search engine giant specializes in all types of search items; provides a free translation feature for 80 different languages; stores all passwords for commonly visited sites in encrypted form; allows users to view ads on previously made related searches; provides suggestive search items to assist the user; allows users to view a collection of related web pages users might want to visit; and provides a faster load time and more accurate hits than its rivals. This search engine company uses a profit formula that primarily consists of

allowing users to view ads on previously made related searches.

Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in

an emergent strategy

Management's blueprint for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment

best describes what is meant by a company's business model.

Volta Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-generation electric vehicles. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized autonomous, self-driving electric vehicles at a lower cost than rivals. What basic strategic approach has Volta Motors decided upon?

best-cost provider

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

Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided to outsource its programming operations to an emerging market, India, to obtain cheaper labor. Since then, this social networking company has encountered criticism that has diminished its current market position and staff productivity. You have been retained by this company to develop an appropriate reactive (emergent) strategy that would begin by

cancelling the job cuts till the market situation and entry operations stabilize.

The heart and soul of a company's strategy-making effort is determining how to

come up with moves and actions that produce a durable competitive edge over rivals.

Strategy, at its essence, is about

developing lasting success that can support growth and secure the company's future over the long term.

A winning strategy is one that

fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

The pattern of actions and business approaches that would not define a company's strategy include actions to

gain sales and market share with lower prices despite increased costs.

The most significant signs of a well-managed company are

good strategy-making combined with good strategy execution.

A regional electric scooter manufacturer sells its scooter at a lower price than other manufacturers of two-wheeler scooters. What will make the product most attractive for customers?

high value

For John Sidanta, CEO and founder of Primaplast, a manufacturer of biodegradable plastic drinking straws made from recycled material, crafting and executing a strategy is a top-priority managerial task because it

is Primaplast management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance, especially in light of impending community and some food service outlets' bans on conventional plastic drinking straws.

A company's strategy stands a better chance of succeeding when

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