Strategic Management NDSU test 1 Questions and Answers
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Course
NDSU
Institution
NDSU
Strategic Management NDSU test 1 Questions and Answers
Strategic Management Studies
- environment
- strategy
- resources
- implementation
- performance
Strategic Management
the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organ...
Strategic Management - answer the art and science of formulating, implementing,
and evaluating cross-functional decisions that enable an organization to achieve its
objectives
): Which of the following is correct about the industrial organization (I/O) model?
a. The external environment and industry forces determines firm performance.
b. Selecting the most attractive industry in which to compete is a strategic prescription
of the I/O model.
c. The I/O model assumes that resources are highly mobile across firms.
d. All of the above. - answer d. all of the above
Customers are typically considered a capital market stakeholder group. - answer
False - customers are product market
When suppliers are likely to be powerful and can impose threats on firms? Ch 2 -
answer Suppliers have differentiated products
Kathy Ireland (KI), Inc.'s founding mission "Finding solutions for family, especially busy
moms" has guided the company to diversify product lines into different product mixes,
all of which are centered around the needs of family. Which of the following best
describes the role of KI's mission in guiding its product strategy? - answer a. KI's
mission is broad enough to allow for creative growth but limited enough to exclude
some ventures.
Strategic Management Process involves the full set of: - answer - Commitments
-decisions
-actions
Which of the following is the most explicit example of threats of new entrants? - answer
a. Starbuck Coffee's profits in 2000s eroded due to the emergence of several regional
gourmet coffee providers.
In the mid 1990's, Microsoft, a major software company, had Compaq, a leading PC
company, as its major customer with a significant size of software purchase. During that
,time, Compaq was the number one PC company, and had a significant lead in PC
sales/market share over Dell and Gateway, which were much smaller PC companies
than Compaq. Although profitability was part of Microsoft's business objective, Microsoft
decided to sell its software to Dell and Gateway at much lower prices than the prices
Microsoft gave to Compaq and other PC companies. By doing so, Microsoft suffered
from lower profit margins from any software sold to Dell and Gateway. However,
because of this preferential prices from Microsoft, Dell and Gateway had cost
advantage over other competitors in the PC market and could significantly increase their
PC market share. If you were Microsoft's business consultant at the time, would you
support Microsoft - answer Ch 2 - Pest, five forces - bargaining power- Microsoft has
more options in the longer haul and has more bargaining leverage.
Strategic Management Process required to achieve: - answer -sustained competitive
advantage
-superior performance (above-average returns)
Alternative Models of Superior Performance - answer 1. Industrial Organization (I/O)
Model
2. Resource- Based Model
I/O Model of Superior Performance - answer - external environment
- attractive Industry
- strategy formulation
- assets and skills
- strategy implementation
- superior performance
External Environment - answer General, Industry, competitors
- examine the external environment
Attractive Industry - answer industry with high profitability potential
- locate an industry with a high profit potential
Strategy formulation - answer strategy linked with superior performance in the
industry
- identify a strategy fit with the industry to achieve superior performance
Assets and SKills - answer Assets and skills required to implement a chosen
strategy
- Develop or acquire assets and skills needed for the strategy implementation
Strategy Implementation - answer strategic actions linked with effective strategy
implementation
- leverage the firms strengths to implement the strategy
Superior performance - answer above- average performance
, - monitor the sustainability of the superior performance
RBV Model of Superior Performance - answer - Resources
- Capability
- Competitive Advantage
- Attractive Industry
- Strategy Formulation and Implementation
- Superior performance
Resources - answer inputs to a firms production process
- identify firm resources, and study strengths, and weaknesses relative to rivals
Capability - answer capacity to integrate sets of resources to perform a task
- determine what firm capabilities allow it to do better than rivals
Competitive advantage - answer ability of a firm to outperform its rivals
- determine how firms resources and capabilities my create competitive advantage
attractive industry - answer industry with opportunities that can be exploited by the
firms resources and capabilities
- locate an attract industry
Strategy Formulation and Implementation - answer strategic actions taken to attain
superior performance
- select a strategy that best exploits resources and capabilities relative to opportunities
in the environment
Pitfalls in Strategic management process - Involvement- related: - answer -
delegating to a "planner" vs. involvement of managers
- top management not supportive of process
- failing to create collaborative environment
- failing to invoke key personnel and to communicate to employees
Pitfalls in strategic management process: - answer - involvement related
- intuitive decisions conflicting with formal plan and analysis
- formality that stifles creativity and flexibility
- moving hastily from mission to strategy formulation
Vision statement answers the question - answer -what do we want to become?
- picture of the future
Mission statement answers the question - answer - what is our business?
- business intent
Vision - answer - time horizon: longer
- framing statement: more general
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