MBA 705 - Exam 1 #1 Questions with Correct Answers
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.
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.
