Strategy - Answer-is the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors
Strategy is a combination of plan and action oriented towards a goal
AFI Framework - Answer-Analysis:
External - the process of scanning and evaluating an organ...
WPC 480 Exam 1 Questions and
Answers
Strategy - Answer-is the set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
Strategy is a combination of plan and action oriented towards a goal
AFI Framework - Answer-Analysis:
External - the process of scanning and evaluating an organization's various external
environmental sectors to determine positive and negative trends that could impact
organizational performance
Internal - Internal analysis is the process of identifying and evaluating an organization's
specific characteristics, including its: resources, capabilities, core competencies
Formulation:
Business Strategy - the goal-directed actions managers take in their quest for
competitive advantage when competing in a single product market strategies.
Corporate Strategy - comprises the decisions that senior management makes and the
goal-directed actions it takes in the quest for competitive advantage in several industries
and markets simultaneously.
Corporate strategy determines the boundaries of the firm along three dimensions:
industry value chain, products and services, and geography
Stakeholders - Answer-Organizations, groups, and individuals that can affect or are
affected by a firm's actions
External: customers, suppliers, governments, media
Internal: employees, stockholders, board members
taking care of stakeholders = good strategy
Corporate Social Responsibilities - Answer-Economic, legal, ethical and philanthropic
Mission
Vision
Values - Answer-mission: What an organization does and why it exists; sometimes
called the "purpose statement"
vision: What an organization wants to accomplish/become
values: What an organization believes in, drive mission
, Top Down vs. Emergent Strategy - Answer-top down: a rational, data-driven strategy
process through which top management attempts to program future success
emergent: Any unplanned strategic initiative, often bubbling up from the bottom of the
organization
Balance Scorecard - Answer-multiple internal and external performance metrics in order
to balance both financial and strategic goals.
develop strategy through 4 key questions:
how do the customers view us?
how do we create value?
what core competencies do we need?
how do shareholders view us?
able to use multiple internal and external metrics
great for strategy implementation, not strategy formulation
advantages:
■ Communicate and link the strategic vision to responsible parties within the
organization.
■ Translate the vision into measureable operational goals.
■ Design and plan business processes.
■ Implement feedback and organizational learning in order to modify and adapt strategic
goals when indicated.
Triple Bottom Line - Answer-is an accounting framework with three parts: social,
environmental (or ecological) and financial.
company's responsibility lies with stakeholders rather than shareholders
profit, people, planet which leads to a sustainable strategy and aiming to measure the
financial, social and environmental performance of the corporation over a period of time
Limitations of Accounting Measure - Answer-- Backword looking
- Does not capture "off-balance sheet"
- Focus on tangible assets and struggle to capture value of intangibles
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