SEVI 30103 EXAM 1 STUDY GUIDE
Strategy - Answers - goal-directed actions taken to gain and sustain superior
performance, including value creation and capture, relative to competitors.
Strategic management - Answers - Integrative management field, combining analysis,
formulation, and implementation in the quest for competitive advantage.
Three elements of a good strategy - Answers - Diagnosis of the competitive challenge,
a guiding policy to address it, and a set of coherent actions for implementation.
Analysis (in strategy) - Answers - Gathering data about the environment and the firm to
identify opportunities or problems.
Formulation (in strategy) - Answers - Identifying the strategy, creating policies and
plans, and determining resources and metrics.
Implementation (in strategy) - Answers - Putting the strategy into practice through
resource acquisition, personnel management, and execution of processes.
Tesla's strategy elements - Answers - Expanding global manufacturing, increasing
production volumes, and making patents public to accelerate electric vehicle adoption.
Tesla's Guiding policy - Answers - •Build cost-competitive mass-market vehicles
•Make significant investments in lithium-ion battery production
Tesla's coherent actions - Answers - ramp up production to achieve economies of scale,
new factory in Shanghai, and make some proprietary technology available to the public.
Competitive advantage - Answers - Superior performance relative to other competitors
in the same industry or the industry average. RELATIVE NOT ABSOLUTE.
Competitive parity - Answers - Performance at the same level as other competitors in
the same industry or the industry average.
Competitive disadvantage - Answers - Inferior performance relative to other competitors
in the same industry or the industry average.
Sustainable competitive advantage - Answers - Outperforming competitors or the
industry average over a prolonged period. such as the apple iPhone it's been around for
almost a decade.
Actions to gain competitive advantage - Answers - Develop a Good Strategy, Achieve a
Unique Strategic Position, Utilize the AFI (Analysis, Formulation, Implementation)
Strategy Framework.
, Importance of unique strategic positioning - Answers - Source of Competitive
Advantage, Requires Strategic Fit and Trade-Offs, Differentiation from Competitors,
Protection against Industry Forces.
Stakeholders of a firm - Answers - Individuals or groups who 'have an interest' in the
company, including both internal and external stakeholders.
Interests/claims of stakeholders - Answers - Monetary or ethical interests.
Role of stakeholders in strategic decision-making - Answers - Firms must assess
stakeholder needs and impact they may be able to have, considering their power,
legitimacy, and urgency, to inform and prioritize strategic actions.
Internal stakeholders - Answers - People involved in or part of a company, such as
employees, managers, and owners, who have a direct interest and influence on the
organization's success.
External stakeholders - Answers - Individuals or groups outside the company who are
affected by its actions, including customers, suppliers, creditors, and the community,
media, and goverments.
Characteristics of stakeholders that need to be assessed in developing a stakeholder
strategy. - Answers - Power, legitimacy, and urgency.
Stakeholder impact analysis - Answers - 5 steps..
1.Who are our stakeholders
2. What are our stakeholders interest and claims
3.What opportunities and threats do our stakeholders present
4.What economic, legal, ethical, and philanthropic responsibilities do we have to our
stakeholders.
5. What should we do to affectively address stakeholders concerns
Vision Statement - Answers - Outlines a firm's broad, big-picture aspiration, showing its
strategic intent, competitive challenge, and broader implications in a forward-looking
and inspiring way.
Mission Statement - Answers - Describes a firm's broad goal and how it will achieve that
goal through its products, services, and/or markets, serving as a credible strategic
commitment.
Values - Answers - Define a firm's ethical standards and norms, representing the
commitments, safeguards, and legal/ethical behaviors that guide individuals in pursuing
the vision and mission.
Strategy - Answers - goal-directed actions taken to gain and sustain superior
performance, including value creation and capture, relative to competitors.
Strategic management - Answers - Integrative management field, combining analysis,
formulation, and implementation in the quest for competitive advantage.
Three elements of a good strategy - Answers - Diagnosis of the competitive challenge,
a guiding policy to address it, and a set of coherent actions for implementation.
Analysis (in strategy) - Answers - Gathering data about the environment and the firm to
identify opportunities or problems.
Formulation (in strategy) - Answers - Identifying the strategy, creating policies and
plans, and determining resources and metrics.
Implementation (in strategy) - Answers - Putting the strategy into practice through
resource acquisition, personnel management, and execution of processes.
Tesla's strategy elements - Answers - Expanding global manufacturing, increasing
production volumes, and making patents public to accelerate electric vehicle adoption.
Tesla's Guiding policy - Answers - •Build cost-competitive mass-market vehicles
•Make significant investments in lithium-ion battery production
Tesla's coherent actions - Answers - ramp up production to achieve economies of scale,
new factory in Shanghai, and make some proprietary technology available to the public.
Competitive advantage - Answers - Superior performance relative to other competitors
in the same industry or the industry average. RELATIVE NOT ABSOLUTE.
Competitive parity - Answers - Performance at the same level as other competitors in
the same industry or the industry average.
Competitive disadvantage - Answers - Inferior performance relative to other competitors
in the same industry or the industry average.
Sustainable competitive advantage - Answers - Outperforming competitors or the
industry average over a prolonged period. such as the apple iPhone it's been around for
almost a decade.
Actions to gain competitive advantage - Answers - Develop a Good Strategy, Achieve a
Unique Strategic Position, Utilize the AFI (Analysis, Formulation, Implementation)
Strategy Framework.
, Importance of unique strategic positioning - Answers - Source of Competitive
Advantage, Requires Strategic Fit and Trade-Offs, Differentiation from Competitors,
Protection against Industry Forces.
Stakeholders of a firm - Answers - Individuals or groups who 'have an interest' in the
company, including both internal and external stakeholders.
Interests/claims of stakeholders - Answers - Monetary or ethical interests.
Role of stakeholders in strategic decision-making - Answers - Firms must assess
stakeholder needs and impact they may be able to have, considering their power,
legitimacy, and urgency, to inform and prioritize strategic actions.
Internal stakeholders - Answers - People involved in or part of a company, such as
employees, managers, and owners, who have a direct interest and influence on the
organization's success.
External stakeholders - Answers - Individuals or groups outside the company who are
affected by its actions, including customers, suppliers, creditors, and the community,
media, and goverments.
Characteristics of stakeholders that need to be assessed in developing a stakeholder
strategy. - Answers - Power, legitimacy, and urgency.
Stakeholder impact analysis - Answers - 5 steps..
1.Who are our stakeholders
2. What are our stakeholders interest and claims
3.What opportunities and threats do our stakeholders present
4.What economic, legal, ethical, and philanthropic responsibilities do we have to our
stakeholders.
5. What should we do to affectively address stakeholders concerns
Vision Statement - Answers - Outlines a firm's broad, big-picture aspiration, showing its
strategic intent, competitive challenge, and broader implications in a forward-looking
and inspiring way.
Mission Statement - Answers - Describes a firm's broad goal and how it will achieve that
goal through its products, services, and/or markets, serving as a credible strategic
commitment.
Values - Answers - Define a firm's ethical standards and norms, representing the
commitments, safeguards, and legal/ethical behaviors that guide individuals in pursuing
the vision and mission.
