SGMA 591 Study Set Exam With Questions And
Accurate Answers
Elements of successful strategy
1. Simple, consistent, long-term goals
2. Deep knowledge of competitive environment (PEST, competitive analysis)
3. Honest assessment of resources (VIRO, resource based view of firm)
4. Good implementation-> this is not enough to plan how but actually to be able to
execute
Biggest shift in the evolution of strategic management
Shift of emphasis from planning, budgeting, management to competitive advantage.
Emphasis on resources, capabilities, flexibility
What is the difference between Corporate strategy and business strategy?
CS: Where to compete? Focus on industry attractiveness and ability to earn profits.
BS: How to compete in the chosen industry. Focus on competitive advantage, leveraging
assests.
CS is how to win the war, BS is how to win the battle
How can strategy be described?
1. As positioning: Where (CS) and how (BS) to compete
Including geographic, product market, and vertical scope.
Dealing with achieving competitive advantage in the chosen industry.
2. As direction: What we want to become: Vision statement
What we want to achieve: Mission statement, performance goals.
Also describes how we will get there
What does Corporate strategy focus on?
Achieving synergy from set of complementary businesses within a portfolio -> manage as
cohesive unit and sustain integration rather than each business being separate
Accurate Answers
Elements of successful strategy
1. Simple, consistent, long-term goals
2. Deep knowledge of competitive environment (PEST, competitive analysis)
3. Honest assessment of resources (VIRO, resource based view of firm)
4. Good implementation-> this is not enough to plan how but actually to be able to
execute
Biggest shift in the evolution of strategic management
Shift of emphasis from planning, budgeting, management to competitive advantage.
Emphasis on resources, capabilities, flexibility
What is the difference between Corporate strategy and business strategy?
CS: Where to compete? Focus on industry attractiveness and ability to earn profits.
BS: How to compete in the chosen industry. Focus on competitive advantage, leveraging
assests.
CS is how to win the war, BS is how to win the battle
How can strategy be described?
1. As positioning: Where (CS) and how (BS) to compete
Including geographic, product market, and vertical scope.
Dealing with achieving competitive advantage in the chosen industry.
2. As direction: What we want to become: Vision statement
What we want to achieve: Mission statement, performance goals.
Also describes how we will get there
What does Corporate strategy focus on?
Achieving synergy from set of complementary businesses within a portfolio -> manage as
cohesive unit and sustain integration rather than each business being separate
