Chapter 1

Question 1

6 Principles of Sun Tzu in Strategy

Answer 1

1- Win all without fighting
2- Avoid strengths, attack weaknesses
3- Foreknowledge (know the enemy and yourself)
4- Speed & preparation
5- Shape your opponents
6- Character-based leadership

WAFSOC

Question 2

Strategy

Answer 2

integrated, coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage

Question 3

Strategic Competitiveness

Answer 3

Achieved when a firm successfully form and implements a value-creating strategy

Question 4

Competitive Advantage (CA)

Answer 4

when a firm implements a strategy competitors are unable to duplicate or find too costly to try to imitate (not permanent)

Question 5

Above Average Returns

Answer 5

Returns in excess of what investor expects in comparison to other investments with similar risk

Question 6

Strategic Management Process

Answer 6

Commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns

Question 7

Average Returns

Answer 7

are returns equal to those an investor expects to earn from other investments with a similar amount of risk.

Question 8

Strategic Management Process

Answer 8

is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.

Question 9

Primary Stakeholders

Answer 9

are directly involved in the value-creating processes of the firm

Question 10

Secondary Stakeholders

Answer 10

can both influence and are influenced by what the firm does, but they do not contribute directly to the value the firm creates