©THEBRIGHTSTARS 2024
SGMA 591 Midterm Exam Questions
With Correct Answers
What are the common elements in successful strategies? - answer✔effective implementation
- simple consistent, long-term goals
- profound understanding of the competitive environment
- objective appraisal of resources
What was the evolution of strategic management? - answer✔- 1950s: Financial budgeting
- 1960s: corporate planning (medium term and economic forecasts)
- 1970s: Emergence of strategic management (industry analysis and competitive positioning)
- 1980s & 90s: The quest for competitive advantage (resources and capabilities; shareholder
value maximization; refocusing, outsourcing, cost cutting)
-2000s-2010s: Adapting to Turbulence (exploiting info and communication technology;
flexibility and strategic innovation; strategic alliances; social and environmental responsibility)
What is the overview of a corporate strategy? - answer✔where to compete - industry
attractiveness - which industries should we be in?
What is the overview of a business strategy? - answer✔how do I win - competitive advantage -
how should we compete?
What is the strategy heirarchy? - answer✔corporate strategy -> business strategy -> functional
area strategies -> operating strategies
What aspects are included in strategy as positioning? - answer✔Where are we competing?
- product scope
- geographical
- vertical scope
How are we competing?
, ©THEBRIGHTSTARS 2024
- what is the basis of our competitive advantage?
Competing for the present
What aspects are included in strategy as direction? - answer✔What do we want to become?
- vision statement
What do we want to achieve?
- mission statement
- performance goals
How will we get there?
- guidelines for development
- priorities for capital expenditures, R&D
- growth modes: organic, M&A, alliances
What is a mission statement? - answer✔focuses on today and why the organization exists.
What they do/core of the business
What is a vision statement? - answer✔focuses on tomorrow and gives an organization direction
(Where do we go from here?)
- guiding philosophy
What are some components of a vision statement? - answer✔-should significantly stretch the
resources and capabilities of the firm
- should inspire people in the organization to achieve things they never thought possible
- should unite people toward one common goal
What are the components of a mission statement? - answer✔- short, to the point
- why org exists and what it is to achieve
- how org will serve those affected by its work
What are the three basic elements of strategy? - answer✔- corporate objective = ends (what is
the corp trying to achieve?)
- scope = domain (part of the business landscape in which your company will operate)
- competitive advantage = means (what will you do differently or better than competitors?)
What is a corporate object and what is it not? - answer✔is:
, ©THEBRIGHTSTARS 2024
- a single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time-bound
is not:
- the same a mission or vision
- generic
What is scope? - answer✔What business are we really in?
- may be larger than initially expected
What are the two components of competitive advantage? - answer✔- unique activities: aligned
internal activities to deliver the customer value proposition
- value proposition: why customers should buy your products or services over alternatives
Can strategy be planned? - answer✔planning can program strategies, but not generate them. It
can make strategies operational
What are the three steps of strategic programming? - answer✔- codification
- elaboration
- conversion of strategies
What is an intended strategy? - answer✔carefully thought out by top management (top down,
emphasize commitment)
What is an emergent strategy? - answer✔an unplanned approach to overcome the unexpected
challenges and opportunities (bottom up; emphasize flexibility)
How does strategy perform as decision support? - answer✔improves the quality of decision
making
How does strategy perform as a coordinating device? - answer✔creates consistency and unity
How does strategy perform as a target? - answer✔improves performance by setting high
aspirations
how does strategy perform as animation and orientation? - answer✔Motivates and mobilizes
What are two drawbacks of the CSR approach? - answer✔- businesses are pit against society
despite being interdependent
- companies think of CSR in generic ways instead of in the way most appropriate to each firm's
strategy
SGMA 591 Midterm Exam Questions
With Correct Answers
What are the common elements in successful strategies? - answer✔effective implementation
- simple consistent, long-term goals
- profound understanding of the competitive environment
- objective appraisal of resources
What was the evolution of strategic management? - answer✔- 1950s: Financial budgeting
- 1960s: corporate planning (medium term and economic forecasts)
- 1970s: Emergence of strategic management (industry analysis and competitive positioning)
- 1980s & 90s: The quest for competitive advantage (resources and capabilities; shareholder
value maximization; refocusing, outsourcing, cost cutting)
-2000s-2010s: Adapting to Turbulence (exploiting info and communication technology;
flexibility and strategic innovation; strategic alliances; social and environmental responsibility)
What is the overview of a corporate strategy? - answer✔where to compete - industry
attractiveness - which industries should we be in?
What is the overview of a business strategy? - answer✔how do I win - competitive advantage -
how should we compete?
What is the strategy heirarchy? - answer✔corporate strategy -> business strategy -> functional
area strategies -> operating strategies
What aspects are included in strategy as positioning? - answer✔Where are we competing?
- product scope
- geographical
- vertical scope
How are we competing?
, ©THEBRIGHTSTARS 2024
- what is the basis of our competitive advantage?
Competing for the present
What aspects are included in strategy as direction? - answer✔What do we want to become?
- vision statement
What do we want to achieve?
- mission statement
- performance goals
How will we get there?
- guidelines for development
- priorities for capital expenditures, R&D
- growth modes: organic, M&A, alliances
What is a mission statement? - answer✔focuses on today and why the organization exists.
What they do/core of the business
What is a vision statement? - answer✔focuses on tomorrow and gives an organization direction
(Where do we go from here?)
- guiding philosophy
What are some components of a vision statement? - answer✔-should significantly stretch the
resources and capabilities of the firm
- should inspire people in the organization to achieve things they never thought possible
- should unite people toward one common goal
What are the components of a mission statement? - answer✔- short, to the point
- why org exists and what it is to achieve
- how org will serve those affected by its work
What are the three basic elements of strategy? - answer✔- corporate objective = ends (what is
the corp trying to achieve?)
- scope = domain (part of the business landscape in which your company will operate)
- competitive advantage = means (what will you do differently or better than competitors?)
What is a corporate object and what is it not? - answer✔is:
, ©THEBRIGHTSTARS 2024
- a single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time-bound
is not:
- the same a mission or vision
- generic
What is scope? - answer✔What business are we really in?
- may be larger than initially expected
What are the two components of competitive advantage? - answer✔- unique activities: aligned
internal activities to deliver the customer value proposition
- value proposition: why customers should buy your products or services over alternatives
Can strategy be planned? - answer✔planning can program strategies, but not generate them. It
can make strategies operational
What are the three steps of strategic programming? - answer✔- codification
- elaboration
- conversion of strategies
What is an intended strategy? - answer✔carefully thought out by top management (top down,
emphasize commitment)
What is an emergent strategy? - answer✔an unplanned approach to overcome the unexpected
challenges and opportunities (bottom up; emphasize flexibility)
How does strategy perform as decision support? - answer✔improves the quality of decision
making
How does strategy perform as a coordinating device? - answer✔creates consistency and unity
How does strategy perform as a target? - answer✔improves performance by setting high
aspirations
how does strategy perform as animation and orientation? - answer✔Motivates and mobilizes
What are two drawbacks of the CSR approach? - answer✔- businesses are pit against society
despite being interdependent
- companies think of CSR in generic ways instead of in the way most appropriate to each firm's
strategy
