WPC 480 definitions ch 1-6 Exam With
Complete Solutions
an integrative management field that combines analysis, formulation and implementation in the
quest for competitive advantage
strategic management
a set of goal directed actions a firm takes to gain and sustain superior performance relative to
competitors
strategy
a strategy that enables a firm to achieve superior performance and contains three elements
good strategy
what are the three elements of a good strategy
diagnosis of the competitive challenge
a guiding policy to address the competitive challenge
a set of coherent actions to implement a firm's guiding policy
superior performance relative to other competitors in the same industry or the industry average
competitive advantage
outperforming competitors or the industry average over a prolonged period of time (Apple for
example)
sustainable competitive advantage
underperformance relative to other competitors in the same industry or the industry average
competitive disadvantage
performance of two or more firms at the same level
competitive parity
managers achieve combinations of value and cost through
strategic positioning
the greater the difference between value creation and cost, the greater the firm's
economic contribution and more likely to gain competitive advantage
what three things are not strategy
grandiose statements
failure to face a competitive challenge
operation effectiveness, competitive benchmarking, other tactical tools
the first step to gain and sustain a competitive advantage is to define an organization's
vision
mission
,values
what do we want to accomplish ultimately?
captures the company's aspiration
vision
how do we accomplish our goals?
mission
what commitment do we make and what guardrails do we put in place to act both legally and
ethically as we pursue our vision and mission?
values
a stretch goal that pervades the organization with a sense of winning, it aims to achieve by building
the necessary resources and capabilities through continuous learing
strategic intent
vision statement that allows companies to adapt to changing environments
customer oriented
vision statement that focuses employees on improving existing products and service without
consideration of underlying customer problems to be solved
product oriented
vision statement that tends to force managers to take a more myopic view of the competitive
landscape ; defines a business in terms of a good or service provided
product oriented
a positive relationship between vision statements and firm performance is more likely to exist under
certain circumstances:
visions are customer-oriented
internal stakeholders are invested in defining the vision
organizational structures such as compensation systems align with the firm's vision statement
statement of principles to guide an organization as it works to achieve its vision and fulfill its mission
for both internal conduct and external interactions; it often includes explicit ethical considerations
core values statment
ethical standards and norms that govern the behavior of individuals within a firm or organization
organizational core values
a model that links three interdependent strategic management tasks - analyze, formulate, implement
- together to help managers plan and implement a strategy that can improve performance and result
in competitive advantage
AFI strategy framework
, a good strategy is more likely when strategic leaders apply the three step AFI strategy framework:
analyze the external and internal environments
formulate an appropriate business and corporate strategy
implement the formulated strategy through structure, culture, and controls
how do you obtain a competitive advantage?
create more value for customers while keeping cost comparable to competitors or provide the value
equivalent to competitors at a lower cost
which vision statement provides managers with more strategic flexibility
customer oriented vision statment
to be effective, visions and missions need to be backed up by hard-to-reverse ____________ and tied
to ________
strategic commitments, economic fundamentals
executives' use of power and influence to direct the activities of others when pursuing an
organization's goals
strategic leadership
a conceptual framework that views organizational outcomes - strategic choices and performance
levels - as reflections of the values of the members of the top management team
upper echelons theory
a conceptual framework of leadership progression with five distinct sequential levels
level 5 leadership pyramid
high capable individual
level 1
contributing team member
level 2
competent manager
level 3
effective leader
level 4
executive
level 5
makes productive contributions through motivation, talent, knowledge, and skilsl
highly capable individual
Complete Solutions
an integrative management field that combines analysis, formulation and implementation in the
quest for competitive advantage
strategic management
a set of goal directed actions a firm takes to gain and sustain superior performance relative to
competitors
strategy
a strategy that enables a firm to achieve superior performance and contains three elements
good strategy
what are the three elements of a good strategy
diagnosis of the competitive challenge
a guiding policy to address the competitive challenge
a set of coherent actions to implement a firm's guiding policy
superior performance relative to other competitors in the same industry or the industry average
competitive advantage
outperforming competitors or the industry average over a prolonged period of time (Apple for
example)
sustainable competitive advantage
underperformance relative to other competitors in the same industry or the industry average
competitive disadvantage
performance of two or more firms at the same level
competitive parity
managers achieve combinations of value and cost through
strategic positioning
the greater the difference between value creation and cost, the greater the firm's
economic contribution and more likely to gain competitive advantage
what three things are not strategy
grandiose statements
failure to face a competitive challenge
operation effectiveness, competitive benchmarking, other tactical tools
the first step to gain and sustain a competitive advantage is to define an organization's
vision
mission
,values
what do we want to accomplish ultimately?
captures the company's aspiration
vision
how do we accomplish our goals?
mission
what commitment do we make and what guardrails do we put in place to act both legally and
ethically as we pursue our vision and mission?
values
a stretch goal that pervades the organization with a sense of winning, it aims to achieve by building
the necessary resources and capabilities through continuous learing
strategic intent
vision statement that allows companies to adapt to changing environments
customer oriented
vision statement that focuses employees on improving existing products and service without
consideration of underlying customer problems to be solved
product oriented
vision statement that tends to force managers to take a more myopic view of the competitive
landscape ; defines a business in terms of a good or service provided
product oriented
a positive relationship between vision statements and firm performance is more likely to exist under
certain circumstances:
visions are customer-oriented
internal stakeholders are invested in defining the vision
organizational structures such as compensation systems align with the firm's vision statement
statement of principles to guide an organization as it works to achieve its vision and fulfill its mission
for both internal conduct and external interactions; it often includes explicit ethical considerations
core values statment
ethical standards and norms that govern the behavior of individuals within a firm or organization
organizational core values
a model that links three interdependent strategic management tasks - analyze, formulate, implement
- together to help managers plan and implement a strategy that can improve performance and result
in competitive advantage
AFI strategy framework
, a good strategy is more likely when strategic leaders apply the three step AFI strategy framework:
analyze the external and internal environments
formulate an appropriate business and corporate strategy
implement the formulated strategy through structure, culture, and controls
how do you obtain a competitive advantage?
create more value for customers while keeping cost comparable to competitors or provide the value
equivalent to competitors at a lower cost
which vision statement provides managers with more strategic flexibility
customer oriented vision statment
to be effective, visions and missions need to be backed up by hard-to-reverse ____________ and tied
to ________
strategic commitments, economic fundamentals
executives' use of power and influence to direct the activities of others when pursuing an
organization's goals
strategic leadership
a conceptual framework that views organizational outcomes - strategic choices and performance
levels - as reflections of the values of the members of the top management team
upper echelons theory
a conceptual framework of leadership progression with five distinct sequential levels
level 5 leadership pyramid
high capable individual
level 1
contributing team member
level 2
competent manager
level 3
effective leader
level 4
executive
level 5
makes productive contributions through motivation, talent, knowledge, and skilsl
highly capable individual
