Capstone Chapters 1-5
Winning sustainable competitive advantage over competitors generally hinges on one of the following:
(i) having a distinctive competitive product offering (ii) building competitively valuable expertise and capabilities not readily matched, and offering a distinctive product offering (iii) building expertise, know-how, and specialized capabilities that have been perfected over a long period of time (iv) having "hard to beat" capabilities and impressive product innovation
Which of the following are characteristics of an effectively worded strategic vision statement?
graphic, directional, and focused
Which of the following is the result of a well-conceived and communicated strategic vision?
(i) senior executives solidify their own view of the firms longterm direction (ii) the risk of rudderless decision making is minimized (iii) organizational members support the changes internally that will help make the vision a reality (iv) assists the organization in preparing for the future
What are the two components of a vision? What is identified in each of the components?
1) Core Ideology (i) Core Values (ii) Purpose 2) Envisioned Future (i) Mission (ii) Goals
What two attributes must a BOD demonstrate when evaluating success in a company's strategy execution?
1) Skeptical 2) Obbjective
What are the two principal determinants of competitive advantage?
1) Superior customer value proposition f ( >V, <P)/Customer 2) Sustainable financial performance - >expectation
Setting goals is an important part of identifying Mission. Name four commonly used approaches to defining them.
1) Target 2) Common Enemy 3) Role Model 4) Transformation
An effective strategy must pass three component tests. Name the components?
1) The Fit Test: How well does the strategy fit the company's situation? 2) The Competitive Advantage Test: Can the strategy help the company achieve a sustainable competitive advantage? 3) The Performance Test: Is the strategy producing good company performance?
Strategy creation seeks to answer three very simple questions. What are they?
1) What is our present situation? 2) Where do we want to go from here? 3) How are we going to get there?
Which of the following statements about a company's strategy is true?
A company's strategy is typically a blend of proactive and reactive strategy elements
Which of the following is not one of the basic reasons that a company's strategy evolves over time? A. the need on the part of the company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy C. an ongoing need to abandon those strategy features that are no longer working well D. the need to respond to the actions and competitive moves of rivals E. the need to keep strategy in step with changing market conditions and changing customer needs and expectations
A. the need on the part of the company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture
What is the most widely used tool to measure and track the success of strategy execution?
Balanced Scorecard
Which one of the following is not an accurate attribute of an organization's strategic vision? A. Providing a panoramic view of "where we are going" B. Outlining how the company intends to implement and execute its business model C. Pointing an organization in a particular direction and charting a strategic path for it to follow D. Helping mold an organization's character and identity E. Describing the company's future product-market-customer-technology focus
B. Outlining how the company intends to implement and execute its business model
Which of the following tasks of the strategy-making, strategy-execution managerial process make up a company's strategic plan?
Developing a strategic vision, mission, and core values
Which of the following is an integral part of the managerial process of crafting and executing strategy?
Setting objectives and using them as yardsticks for measuring the company's performance and progress
Which is not one of the five typical sources of competitive pressures?
The power and influence of industry driving forces
Which of the following are common shortcomings of company vision statements?
Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superltives
With respect to differentiating yourself, what is the single greatest question and challenge you must deal with?
What should we do and what should we not do?
A company's mission statement typically addresses which of the following questions?
Who are we and what do we do?
Every strategy needs:
a distinctive element that attracts customers and produces competitive edge.
The difference between the concept of a company mission statement and the concept of a strategic vision is that:
a mission statement typically concerns a company's purpose and its present business scope (who are we and what we do and why are we here?), whereas the principal concern of a strategic vision portrays a company's aspirations for its future (where are we going?)
Corporate strategy concerns:
how to gain and sustain a competitive advantage
One of the important benefits of a well-conceived and well-stated strategic vision is to:
clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction
Crafting a effective strategy involves developing strategy elements that:
consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods
The objectives of a well-crafted strategy requires management to strive to:
develop lasting success that can support long term growth.
Well conceived visions are ___ and ___ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations
distinctive and specific
The strategy-making, strategy executing process:
embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities
Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving sustainable competitive advantage:
focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the specials needs and tastes of buyers comprising the niche.
Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of:
inspiring company personnel unite behind managerial efforts to get the company moving in the intended direction
A company's business model:
is management's blueprint for how it will generate revenues sufficient to cover costs and yield the targeted earnings
Market maneuvering among industry rivals:
is ongoing an dynamic, with moves an countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers
A company's strategies stand 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 its rivals.
A company achieves a competitive advantage when:
it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.
A company's strategic plan:
lays out its future direction and business purpose, performance targets and strategy
What separates a powerful strategy from a run of the mill ineffective one:
management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage.
A company's strategy concerns:
management's action plan for outperforming competitors and achieving superior profitability.
A company's strategic vision describes:
management's aspirations for the future and delineates the company's strategic course and long-term direction
Well-stated objectives are:
quantifiable or measurable, and contain deadlines for achievement
The customer value proposition lays out the company's approach to:
satisfying buyer wants and needs at a price customers will consider a good value.
An engaging and convincing strategic vision:
should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction
The difference between a company's strategy and a company's business model is that:
strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to generate revenues sufficient to cover costs and realize a profit
A company's values or core values concern:
the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission
A company's strategy is a "work in progress" and evolves over time because of:
the ongoing need of company managers to react and respond to changing market and competitive conditions
