Glo-Bus-Strategy Exam1 with Answers
100% Correct
What is a company's Strategy? - ANSWER -consists of the competitive moves and
business approaches that managers employ to attract and please customers, compete
successfully, capitalize on opportunities to grow the business, respond to changing
market conditions, conduct operations, and achieve the targeted financial and market
performance
How does a company compete differently? - ANSWER -by having a creative, distinctive
strategy that sets a company apart from rivals and delivers superior value to customers
is a company's most reliable ticket for winning a competitive advantage over rivals
How does a company achieve a competitive advantage? - ANSWER -when an
attractive number of buyers are drawn to purchase its products or services rather than
those of competitors.
IE. Low cost provider, higher quality, more selection, more value, narrow market niche,
expertise and resource strengths.
How does a company achieve sustainable competitive advantage - ANSWER -when the
basis for buyer preferences for its product offering relative to the offerings of its rivals is
durable, despite competitors' efforts to nullify or overcome the appeal of its product
offering.
Evolving Company Strategy - ANSWER -changing circumstances and ongoing
management efforts to improve the strategy cause a company's strategy to evolve over
time-a condition that makes the task of crafting a strategy a work in progress, not a one-
time event.
Proactive Strategy Elements - ANSWER -new initiatives plus ongoing strategy elements
continued form prior periods
Reactive Strategy Elements - ANSWER Adaptive reactions to changing circumstances
How is a strategy ethical? - ANSWER 1) it does not entail actions and behaviors that
cross the line from "should do" to "should not do" (because such actions are "unsavory",
unconscionable, injurious to other people, or unnecessarily harmful to the environment);
and
2) it allows management to fulfill its ethical duties in a manner that takes into account
the legitimate interests of all stakeholders- owners/shareholders, employees,
customers, suppliers, the communities in which it operates, and society at large
, What is a company's Business Model & its core elements? - ANSWER -is
management's blueprint for delivering a valuable product or service to customers in a
manner that will generate ample revenues to cover costs and yield an attractive profit.
1)Value Proposition: company's approach to satisfying buyer needs and requirements at
a price they will consider a good value.
2)Profit Proposition: concerns a company's business approach, the means of generating
revenues, and the principal resources and operating systems that will be employed to
create and deliver the intended customer value in a cost-effecient manner and the
company's consequent abiity to charge a price for the value provided to customers that
produces acceptable profit levels.
Elements of a "winning strategy"? - ANSWER -(1)must fit the enterprise's external and
internal situation,
(2) help build sustainable competitive advantage,
(3) and improve company performance
"the best test" of managerial excellence? - ANSWER -the level at which a company's
strategy is conceived and how competently the strategy is executed are directly
correlated to a company's success within a given market.
*Excellent execution of an excellent strategy is the best test of managerial excellence*
5 managerial tasks for crafting and executing a company's strategy - ANSWER 1)
Developing a strategic vision: that charts the company's long-term direction, a mission
statement that describes the company's business, and a set of core values to guide the
pursuit of the vision and mission.
2) Setting objectives: and using them as yardsticks for measuring the company's
performance and the progress it is making in achieving the intended strategic vision and
mission.
3) Crafting a strategy: to achieve the objectives and move the company along the
strategic course management has charted.
4) Implementing and executing the chosen strategy efficiently and effectively.
5) Monitoring developments, evaluating performance, and initiating corrective
adjustments in the company's long-term direction, objectives, strategy, or execution in
light of actual experience, changing conditions, fresh managerial ideas for improving the
strategy, and newly emerging market opportunities.
Strategic Vision - ANSWER -describes the route a company intends to take in
developing and strengthening its business. It lays out the company's strategic course in
preparing for the future. It communicates management's aspirations to stakeholders and
helps steer the energies of company personnel in a common direction.
*A strategic vision can usually be adequately stated in less than a page, and managers
should be able to explain it to company personnel and outsiders in five to ten minutes.
Vision Statement - ANSWER -should clearly convey a company's long-term direction,
rather than hide it in foggy language
100% Correct
What is a company's Strategy? - ANSWER -consists of the competitive moves and
business approaches that managers employ to attract and please customers, compete
successfully, capitalize on opportunities to grow the business, respond to changing
market conditions, conduct operations, and achieve the targeted financial and market
performance
How does a company compete differently? - ANSWER -by having a creative, distinctive
strategy that sets a company apart from rivals and delivers superior value to customers
is a company's most reliable ticket for winning a competitive advantage over rivals
How does a company achieve a competitive advantage? - ANSWER -when an
attractive number of buyers are drawn to purchase its products or services rather than
those of competitors.
IE. Low cost provider, higher quality, more selection, more value, narrow market niche,
expertise and resource strengths.
How does a company achieve sustainable competitive advantage - ANSWER -when the
basis for buyer preferences for its product offering relative to the offerings of its rivals is
durable, despite competitors' efforts to nullify or overcome the appeal of its product
offering.
Evolving Company Strategy - ANSWER -changing circumstances and ongoing
management efforts to improve the strategy cause a company's strategy to evolve over
time-a condition that makes the task of crafting a strategy a work in progress, not a one-
time event.
Proactive Strategy Elements - ANSWER -new initiatives plus ongoing strategy elements
continued form prior periods
Reactive Strategy Elements - ANSWER Adaptive reactions to changing circumstances
How is a strategy ethical? - ANSWER 1) it does not entail actions and behaviors that
cross the line from "should do" to "should not do" (because such actions are "unsavory",
unconscionable, injurious to other people, or unnecessarily harmful to the environment);
and
2) it allows management to fulfill its ethical duties in a manner that takes into account
the legitimate interests of all stakeholders- owners/shareholders, employees,
customers, suppliers, the communities in which it operates, and society at large
, What is a company's Business Model & its core elements? - ANSWER -is
management's blueprint for delivering a valuable product or service to customers in a
manner that will generate ample revenues to cover costs and yield an attractive profit.
1)Value Proposition: company's approach to satisfying buyer needs and requirements at
a price they will consider a good value.
2)Profit Proposition: concerns a company's business approach, the means of generating
revenues, and the principal resources and operating systems that will be employed to
create and deliver the intended customer value in a cost-effecient manner and the
company's consequent abiity to charge a price for the value provided to customers that
produces acceptable profit levels.
Elements of a "winning strategy"? - ANSWER -(1)must fit the enterprise's external and
internal situation,
(2) help build sustainable competitive advantage,
(3) and improve company performance
"the best test" of managerial excellence? - ANSWER -the level at which a company's
strategy is conceived and how competently the strategy is executed are directly
correlated to a company's success within a given market.
*Excellent execution of an excellent strategy is the best test of managerial excellence*
5 managerial tasks for crafting and executing a company's strategy - ANSWER 1)
Developing a strategic vision: that charts the company's long-term direction, a mission
statement that describes the company's business, and a set of core values to guide the
pursuit of the vision and mission.
2) Setting objectives: and using them as yardsticks for measuring the company's
performance and the progress it is making in achieving the intended strategic vision and
mission.
3) Crafting a strategy: to achieve the objectives and move the company along the
strategic course management has charted.
4) Implementing and executing the chosen strategy efficiently and effectively.
5) Monitoring developments, evaluating performance, and initiating corrective
adjustments in the company's long-term direction, objectives, strategy, or execution in
light of actual experience, changing conditions, fresh managerial ideas for improving the
strategy, and newly emerging market opportunities.
Strategic Vision - ANSWER -describes the route a company intends to take in
developing and strengthening its business. It lays out the company's strategic course in
preparing for the future. It communicates management's aspirations to stakeholders and
helps steer the energies of company personnel in a common direction.
*A strategic vision can usually be adequately stated in less than a page, and managers
should be able to explain it to company personnel and outsiders in five to ten minutes.
Vision Statement - ANSWER -should clearly convey a company's long-term direction,
rather than hide it in foggy language
