MAN 4720 Policy Exam 1 (Chpts 1-4) || 100% True Solutions.
What is the AFI Strategy Framework? correct answers A: Analysis
F: Formulation
I: Implementation
The AFI Strategy Framework correct answers -Helps managers craft and execute a strategy
-Enhances chances of achieving superior performance
-Includes three broad tasks: analyze, formulate, and implement
Strategic Management correct answers an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage
Strategy correct answers a set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors
What is a Good Strategy? correct answers - A diagnosis of the competitive challenge (Analysis)
- A guiding policy to address the competitive challenge (Formulation)
- A set of coherent actions to implement the firm's guiding policy (Implementation)
Competitive Advantage correct answers Superior performance relative to other competitors in
the same industry or the industry average
How to Assess Competitive Advantage correct answers - Compare firm to competitors in the
same industry
-Compare form to industry average
Sustainable Competitive Advantage correct answers A firm that is able to outperform its
competitors or the industry average over a prolonged period of time (ex: Apple--smartphone
industry)
Competitive Disadvantage correct answers A firm that underperforms its rivals or the industry
average
Competitive Parity correct answers Two or more firms that perform at the same level
How to Gain a Competitive Advantage correct answers - Provide goods or services consumers
value more highly than those of its competitors
- Provide goods or services similar to the competitiors' at a lower price
Strategic Positioning correct answers A unique position within an industry that allows the firm to
provide value to customers while controlling cost
Economic Contribution Formula (EC) correct answers Value Creation-Cost= EC
What Strategy is NOT correct answers -Grandiose statements
, -A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or other tactical tools
Firm Performance correct answers Determined primarily by two factors: industry effects and
firm effects
Industry Effects correct answers Firm performance attributed to the industry structure in which a
firm competes; describes the underlying economic structure of the industry; determined by
elements common to all industries (ex: entry and exit barriers, number and size of companies,
types of products and services offered)
Firm Effects correct answers Firm performance attributed to the actions managers
take/managerial actions
A firm's strategy can explain up to ____% of its performance correct answers 55
About ____% of a firms profitability depends on the industry it's in correct answers 20
Defining ___, ___ and ___ is the first step in gaining and sustaining a competitive advantage
correct answers Vision, Mission and Values
Vision answers the question of: correct answers What do we want to accomplish ultimately?
Mission answers the question of: correct answers How do we accomplish our goals?
Values answer the question of: correct answers What commitments do we make, and what
guardrails do we put in place, to act both legally and ethically as we pursue our vision and
mission?
Vision correct answers -Captures an orgnization's aspiration
-Indentifies the long-term objective
-Should be forward-looking and inspiring
An effective vision: correct answers -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
- Leaves room for contributions
Vision (Strategic Intent) correct answers - Outlines a firm's stretch goal
- Is based on a firm's vision
Actions based on vision will: correct answers -Build necessary resources
- Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
What is the AFI Strategy Framework? correct answers A: Analysis
F: Formulation
I: Implementation
The AFI Strategy Framework correct answers -Helps managers craft and execute a strategy
-Enhances chances of achieving superior performance
-Includes three broad tasks: analyze, formulate, and implement
Strategic Management correct answers an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage
Strategy correct answers a set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors
What is a Good Strategy? correct answers - A diagnosis of the competitive challenge (Analysis)
- A guiding policy to address the competitive challenge (Formulation)
- A set of coherent actions to implement the firm's guiding policy (Implementation)
Competitive Advantage correct answers Superior performance relative to other competitors in
the same industry or the industry average
How to Assess Competitive Advantage correct answers - Compare firm to competitors in the
same industry
-Compare form to industry average
Sustainable Competitive Advantage correct answers A firm that is able to outperform its
competitors or the industry average over a prolonged period of time (ex: Apple--smartphone
industry)
Competitive Disadvantage correct answers A firm that underperforms its rivals or the industry
average
Competitive Parity correct answers Two or more firms that perform at the same level
How to Gain a Competitive Advantage correct answers - Provide goods or services consumers
value more highly than those of its competitors
- Provide goods or services similar to the competitiors' at a lower price
Strategic Positioning correct answers A unique position within an industry that allows the firm to
provide value to customers while controlling cost
Economic Contribution Formula (EC) correct answers Value Creation-Cost= EC
What Strategy is NOT correct answers -Grandiose statements
, -A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or other tactical tools
Firm Performance correct answers Determined primarily by two factors: industry effects and
firm effects
Industry Effects correct answers Firm performance attributed to the industry structure in which a
firm competes; describes the underlying economic structure of the industry; determined by
elements common to all industries (ex: entry and exit barriers, number and size of companies,
types of products and services offered)
Firm Effects correct answers Firm performance attributed to the actions managers
take/managerial actions
A firm's strategy can explain up to ____% of its performance correct answers 55
About ____% of a firms profitability depends on the industry it's in correct answers 20
Defining ___, ___ and ___ is the first step in gaining and sustaining a competitive advantage
correct answers Vision, Mission and Values
Vision answers the question of: correct answers What do we want to accomplish ultimately?
Mission answers the question of: correct answers How do we accomplish our goals?
Values answer the question of: correct answers What commitments do we make, and what
guardrails do we put in place, to act both legally and ethically as we pursue our vision and
mission?
Vision correct answers -Captures an orgnization's aspiration
-Indentifies the long-term objective
-Should be forward-looking and inspiring
An effective vision: correct answers -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
- Leaves room for contributions
Vision (Strategic Intent) correct answers - Outlines a firm's stretch goal
- Is based on a firm's vision
Actions based on vision will: correct answers -Build necessary resources
- Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
