BUS 345 QUIZ 1 QUESTIONS AND ANSWERS
Corporate Strategy - Answers - concerned about deciding which businesses to operate
in and how to manage that array of businesses
Business Unit or Competitive Strategy - Answers - concerned with staying ahead or
succeeding in that particular business
Five Questions of Strategy - Answers - 1. Where should we compete?
2. How will we get there?
3. How are we going to win in the market place?
4. How do we create value for our shareholder?
5. What is our sequence of moves?
The AFI Strategy Framework - Answers - 1.) Analyze
2.) Formulate
3.) Implement
What does the AFI Strategy Framework do? - Answers - - interdependent relationships
- explains and predicts differences in firm performances
- helps managers formulate and implement a strategy
Strategy - Answers - the set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
What is a good strategy? - Answers - - a diagnosis of the competitive challenge
- a guiding policy to address the competitive challenge
- a set of coherent actions to implement the firm's guiding policy
Elements of a Good Strategy: Analysis - Answers - - diagnosis of the competitive
challenge
- analysis of the firm's internal and external environments
Elements of a Good Strategy: Formulation - Answers - - effective guiding policy
- backed by strategic commitments: investments & changes
Elements of a Good Strategy: Implementation - Answers - a set of coherent actions
Competitive Advantage - Answers - superior performance relative to other competitors
in the same industry or the industry average
How do you assess competitive advantage? - Answers - - compare firm to competitors
in the same industry
- compare firm to industry average
, Sustainable Competitive Advantage - Answers - A firm that is able to outperform its
competitors or the industry average over a prolonged period of time
Competitive Disadvantage - Answers - A firm that underperforms its rivals or the
industry average
Competitive Parity - Answers - two or more firms perform at the same level
How do you gain competitive advantage? - Answers - - Provide goods or services
consumers value more highly than those of its competitors
- Provide goods or services similar to the competitors' at a lower price
Profitability and Market Share - Answers - the rewards of superior value creation and
capture
Strategic Positioning - Answers - A unique position within an industry that allows the
firm to provide value to customers, while controlling costs
Strategic Positioning Requires Trade-offs - Answers - - how to allocate resources
- which activities to pursue
A Unique Strategic Position - Answers - - the key to successful strategy
- requires combining activities
What is not strategy? - Answers - 1. grandiose statement
2. a failure to face a competitive advantage
3. operational effectiveness, competitive benchmarking or tactical tool
Vision - Answers - - captures an organization's aspiration
- identifies the long-term objective
- should be forward-looking and inspiring
What an effective vision? - Answers - - pervades the organization
- provides a sense of winning
- motivates employees to aim for the same target
Vision: Strategic Intent - Answers - - outlines a firm's stretch goal
- based on a firm's vision
Actions based on vision will: - Answers - - build necessary resources
- build capabilities
- ensure continuous organizational learning
- ensure learning from failure
Mission - Answers - what an organization actually does
Corporate Strategy - Answers - concerned about deciding which businesses to operate
in and how to manage that array of businesses
Business Unit or Competitive Strategy - Answers - concerned with staying ahead or
succeeding in that particular business
Five Questions of Strategy - Answers - 1. Where should we compete?
2. How will we get there?
3. How are we going to win in the market place?
4. How do we create value for our shareholder?
5. What is our sequence of moves?
The AFI Strategy Framework - Answers - 1.) Analyze
2.) Formulate
3.) Implement
What does the AFI Strategy Framework do? - Answers - - interdependent relationships
- explains and predicts differences in firm performances
- helps managers formulate and implement a strategy
Strategy - Answers - the set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
What is a good strategy? - Answers - - a diagnosis of the competitive challenge
- a guiding policy to address the competitive challenge
- a set of coherent actions to implement the firm's guiding policy
Elements of a Good Strategy: Analysis - Answers - - diagnosis of the competitive
challenge
- analysis of the firm's internal and external environments
Elements of a Good Strategy: Formulation - Answers - - effective guiding policy
- backed by strategic commitments: investments & changes
Elements of a Good Strategy: Implementation - Answers - a set of coherent actions
Competitive Advantage - Answers - superior performance relative to other competitors
in the same industry or the industry average
How do you assess competitive advantage? - Answers - - compare firm to competitors
in the same industry
- compare firm to industry average
, Sustainable Competitive Advantage - Answers - A firm that is able to outperform its
competitors or the industry average over a prolonged period of time
Competitive Disadvantage - Answers - A firm that underperforms its rivals or the
industry average
Competitive Parity - Answers - two or more firms perform at the same level
How do you gain competitive advantage? - Answers - - Provide goods or services
consumers value more highly than those of its competitors
- Provide goods or services similar to the competitors' at a lower price
Profitability and Market Share - Answers - the rewards of superior value creation and
capture
Strategic Positioning - Answers - A unique position within an industry that allows the
firm to provide value to customers, while controlling costs
Strategic Positioning Requires Trade-offs - Answers - - how to allocate resources
- which activities to pursue
A Unique Strategic Position - Answers - - the key to successful strategy
- requires combining activities
What is not strategy? - Answers - 1. grandiose statement
2. a failure to face a competitive advantage
3. operational effectiveness, competitive benchmarking or tactical tool
Vision - Answers - - captures an organization's aspiration
- identifies the long-term objective
- should be forward-looking and inspiring
What an effective vision? - Answers - - pervades the organization
- provides a sense of winning
- motivates employees to aim for the same target
Vision: Strategic Intent - Answers - - outlines a firm's stretch goal
- based on a firm's vision
Actions based on vision will: - Answers - - build necessary resources
- build capabilities
- ensure continuous organizational learning
- ensure learning from failure
Mission - Answers - what an organization actually does
