IES STRATEGY MIDTERM EXAM QUESTIONS
AND ANSWERS
what does strategic planning enable a company to gain? - Answers -a sustainable edge
over its competitors
strategic management model: strategy formulation - Answers -vision & mission,
external/internal analysis, long-term goals, generate, assess and select strategies
strategic management model: implementation - Answers -implement corporate
strategy, implement SBU operational strategy
strategic management model: assessment - Answers -measure and assess
performance
3 major steps of the strategic management process - Answers -analysis, formulation,
and implementation
what must you need to understand during the strategy analysis phase? - Answers -
conditions in external environment and firm strengths and weaknesses
first step of the strategy formulation stage - Answers -rate of return above the cost of
capital (how do we make money?)
strategy formulation for corporate strategy - Answers -evaluate industry attractiveness
strategy formulation for SBU strategy - Answers -evaluate competitive advantage
what three factors make up strategy implementation? - Answers -corporate
governance, resource allocation, and organizational design
3 levels of strtegy - Answers -corporate-level, business-level (SBU), and
operational/functional
vision or strategic intent - Answers -desired future state and aspiration of the
organization
, mission - Answers -overriding purpose in line with the values or expectations of
stakeholders
who is the mission geared towards? - Answers -stakeholders and the ethics agenda
3 distinct aspects to the task of formulating a mission - Answers --understand what
business you are in
-decide when to change the mission and the strategic path
-communicate the mission
phase 1 of developing a mission statement - Answers -choose multiple items from the
statement and require all managers that read like supporting documentation
phase 2 of developing a mission statement - Answers -requested to undertake a
mission statement for the org
phase 3 of developing a mission statement - Answers -merge statements into a single
document
phase 4 of developing a mission statement - Answers -modifications, additions, and
deletions have been made and document is reviewed
phase 5 of developing a mission statement - Answers -decide how to best
communicate mission
strategic goals are ____, while strategic objectives are not - Answers -financial
goals should cover what criteria - Answers -SMART
3 groups stakeholders can be divided into - Answers -from the market, political, or
technological environments
"market" environment stakeholders - Answers -have an economic relationship with the
organization (suppliers, customers, competitors, etc.)
"political" environment stakeholders - Answers -influence the social legitimacy of the
strategy (policy makers, etc.)
"technological" environment stakeholders - Answers -influence the spread of new
technologies and adoption of new standards (key tech players, etc)
power of stakeholders: directors and shareholders - Answers -concentration of capital,
hierarchy, access to info
power of stakeholders: lenders - Answers -type financial structure equity/borrowing
ratio
AND ANSWERS
what does strategic planning enable a company to gain? - Answers -a sustainable edge
over its competitors
strategic management model: strategy formulation - Answers -vision & mission,
external/internal analysis, long-term goals, generate, assess and select strategies
strategic management model: implementation - Answers -implement corporate
strategy, implement SBU operational strategy
strategic management model: assessment - Answers -measure and assess
performance
3 major steps of the strategic management process - Answers -analysis, formulation,
and implementation
what must you need to understand during the strategy analysis phase? - Answers -
conditions in external environment and firm strengths and weaknesses
first step of the strategy formulation stage - Answers -rate of return above the cost of
capital (how do we make money?)
strategy formulation for corporate strategy - Answers -evaluate industry attractiveness
strategy formulation for SBU strategy - Answers -evaluate competitive advantage
what three factors make up strategy implementation? - Answers -corporate
governance, resource allocation, and organizational design
3 levels of strtegy - Answers -corporate-level, business-level (SBU), and
operational/functional
vision or strategic intent - Answers -desired future state and aspiration of the
organization
, mission - Answers -overriding purpose in line with the values or expectations of
stakeholders
who is the mission geared towards? - Answers -stakeholders and the ethics agenda
3 distinct aspects to the task of formulating a mission - Answers --understand what
business you are in
-decide when to change the mission and the strategic path
-communicate the mission
phase 1 of developing a mission statement - Answers -choose multiple items from the
statement and require all managers that read like supporting documentation
phase 2 of developing a mission statement - Answers -requested to undertake a
mission statement for the org
phase 3 of developing a mission statement - Answers -merge statements into a single
document
phase 4 of developing a mission statement - Answers -modifications, additions, and
deletions have been made and document is reviewed
phase 5 of developing a mission statement - Answers -decide how to best
communicate mission
strategic goals are ____, while strategic objectives are not - Answers -financial
goals should cover what criteria - Answers -SMART
3 groups stakeholders can be divided into - Answers -from the market, political, or
technological environments
"market" environment stakeholders - Answers -have an economic relationship with the
organization (suppliers, customers, competitors, etc.)
"political" environment stakeholders - Answers -influence the social legitimacy of the
strategy (policy makers, etc.)
"technological" environment stakeholders - Answers -influence the spread of new
technologies and adoption of new standards (key tech players, etc)
power of stakeholders: directors and shareholders - Answers -concentration of capital,
hierarchy, access to info
power of stakeholders: lenders - Answers -type financial structure equity/borrowing
ratio
