BUSINESS STRATEGY: FINAL EXAM QUESTIONS WITH
ACCURATE ANSWERS
3 levels of culture correct answer artifacts: Visual organizational structures and
processes
values:Strategies, goals, organizational philosophies
assumptions: Unconscious, taken-for-granted beliefs, perceptions, thoughts, and
feelings
3 Strategic Questions correct answer 1.What is
the firm's present situation?
2. What direction to head and what performance targets to set?
3. How to run the firm in ways that produce good results?
5 Elements of strategy correct answer 1. Arenas
2. Vehicles
3. Differentiators
4. Staging
5. Economic Logic
5 Generic Strategic Positions correct answer 1. Low cost
2. best cost
,3. focused cost leadership
4. broad differentiation
5. focused differentiation
5 P's of strategy correct answer 1. Plan
2. Ploy
3. Pattern
4. Position
5. Perspective
6th: Process
A Company's Strategy-Making Hierarchy correct answer 1. Corporate
2.Business
3.Functional Area
4. Operating
A firm is diversified when it correct answer operates in two or more lines of
business that are in distinctly different industries; can also be when firm branches
out geographically
multiple products or broad regions
, acquisition correct answer One firm buys controlling interest in another firm with
the intent of making the acquired firm a subsidiary business within its portfolio
Balance Scorecard correct answer Combines both strategic and financial
objectives; gives management a view of performance across multiple objectives
and stakeholders
Best Value correct answer Deliver superior value by meeting or exceeding buyer
expectations on product attributes & beating their price expectations
Between pursuing a low-cost advantage and a differentiation advantage
best value risk correct answer Low-cost firms able to lure customers away with
lower prices
High-end differentiators able to steal customers with better product attributes
blue ocean correct answer Find/create uncontested market spaces
Make comps irrelevant
Create/capture new demand
Break value—cost tradeoff
Pursue low cost & diff?
Board of Directors correct answer be well informed about the firm's performance
provide insight and advice to management
ACCURATE ANSWERS
3 levels of culture correct answer artifacts: Visual organizational structures and
processes
values:Strategies, goals, organizational philosophies
assumptions: Unconscious, taken-for-granted beliefs, perceptions, thoughts, and
feelings
3 Strategic Questions correct answer 1.What is
the firm's present situation?
2. What direction to head and what performance targets to set?
3. How to run the firm in ways that produce good results?
5 Elements of strategy correct answer 1. Arenas
2. Vehicles
3. Differentiators
4. Staging
5. Economic Logic
5 Generic Strategic Positions correct answer 1. Low cost
2. best cost
,3. focused cost leadership
4. broad differentiation
5. focused differentiation
5 P's of strategy correct answer 1. Plan
2. Ploy
3. Pattern
4. Position
5. Perspective
6th: Process
A Company's Strategy-Making Hierarchy correct answer 1. Corporate
2.Business
3.Functional Area
4. Operating
A firm is diversified when it correct answer operates in two or more lines of
business that are in distinctly different industries; can also be when firm branches
out geographically
multiple products or broad regions
, acquisition correct answer One firm buys controlling interest in another firm with
the intent of making the acquired firm a subsidiary business within its portfolio
Balance Scorecard correct answer Combines both strategic and financial
objectives; gives management a view of performance across multiple objectives
and stakeholders
Best Value correct answer Deliver superior value by meeting or exceeding buyer
expectations on product attributes & beating their price expectations
Between pursuing a low-cost advantage and a differentiation advantage
best value risk correct answer Low-cost firms able to lure customers away with
lower prices
High-end differentiators able to steal customers with better product attributes
blue ocean correct answer Find/create uncontested market spaces
Make comps irrelevant
Create/capture new demand
Break value—cost tradeoff
Pursue low cost & diff?
Board of Directors correct answer be well informed about the firm's performance
provide insight and advice to management
