GMS 200 Review Questions and
Answers(GRADED A)
Competitive Advantage - ANSWER Operating with an attribute or set of attributes that
allows an organization to outperform its rivals
Sustainable Competitive Advantage - ANSWER One that is difficult for competitors to
imitate
Strategy - ANSWER A comprehensive action plan that identifies long-term direction for
an organization and guides resources utilization to accomplish organization goals with
sustainable competitive advantage
Strategic Intent - ANSWER Focusing all organization energies on unifying and
compelling goal
Goals of Strategic Management - ANSWER is to create above-average returns for
investors. Returns exceeding those for alternative opportunities at equivalent risk.
Earning above-average returns depends in part on the organization's competitive
environment.
Strategic Management - ANSWER The process of formulating and implementing
strategies to accomplish long-term goals and sustain competitive advantage. 3 Steps -
Strategic Analysis, Formulation, and implementation
Strategic Analysis - ANSWER Process of analyzing the organization, the environment,
its competitive position and current strategies
Strategic formulation - ANSWER The process of crafting strategies to guide allocation of
resources
Strategy implementation - ANSWER Putting strategies into action
Drucker's Strategic Question for Strategy Formulation - ANSWER Our Business
mission? Our Customers? What do customers consider value? What is our plan?
Analysis of Mission - ANSWER The reason for an organization's existence. An
important test of the mission is how well it serves the organization's stakeholders.
Analysis of Core Values - ANSWER Values are broad beliefs what is or is not
appropriate. Organizational culture reflects the dominant value system of the
organization as a whole.
,Stability Strategy - ANSWER Maintains current operations without substantial changes
Renewal Strategy - ANSWER Tries to solve problems and overcome weaknesses that
are hurting performance
Combination Strategy - ANSWER Purses growth, stability, or retrenchment in some
Growth Strategies - ANSWER Concentration & Diversification strategies
Diversification Strategies - ANSWER Related & unrelated diversification. Vertical
Integration.
Restructuring strategies - ANSWER Tries to correct weaknesses by changing the mix or
reducing the scale of operations. Restructuring through turnaround, downsizing, or
divestiture
Globalization Strategy - ANSWER World is one larger market
standardized products and advertising as much as possible. Ethnocentric View -
ANSWER ...
Mutidomestic Strategy - ANSWER Customize products and advertising to local markets
as much as possible. Polycentric View
Transnational Strategy - ANSWER Balance efficiencies in global operations and
responsiveness to local markets. Geocentric View
Strategic Alliances - ANSWER Two or more organizations partner to pursue an area of
mutual interest
Types of Strategic Alliances - ANSWER Outsourcing, Supplier or Distribution alliances,
and Co-opetition
E-Business Strategies - ANSWER The strategic use of the Internet to gain competitive
advantage. B2B & B2C (business to customers)
Web-Based business models - ANSWER Brokerage, Advertising, Merchant,
Subscription, Informediary, or community model
Portfolio Planning - ANSWER Seeks the best mix of investments among alternative
business opportunities
BCG Matrix - ANSWER Ties strategy formulation to analysis of business opportunities
according to - Industry or Market Growth Rate (Low Vs. High), and Market share (Low
Vs. High)
, BCG Matrix analyzes - ANSWER business opportunities according to the market growth
rate and market share
Stars - ANSWER High share/High growth business. Preferred Strategy - growth
Cash Cows - ANSWER High share/Low Growth business. Preferred Strategy - Stability
or modest growth.
Question Marks - ANSWER Low Share/High Growth businesses. Preferred Strategy -
Growth for promising question marks and restricting or divestiture for others
Dogs - ANSWER Low share/Low Growth business. Preferred Strategy - Retrenchment
by divestiture.
Porter's Generic Strategies Model - ANSWER Business-Level strategic decisions,
Business-Level strategic decisions are driven by: Market Scope & source of competitive
advantage
Market Scope & Source of Competitive Advantage combine to - ANSWER Generate 4
generic strategies. Poters' Strategies for gaining competitive advantage
Porter's strategies for gaining competitive advantage - ANSWER Differentiation
Strategy, Cost Leadership Strategy, Focused differentiation Strategy, Focused Cost
Leadership Strategy
Failure of substance - ANSWER Inadequate attention to major strategic elements
Failures of process - ANSWER Poor handling of strategy implementation - Lack of
participation error & Goal displacement error
Corporate governance - ANSWER System of control and performance monitoring of top
management, done by boards of directors and other major stakeholder representatives,
and increasing emphasis on corporate governance in contemporary business
Strategic Control - ANSWER Making sure strategies are well implemented and poor
strategies are scrapped or modified. Top leadership of a firm or organization is expected
to exercise Strategic Control of the enterprise.
Strategic Leadership - ANSWER Capability to inspire people to successfully engage in
process of continuous change, performance enhancement, and implementation of
organizational strategies
Critical Tasks of Strategic leadership - ANSWER Be a guardian of trade-offs, Create
sense of urgency, Ensure that everyone understands the strategy, and be a teacher
Answers(GRADED A)
Competitive Advantage - ANSWER Operating with an attribute or set of attributes that
allows an organization to outperform its rivals
Sustainable Competitive Advantage - ANSWER One that is difficult for competitors to
imitate
Strategy - ANSWER A comprehensive action plan that identifies long-term direction for
an organization and guides resources utilization to accomplish organization goals with
sustainable competitive advantage
Strategic Intent - ANSWER Focusing all organization energies on unifying and
compelling goal
Goals of Strategic Management - ANSWER is to create above-average returns for
investors. Returns exceeding those for alternative opportunities at equivalent risk.
Earning above-average returns depends in part on the organization's competitive
environment.
Strategic Management - ANSWER The process of formulating and implementing
strategies to accomplish long-term goals and sustain competitive advantage. 3 Steps -
Strategic Analysis, Formulation, and implementation
Strategic Analysis - ANSWER Process of analyzing the organization, the environment,
its competitive position and current strategies
Strategic formulation - ANSWER The process of crafting strategies to guide allocation of
resources
Strategy implementation - ANSWER Putting strategies into action
Drucker's Strategic Question for Strategy Formulation - ANSWER Our Business
mission? Our Customers? What do customers consider value? What is our plan?
Analysis of Mission - ANSWER The reason for an organization's existence. An
important test of the mission is how well it serves the organization's stakeholders.
Analysis of Core Values - ANSWER Values are broad beliefs what is or is not
appropriate. Organizational culture reflects the dominant value system of the
organization as a whole.
,Stability Strategy - ANSWER Maintains current operations without substantial changes
Renewal Strategy - ANSWER Tries to solve problems and overcome weaknesses that
are hurting performance
Combination Strategy - ANSWER Purses growth, stability, or retrenchment in some
Growth Strategies - ANSWER Concentration & Diversification strategies
Diversification Strategies - ANSWER Related & unrelated diversification. Vertical
Integration.
Restructuring strategies - ANSWER Tries to correct weaknesses by changing the mix or
reducing the scale of operations. Restructuring through turnaround, downsizing, or
divestiture
Globalization Strategy - ANSWER World is one larger market
standardized products and advertising as much as possible. Ethnocentric View -
ANSWER ...
Mutidomestic Strategy - ANSWER Customize products and advertising to local markets
as much as possible. Polycentric View
Transnational Strategy - ANSWER Balance efficiencies in global operations and
responsiveness to local markets. Geocentric View
Strategic Alliances - ANSWER Two or more organizations partner to pursue an area of
mutual interest
Types of Strategic Alliances - ANSWER Outsourcing, Supplier or Distribution alliances,
and Co-opetition
E-Business Strategies - ANSWER The strategic use of the Internet to gain competitive
advantage. B2B & B2C (business to customers)
Web-Based business models - ANSWER Brokerage, Advertising, Merchant,
Subscription, Informediary, or community model
Portfolio Planning - ANSWER Seeks the best mix of investments among alternative
business opportunities
BCG Matrix - ANSWER Ties strategy formulation to analysis of business opportunities
according to - Industry or Market Growth Rate (Low Vs. High), and Market share (Low
Vs. High)
, BCG Matrix analyzes - ANSWER business opportunities according to the market growth
rate and market share
Stars - ANSWER High share/High growth business. Preferred Strategy - growth
Cash Cows - ANSWER High share/Low Growth business. Preferred Strategy - Stability
or modest growth.
Question Marks - ANSWER Low Share/High Growth businesses. Preferred Strategy -
Growth for promising question marks and restricting or divestiture for others
Dogs - ANSWER Low share/Low Growth business. Preferred Strategy - Retrenchment
by divestiture.
Porter's Generic Strategies Model - ANSWER Business-Level strategic decisions,
Business-Level strategic decisions are driven by: Market Scope & source of competitive
advantage
Market Scope & Source of Competitive Advantage combine to - ANSWER Generate 4
generic strategies. Poters' Strategies for gaining competitive advantage
Porter's strategies for gaining competitive advantage - ANSWER Differentiation
Strategy, Cost Leadership Strategy, Focused differentiation Strategy, Focused Cost
Leadership Strategy
Failure of substance - ANSWER Inadequate attention to major strategic elements
Failures of process - ANSWER Poor handling of strategy implementation - Lack of
participation error & Goal displacement error
Corporate governance - ANSWER System of control and performance monitoring of top
management, done by boards of directors and other major stakeholder representatives,
and increasing emphasis on corporate governance in contemporary business
Strategic Control - ANSWER Making sure strategies are well implemented and poor
strategies are scrapped or modified. Top leadership of a firm or organization is expected
to exercise Strategic Control of the enterprise.
Strategic Leadership - ANSWER Capability to inspire people to successfully engage in
process of continuous change, performance enhancement, and implementation of
organizational strategies
Critical Tasks of Strategic leadership - ANSWER Be a guardian of trade-offs, Create
sense of urgency, Ensure that everyone understands the strategy, and be a teacher
