MIE 480 Exam 1 Questions & Answers 100% Correct!

What is "Strategy"? - ANSWERSStrategy is a set of actions to achieve company objectives. It's a high-level plan on how to achieve objectives (often related to profitability). Company profitability is significantly determined by the: - ANSWERSIndustry structure; Firm competitive advantage (where we stand relative to other firms) Strategic choice: - ANSWERSA strategic choice has a basic structure - 1. Identify the objective or goal. 2. Formulate the alternatives. 3. Decide what considerations are relevant (diagnostics): A) External environment, B) Industry factors, C) Internal capabilities 4. Make a decision. 5. Formulate a plan to manage/mitigate risk. Why have a strategy? - ANSWERS1. Coordinate (Communication is costly) 2. Incentivize (Undoing people's work is costly) 3. Speed decisions (Options can be costly) Strategy vs. Tactics - ANSWERSStrategy is an overall "big" plan. Tactics is a set of small steps to support this plan. Corporate Strategy - ANSWERSDefines industries and markets in which the firm competes; where we compete (markets and industries) Business Strategy - ANSWERSHow the firm competes within a particular industry or market; how we compete in any given market / industry Demographic Trends (Environmental Analysis) - ANSWERSIssues of age, gender, race Macroeconomic Impacts (Environmental Analysis) - ANSWERSEconomic issues (GDP, inflation, income), recessions Technological Developments (Environmental Analysis) - ANSWERSNew technologies Socio-Cultural Influences (Environmental Analysis) - ANSWERSShifts in culture, trends, tastes, status Political-Legal Pressures (Environmental Analysis) - ANSWERSChanges in the law or regulatory environment Global Trade Issues (Environmental Analysis) - ANSWERSTrade, tariff or other global market issues Industry - ANSWERSDefine based on similar products / services with common supplie