MBA 706 Exam 2 answers
MissionA proclamation of the organization's primary objective that encapsulates
its core values
Influences on an organization's missionCorporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statementCommon and not restraining
...
MBA 706 Exam 2 answers
Mission✔✔A proclamation of the organization's primary objective that encapsulates
its core values
Influences on an organization's mission✔✔Corporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement✔✔Common and not restraining
Narrow mission statement✔✔Is restraining and focuses too much on one thing
Characteristics of successful mission statements✔✔Credibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals✔✔Specific, Measurable, Attainable, Realistic, Time scaled
Characteristics of successful objectives✔✔1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives✔✔- Corporate
- Functional
-operations
Long term goals are for✔✔5 years from now
Short term goals are set for✔✔Up to 12 months from now
What is the focus of cost leadership strategy?✔✔To keep cost low
How is Cost Leadership achieved?✔✔Through policies such as controlling overhead
costs and cost minimization
Basic drivers of cost leadership strategy✔✔Economy of scale, linkages and
relationships, infrastructure
Sources of differentiation strategy✔✔Product performance, perception, and
augmentation (adds value)
With differential strategy the customer:✔✔Views the product or service as unique
Focus strategy sources include✔✔Geographic area, end-user focus, product line
specialist
, The organization concentrates on a narrower range of business activities with this
strategy✔✔Focus strategy
Characteristics of sustainable competitive advantage✔✔Relevant and defensible
Eight sources of competitive advantage✔✔Product performance, perception of
product, low cost operations, legal advantages, alliances/ relationships, superior
skills, flexibility, attitude
product performance characteristics:✔✔Robust, economic and easy to use
Perception of product✔✔Brand image and product positioning
Low cost operations✔✔Location and buying power
Legal advice✔✔Patents, contracts, and copyright
Alliances/ relationships✔✔Networking and procurement
Superior skills✔✔Database management and design skills
Flexibility✔✔Developing customized solutions
Attitude✔✔Aggressive selling and rough negotiations
There are 4 types of market positions:✔✔Leader, challenger, follower, niche
Leader market position✔✔Expands the market, offensive strategy, defensive
strategy
Challenger market position✔✔Selective targeting and attacks leader
Follower market position✔✔Duplication and adaptation
Niche market position✔✔Focus on specific market segments and strategies adopted
by niche players
Reasons for strategic wear out✔✔Changes in customer requirements
Changes in distribution systems
Innovation by competitors
Poor control of company costs
Lack of consistent investment
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