explain the concept of strategy correct answers the set of related actions that managers take to increase their company's performance
- achieving superior performance relative to rivals is the ultimate challenge
outline the main components of the strategic management process correct answers 1. ...
MGT 499 Exam 1(100% Verified)
explain the concept of strategy correct answers the set of related actions that managers take to increase
their company's performance
- achieving superior performance relative to rivals is the ultimate challenge
outline the main components of the strategic management process correct answers 1. select mission and
goals
2. analyze external opportunities and threats
3. analyze internal strengths and weaknesses
4. develop/ select strategies
5. implement the strategies
corporate level managers correct answers oversee the development of strategies for the whole
organization
-maximize corporate profitability
-provide a link between the people who oversee the development of the firm and the shareholders
-"agents of the shareholders"
-concerned with strategies that span individual businesses
EX: CEO
business level managers correct answers translate the general statements of direction and intent from the
corporate level into concrete strategies for individual businesses
-concerned with strategies that are specific to a particular business
-oversee the operations of an entire company or division
functional level managers correct answers responsible for the specific business functions or operations
(HR, purchasing, logistics, production, customer service) found within a company or one of its divisions.
-responsibility is generally confined to one organizational activity
explain the implications of SWOT matrix in the strategic planning process correct answers -What can the
company do to turn weaknesses into strengths and threats into opportunities?
, - purpose: to identify ways that an organization can use its specific strengths t capitalize on opportunities
or to avoid threats and to overcome its weaknesses
what is the strategic meaning of the Business model? correct answers a kind of mental model, or gestalt,
of how the various strategies and capital investments a company makes fit together to generate above-
average performance.
describe how a company's mission statement guides its strategic actions correct answers The responses to
the questions: "what is our business? what will it be? what should it be?" guide the formulation for the
mission.
-Who is being satisfied?
-what is being satisfied?
-how those needs are being satisfied
Discuss the need for a consumer-oriented definition (Abell's Business definition) of the business. correct
answers A company's mission is best approached from a customer-oriented business approach:
-Who is being satisfied? (customer groups)
-What is being satisfied? (customer needs)
-How customer needs are being satisfied (Distinctive competencies)
Discuss the common pitfalls of planning, and how those pitfalls can be avoided correct answers 1)
unforeseen circumstances can negatively affect strategic plans
2) excessive importance is attached to the role of top management while ignoring lower level managers
3) many successful strategies are the result of serendipity, not rational strategizing.
outline the cognitive biases that might lead to poor strategic decisions, and explain how these biases can
be overcome correct answers a) prior hypothesis bias
b) escalating commitment
c) reasoning by analogy
D) representativeness
E) the illusion of control
F) availability of error
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