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Strategic Management Exam 1 With Complete Solutions Latest Update
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Strategic Management Exam 1 With Complete Solutions Latest Update
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Strategic Management Exam 1 With CompleteSolutions Latest Update
Performance - correct answers - through value creation
-- creating value (does not happen on accident)
-- capturing value
- honest tea example
Strategic Management - correct answers - process by which managers integrate the firms functions into streams and
patterns of action designed to fit the constraints and demands of the market
- the result is value for stakeholders*, customers, and owners
Strategy definitions, Over Time - correct answers - A. Chandler (1962):
"The definition of the long-run goals and objectives of an enterprise, and the adoption of course of action and the
allocation of resources necessary for carrying out these goals."
- K. Andrews (1897):
"Strategy is the pattern of objectives, purposes or goals and the major policies and plans for achieving these goals,
stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be."
- C. Hofer & D. Schendel (1978)
"The fundamental pattern of present and planned resource deployments and environmental interactions that indicate
how the organization will achieve its objectives."
- K. Ohmae
"What business strategy is all about is, in a word, competitive advantage... the sole purpose of strategic planning is to
enable a company to gain, as efficiently as possible, a sustainable edge over its competitors."
,- Hoskisson, Hitt, & Ireland (2008)
"An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain
competitive advantage."
- D. Gilbert, E. Hartman, J. Mauriel, & E. Freeman (1988)
"Strategy is a set of important decisions derived from a systematic decision making process, conducted at the highest
levels of the organization."
Strategic Management... What is the common thread running though these definitions? - correct answers CREATING
VALUE
EXAMPLES - correct answers Southwest Airlines
- originally called air southwest
- originated from Love Field, Dallas
- drinks were called love potions
- peanuts were called love bits
- frequent flyer program
- first come first serve seating--ticketless
- positive attitudes
- none of it happened by accident
- success like this reflects a strategy that is connected throughout the various parts of the firm and that comes to life
through the daily attitudes, actions, and behaviors of the people
- strategy that is well conceived and well executed
- a strategy that delivers strong results
The Coca-coal Company
- owns many other beverage companies
- international
- powerful brand
- agressive marketing
,- massive distribution
Definition of Strategic Management - correct answers - framework, or a model with four components
1) analyzing the environment
2) integrating the firms activities
3) for learning, and adapting to change
4) for the creation of value in the present and the future
- framework that can be used in every type of organization
- framework, that when applied, becomes the process by which managers integrate the firm's functions into streams
and patterns of action designed to identify and fit the contours of the environment
- at its core, * a company's manifest plan of action for the ongoing creation and appropriation of value
Definiton Confusion? - correct answers At the core, strategy is the companies plan for action:
- ongoing creation of value
- short-term and long-term process
- reflects realities of the environment
- push for innovation, adaption and change
- management and employees need to be engaged
- complex and multi-faceted
Definitions of strategic management (Mintzberg) - correct answers - Five P's for strategy
-- plan
-- ploy
-- pattern
-- position
-- perspective
, - good strategic management must incorporate all five of these facets
- never forever that the end result of strategy is action
Plan - correct answers - forward looking and visionary process
- strategies are as much ploy as they are plans
Ploy - correct answers - illusion of strength for competitive advantage
- article of deception used to gain an advantage over a competitor
Pattern - correct answers - careful planning
- emergent (unexpectedly, or through consistent patterns of business)
- a recipe for success which becomes a consistent pattern of action
- pattern that is seen by the customers, competitors, analysts, and journalists, and it is this pattern that is understood as
the firm's strategy
Position - correct answers - of the organization in the environment--what are the realities of the surroundings?
- position the firm within an attractive and manageable environment
- positioning may result from an intentional plan or emerge from a natural pattern
- many firms seek positions that allow them to avoid competition
Perspective - correct answers - firms view about what they do and how they do it (engineering or marketing perspective)
- firms differ in how they view the world and their place within it
- some firms are aggressive while others are much less so
Picture - correct answers - all 5 p's are part what go into make competitive advantage (picture on slide 14 of strat mgmt
introduction)
What else is needed? - correct answers - knowledge of the changing environment
- skills and resources to implement goals
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