Strategic Management - Answer-- integrative management
- combines: Analysis, Formulation, and Implementation
- designed to look for a companies competitive advantage
- helps you think like a GM
What is Strategy? - Answer-- to Gain and Sustain Competitive Advantage
- its a set of Goal-dire...
WPC 480 Exam 1 Questions with Verified
Answers
Strategic Management - Answer-- integrative management
- combines: Analysis, Formulation, and Implementation
- designed to look for a companies competitive advantage
- helps you think like a GM
What is Strategy? - Answer-- to Gain and Sustain Competitive Advantage
- its a set of Goal-directed actions to gain and sustain Superior Performance
What makes a Good Strategy? - Answer-1.Analyze firms External and Internal
Environments
2. Strategy Formulation
3. Accomplished through Strategy Implementation
How to Calculate Receivable Days? - Answer-= Accounts Receivable / Revenue Per
Day
How to Calculate Inventory Days? - Answer-= Inventory / Revenue Per Day
How to Calculate Return on Revenue, ROR? - Answer-= Net Income / Total Revenue
Core Values - Answer-- are ethical standards
- designed to Govern the behavior of individuals
- used to provide Vision and Competitive Advantage for its Mission
- "Guard Rails" put in place
Mission - Answer-- used to describe what an organization actually does
- product and services plan the markets in which it will compete
- what the company plans to provide consistently
What are Strategic Commitments ? - Answer-- are expensive actions
- long-term oriented
- difficult to reverse
- steps are taken to achieve mission
- rivalry will occur
,- used to be effective and back up a companies Vision and Missions
Product-Oriented Vision Statement - Answer-- defines a business in terms of a good or
service
- tend to force Managers to take a myopic (nearsighted) view of the competitive
landscape
- Less flexible
"We are in the typewriter business"
Customer-Oriented Vision Statement - Answer-- designed to provide solutions to
customer needs
- adapt to changing environments
- Needs-based vision**
Visionary Companies - Answer-- have aspirational ideas that are NOT exclusive
financially*
- outperform companies in the long run*
- this vision makes employees feel they are apart of something bigger, highly
motivating*
Strategic Positioning - Answer-- to create Superior Value and Costs
- offering similar value at lower costs (controlling costs)
- resources are LIMITED
- used to value customers and control costs
- requires trade-offs
Vision - Answer-- captures an organizations aspiration
- outlines its main goals to accomplish
- What do we want to ultimately accomplish?
- tied to Strategic Intent
What is the AFI Framework Designed for? - Answer-1 Explains and predicts differences
in firm Performance (Competitive Forces)
2. Help Managers formulate and implement strategy (Strategic Groups)
Strategy - Answer-- goal- directed actions
- used to gain and sustain superior performance
- strategy is about creating SUPERIOR value*
, - adopting a set of goals collectively
Competitive Advantage - Answer-- is always relative, NOT absolute
- compare performance to benchmark (other firms, same industry)
- when a business has superior performance over similar businesses in its industry
Sustainable Competitive Advantage - Answer-- firm that is able to outperform its
competitors or industry average
- usually over a long period of time
Competitive Disadvantage - Answer-- when a firm under-performs its rivals or industry
average
Competitive Parity - Answer-- when two firms perform at the same level
- happens with Perfect Competition
- however, it doesn't mean they are doing everything similar**
Main Steps to Achieve Competitive Advantage - Answer-1. Vision, What do we want to
accomplish ultimately?
2. Mission, How do we want to accomplish it?
3. Values, What commitments do we make. What guardrails do we have to stay focus
and true to our vision and mission*
Formulation (Strategy Formulation) - Answer-1. Business Strategy, How should the firm
compete? (cost leadership, differentiation, value innovation)
2. Corporate Strategy, Where should the firm compete? (industry, markets,
geographically)
3. Global Strategy, How and where should the firm compete? (Local, Regional,
National, or International)
Where and How do we Compete?
Implementation (Strategy Implementation) - Answer-1. Organizational Design, How
should the firm turn strategy into action?
2. Corporate Governing, What governing form is most effective? How does the firm
anchor decisions?
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