chapter 10

Question 1

Strategy

Answer 1

a comprehensive plan guiding resource allocation to
achieve long-term organization goals

Question 2

Strategic management

Answer 2

the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage

Question 3

Strategic intent:

Answer 3

focusing all organizational energies on a unifying and compelling goal

Question 4

Competitive advantage

Answer 4

ability to do something so well that one outperforms competitors

Question 5

Sustainable competitive advantage

Answer 5

one that is difficult or
costly for competitors to imitate

Question 6

Sources of competitive advantange

Answer 6

• technology
• cost & quality
• knowledge and speed
• barriers to entry
• financial resources

Question 7

levels of strategies: corporate

Answer 7

Sets long-term direction for the total enterprise

what businesses are we in?

Question 8

levels of strategies: Business

Answer 8

How a division or strategic business unit will compete
in its product or service domain

How do we compete in each of our major businesses

Question 9

levels of strategies: Functional

Answer 9

Guides the use of resources within one specific area
of operations

How do we best support each of our strategies?

Question 10

strategic analysis

Answer 10

process of analyzing the organization, the
environment, its competitive positioning, and current strategies

Question 11

Strategic Questions

Answer 11

• What is our business mission?
• Who are our customers?
• What do our customers value?
• What have been our results?
• What is our plan?

Question 12

Strategic Analysis Analysis of mission:

Answer 12

The reason for an organization’s existence

• Good mission statements identify:
• What are we moving to?
• What is our dream?
• What kind of difference do we make?
• What do we want to be known for?

Question 13

Stakeholders

Answer 13

• Individuals and groups directly affected by the organization and its
  strategic accomplishments
• An important test of the mission is how well it serves the organization’s
  stakeholders

Question 14

Strategic Analysis
Analysis of Core values:

Answer 14

• Broad beliefs about what is or is not appropriate behaviour
• Organizational culture reflects the predominant value system of the
  organization as a whole

Question 15

strategic analysis Analysis of objectives:

Answer 15

Operating objectives are specific results that organizations try to
accomplish

Question 16

Strategic Analysis
Analysis of organizational resources and capabilities:

Answer 16

• Core competency is a special strength that gives an organization competitive
  advantage
• An important goal of the organization is assessing core competencies

Question 17

strategic analysis Potential core competencies:

Answer 17

• Special knowledge or expertise
• Superior technology
• Efficient supply chains
• Unique product distribution systems

Question 18

swot

Answer 18

• strengths
• weaknesses
• opportiunites
• threats

Question 19

porters 5 forces

Answer 19

• bargaining power of suppliers
• bargaining power of customers
• threat of new entrants to industry
• threat of substitute products
• level of competition or rivalry among firms in industry

Question 20

Strategy Formulation

Answer 20

• The process of creating strategy
• Involves assessing existing strategies, organization, and
  environment to develop new strategies and strategic plans
  capable of delivering future competitive advantage

Question 21

Corporate-Level Strategy Formulation
Portfolio planning model:

Answer 21

Portfolio planning seeks the best mix of investments among
alternative business opportunities
* BCG Matrix analyzes business opportunities according to
market growth rate and market share

Question 22

Global strategies: Globalization strategy

Answer 22

World is one large market; standardize products and
advertising as much as possible (Apple)

Question 23

Global strategies: Multidomestic strategy:

Answer 23

Customize products and advertising to local markets
as much as possible (McDonalds)

Question 24

global strategies Transnational strategy:

Answer 24

Balance efficiencies in global operations and
responsiveness to local markets (Samsung)

Question 25

Business-Level Strategy Formulation Business-level strategy formulation

Answer 25

* Good strategies help achieve above average returns * Key question is “How can we best compete for customers in our market and with our products or services?”

Question 26

question marks

Answer 26

- poor position, growing industry - growth or retrenchment strategy

Question 27

stars

Answer 27

- dominant position, growing industry - growth strategy

Question 28

dogs

Answer 28

- poor position, low growth industry - retrenchment strategy

Question 29

cash cows

Answer 29

- dominant position, low growth industry - stability or modest growth strategy

Question 30

broad market scope, low price

Answer 30

cost leadership strategy - great value cola

Question 31

narrow market scope, low price

Answer 31

focused cost leadership strategy - cott cola

Question 32

narrow market scope, unique product

Answer 32

focused differentitation,- a&w root beer

Question 33

broad market scope, unique product

Answer 33

differentiation strategy - coca cola , pepsi

Question 34

Strategy Implementation

Answer 34

- The process of allocating resources and putting strategies into action * All organizational and management systems must be mobilized to support and reinforce the accomplishment of strategies * Must be supported in every aspect of management * Planning * Controlling * Organizing * Leading

Question 35

Strategic planning failures that hinder strategy implementation: Failures of substance

Answer 35

Inadequate attention to major strategic planning elements

Question 36

Strategic planning failures that hinder strategy implementation: Failures of process

Answer 36

- Poor handling of strategy implementation * Lack of participation error * Goal displacement error

Question 37

Strategy Implementation Strategic control

Answer 37

* Makes sure strategies are well implemented and that poor strategies are scrapped or modified

Question 38

Strategy Implementation: Corporate governance

Answer 38

Control and monitoring of top management

Question 39

Strategy Implementation Strategic leadership

Answer 39

* Inspires people to continually change, refine, and improve strategies and their implementation

Question 40

Strategy Implementation: Critical tasks of strategic leadership

Answer 40

Critical tasks of strategic leadership * Maintain strategic control * Be the guardian of trade-offs * Create a sense of urgency * Ensure that everyone understands the strategy * Be a teacher