BSG Exam 1 Questions And Answers
(Updated And Verified)
Strategy
the set of actions that managers take to outperform competitors and achieve competitive advantage
strategic management
the analysis, decisions and actions (ADA) an organization undertakes in order to create and sustain
competitive advantage
competitive advantage
a firms ability to create value in a way that rivals cannot
sustainable competitive advantage
elements of the strategy that gives buyers lasting reasons to prefer a company's products or services
over those of competitors
operational effectiveness
performing similar activities better than rivals
deliberate strategy
proactive strategy elements that are both planned and realized as planned
emergent strategy
reactive strategy elects that emerge as changing conditions warrant
business model
managements blueprint for delivering a valuable product or service to customers in a manner that will
generate revenue sufficient to cover costs and yield an attractive profit
two elements of company's business model
1) customer value proposition
2) profit formula
Customer value proposition
V-P
(Customer value) - (product price)
Profit Formula
P-C
(product price) - (per-unit cost)
winning strategy
1) fit test
2) the competitive advantage test
3) the performance test
, the fit test
"how well does the strategy fit the company's situation?"
Must exhibit good internal and external fit
the competitive advantage test
"is the strategy helping the company achieve a sustainable competitive advantage?"
the performance test
"is the strategy producing superior company performance?"
strategic vision
charts the company's long-term direction and aspirations for the future
mission statement
describes the company's purpose (who, what and why)
values
the actions (beliefs, traits, and behavioral norms) that employees are expected to display in
conducting the firms business and in pursuing its end state
objectives
should be quantifiable, measurable and have a deadline.
-focus efforts and align actions throughout the organization
-yardsticks for tracking company progress
stretch objectives
motivate employees to expend greater effort and perform at a high level
strategic intent
when a company relentlessly pursues an ambitious strategic objective, concentrating the full force of
its resources and competitive actions on achieving that objective
financial objective
-relate to the financial performance targets management has established to achieve
-focused internally on the firm's operations and activities
strategic objectives
relate to target outcomes that indicate a company's stretching its market standing, competitive
position and future business prospects
Balanca scorecard
combining the use of both strategic and financial objectives, tracking their achievement, and going
management a more balanced view of how well and organization is performing
(Updated And Verified)
Strategy
the set of actions that managers take to outperform competitors and achieve competitive advantage
strategic management
the analysis, decisions and actions (ADA) an organization undertakes in order to create and sustain
competitive advantage
competitive advantage
a firms ability to create value in a way that rivals cannot
sustainable competitive advantage
elements of the strategy that gives buyers lasting reasons to prefer a company's products or services
over those of competitors
operational effectiveness
performing similar activities better than rivals
deliberate strategy
proactive strategy elements that are both planned and realized as planned
emergent strategy
reactive strategy elects that emerge as changing conditions warrant
business model
managements blueprint for delivering a valuable product or service to customers in a manner that will
generate revenue sufficient to cover costs and yield an attractive profit
two elements of company's business model
1) customer value proposition
2) profit formula
Customer value proposition
V-P
(Customer value) - (product price)
Profit Formula
P-C
(product price) - (per-unit cost)
winning strategy
1) fit test
2) the competitive advantage test
3) the performance test
, the fit test
"how well does the strategy fit the company's situation?"
Must exhibit good internal and external fit
the competitive advantage test
"is the strategy helping the company achieve a sustainable competitive advantage?"
the performance test
"is the strategy producing superior company performance?"
strategic vision
charts the company's long-term direction and aspirations for the future
mission statement
describes the company's purpose (who, what and why)
values
the actions (beliefs, traits, and behavioral norms) that employees are expected to display in
conducting the firms business and in pursuing its end state
objectives
should be quantifiable, measurable and have a deadline.
-focus efforts and align actions throughout the organization
-yardsticks for tracking company progress
stretch objectives
motivate employees to expend greater effort and perform at a high level
strategic intent
when a company relentlessly pursues an ambitious strategic objective, concentrating the full force of
its resources and competitive actions on achieving that objective
financial objective
-relate to the financial performance targets management has established to achieve
-focused internally on the firm's operations and activities
strategic objectives
relate to target outcomes that indicate a company's stretching its market standing, competitive
position and future business prospects
Balanca scorecard
combining the use of both strategic and financial objectives, tracking their achievement, and going
management a more balanced view of how well and organization is performing
