MBA 705 - Exam 1 UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (134)
Mission is a broadly defined but enduring statement of purpose that identifies the scope
of an organization's operations and its offerings to the various stakeholders
Strategy refers to top management's plans to develop and sustain competitive advantage
so that the organization's mission is fulfilled.
Competitive advantage is a state whereby a firm's successful strategies cannot be easily duplicated by its
competitors. Maintaining a sustained competitive advantage over time can be
challenging.
sustained competitive advantage A company's strategies enable it to maintain above-average profitability for a
number of years
Strategic Management is of the environment in which the organization operates prior to formulating a
strategy, as well as the plan for implementation and control of the strategy.
The Strategic Management Process 1. External Analysis
2. Internal Analysis
3. Strategy Formulation
4. Strategy Implementation
5. Strategic Control
External Analysis Analyze the opportunities and threats, or constraints, that exist in the
organization's external environment, including industry and forces in the external
environment
Internal Anaylsis Analyze the organization's strengths and weaknesses in its internal environment.
Consider the context of managerial ethics and corporate social responsibility
strategy formulation Formulate strategies that build and sustain competitive advantage by matching
the organization's strengths and weaknesses with the environment's opportunities
and threats.
Strategic Implementation (Execution) Implement the strategies that have been developed.
Strategic Control Measure success and make corrections when the strategies are not producing the
desired outcomes.
Business model explains how the organization seeks to earn a profit by selling its goods.
Progressive firms often devise innovative business models that extract revenue -
and ultimately profits - from sources not identified by competitors.
, Five Characteristics of a Successful Strategy 1. Understand the competitive environment.
2. Understand how resources translate into strengths and weaknesses.
3. The strategy is consistent with the mission and goals of the organization.
4. Plans for putting the strategy into action are designed before it is implemented.
5. Possible future changes (i.e., strategic control) are evaluated before the
strategy is adopted.
Intended Strategy what management originally plans.
may be realized just as it was planned, in a modified form, or even in an entirely
different form.
Realized Strategy what management actually implements.
Hence, the original strategy may be realized with desirable or undesirable results,
or it may be modified as changes in the firm or the environment become known.
Gap between Intended and Realized The gap between the intended and realized strategies usually results from
unforeseen environmental or organizational events, better information that was
not available when the strategy was formulated, or an improvement in top
management's ability to assess its environment. Although it is important for
managers to formulate responsible strategies based on a realistic and thorough
assessment of the firm and its environment, things invariably change along the
way. Hence, it is common for such a gap to exist, creating the need for constant
strategic action if a firm is to stay on course. Instead of resisting modest strategic
changes when new information is discovered, managers should search for new
information and be willing to make such changes when necessary. This activity is
part of strategic control —the final step in the strategic management process.
Strategy as an Art The lack of environmental predictability and the fast pace of change render
elaborate strategy planning as suspect at best.
Strategic managers should emphasize creativity and innovation.
Strategies should be developed like a potter molds clay.
Strategy as a Science The scientific approach is the most widely recognized view of strategy.
Strategic managers are encouraged to systematically assess the firm's external
environment and evaluate the pros and cons of myriad alternatives before
formulating strategy.
The scientific approach is more prominent in this text.
C
Terms in this set (134)
Mission is a broadly defined but enduring statement of purpose that identifies the scope
of an organization's operations and its offerings to the various stakeholders
Strategy refers to top management's plans to develop and sustain competitive advantage
so that the organization's mission is fulfilled.
Competitive advantage is a state whereby a firm's successful strategies cannot be easily duplicated by its
competitors. Maintaining a sustained competitive advantage over time can be
challenging.
sustained competitive advantage A company's strategies enable it to maintain above-average profitability for a
number of years
Strategic Management is of the environment in which the organization operates prior to formulating a
strategy, as well as the plan for implementation and control of the strategy.
The Strategic Management Process 1. External Analysis
2. Internal Analysis
3. Strategy Formulation
4. Strategy Implementation
5. Strategic Control
External Analysis Analyze the opportunities and threats, or constraints, that exist in the
organization's external environment, including industry and forces in the external
environment
Internal Anaylsis Analyze the organization's strengths and weaknesses in its internal environment.
Consider the context of managerial ethics and corporate social responsibility
strategy formulation Formulate strategies that build and sustain competitive advantage by matching
the organization's strengths and weaknesses with the environment's opportunities
and threats.
Strategic Implementation (Execution) Implement the strategies that have been developed.
Strategic Control Measure success and make corrections when the strategies are not producing the
desired outcomes.
Business model explains how the organization seeks to earn a profit by selling its goods.
Progressive firms often devise innovative business models that extract revenue -
and ultimately profits - from sources not identified by competitors.
, Five Characteristics of a Successful Strategy 1. Understand the competitive environment.
2. Understand how resources translate into strengths and weaknesses.
3. The strategy is consistent with the mission and goals of the organization.
4. Plans for putting the strategy into action are designed before it is implemented.
5. Possible future changes (i.e., strategic control) are evaluated before the
strategy is adopted.
Intended Strategy what management originally plans.
may be realized just as it was planned, in a modified form, or even in an entirely
different form.
Realized Strategy what management actually implements.
Hence, the original strategy may be realized with desirable or undesirable results,
or it may be modified as changes in the firm or the environment become known.
Gap between Intended and Realized The gap between the intended and realized strategies usually results from
unforeseen environmental or organizational events, better information that was
not available when the strategy was formulated, or an improvement in top
management's ability to assess its environment. Although it is important for
managers to formulate responsible strategies based on a realistic and thorough
assessment of the firm and its environment, things invariably change along the
way. Hence, it is common for such a gap to exist, creating the need for constant
strategic action if a firm is to stay on course. Instead of resisting modest strategic
changes when new information is discovered, managers should search for new
information and be willing to make such changes when necessary. This activity is
part of strategic control —the final step in the strategic management process.
Strategy as an Art The lack of environmental predictability and the fast pace of change render
elaborate strategy planning as suspect at best.
Strategic managers should emphasize creativity and innovation.
Strategies should be developed like a potter molds clay.
Strategy as a Science The scientific approach is the most widely recognized view of strategy.
Strategic managers are encouraged to systematically assess the firm's external
environment and evaluate the pros and cons of myriad alternatives before
formulating strategy.
The scientific approach is more prominent in this text.
