©THEBRIGHTSTARS 2024
SGMA 591: Strategy and Global
Management. Exam Questions With Correct
Answers
Chapter 1 - answer✔Concept of strategy
What's the problem with strategy? (2) - answer✔- too many corporate executives , including
CEOs cannot summarize their company strategy
- If they can, they are not sure if people throughout the ranks understand it in the same way they
do
Two components of strategy: - answer✔- the mission
- the vision
The mission statement: - answer✔- A mission statement focuses on today and what an
organization does to achieve its vision
- It is what a company does (the core of the business)
The vision statement: - answer✔- Focuses on tomorrow and gives an organization direction
Strategy: - answer✔- Is a company's competitive game plan that helps the company figure out
the best way to get from here to there or find a path (which may be unforeseeable) to achieve its
vision
The basic elements of a strategy statement: (3) - answer✔- Corporate objectives (ends)
- Scope (domain)
- Competitive advantage (means)
The corporate objective: - answer✔- Defines the ends that the strategy is designed to achieve
within a specific time frame
, ©THEBRIGHTSTARS 2024
- A single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time bound
The scope: - answer✔- Is the domain of the business, the part of the business landscape in
which your company will operate
The competitive advantage: - answer✔- Is the essence of your strategy. it determines what you
will do differently or better than the competition to achieve your objective
What is objective? (more specifically) - answer✔- A single precise goal that will drive the
company
- SMART: specific, measurable, actionable, realistic, time bound
What is objective not? (more specifically) - answer✔- The same as the mission or vision
- Generic (ex. we seek to grow profitability)
What is Scope? (more specifically) (4) - answer✔Where the company competes along three
dimensions
- Product diversification (horizontal expansion)
- Vertical integration (forward or backward expansion)
- Geographic scope (geographic or global expansion)
+ clear about where the company will not compete
Vertical integration: - answer✔- forward: closer to the consumer (ex. Tesla owns its own
stores)
- backward: closer to the manufacturing side (Tesla battery)
What is scope not? - answer✔- A precise prescription for what to do within the specified
bounds. In fact, the scope of a company encourages experimentation and initiative
, ©THEBRIGHTSTARS 2024
Restructuring and break-ups: corporate growth through divestitures, splits, and spin-offs -
answer✔lecture 1 slide 16
divestitures: selling a subsidiary
splits: splitting into two companies
spin off: type of divesture where the spin off company is supposed to be worth more on it's own
than as part of a whole
Two parts of competitive advantage: - answer✔- unique activities
- value proposition
Unique activities: - answer✔- A description of how internal activities must be aligned so that
only your company can deliver the customer value proposition
Value proposition: - answer✔- Is what makes a business unique and potentially better than the
competition. It is made up of features and benefits.
Competitive advantage example: - answer✔Walmart:
- stripped away department store amenities
- put fewer sales people on the floor
- served customers in isolated rural towns which everyone else was ignoring
- Promise national brands rather than second-tier brands
Unique activities and value proposition example: - answer✔- IKEA
How is strategy actually made? (3) - answer✔First, intended strategy: carefully thought out by
top management (top down, emphasize commitment)
Second, emergent strategy: an unplanned approach to overcome the unexpected challenges and
opportunities (bottom up, emphasize flexibility)
Lastly, realized strategy : the actual strategy that is implemented
Tesla's intended and realized strategy: - answer✔1. build sports car
2. Use that money to build an affordable car
3. Use that money to build an even more affordable car
SGMA 591: Strategy and Global
Management. Exam Questions With Correct
Answers
Chapter 1 - answer✔Concept of strategy
What's the problem with strategy? (2) - answer✔- too many corporate executives , including
CEOs cannot summarize their company strategy
- If they can, they are not sure if people throughout the ranks understand it in the same way they
do
Two components of strategy: - answer✔- the mission
- the vision
The mission statement: - answer✔- A mission statement focuses on today and what an
organization does to achieve its vision
- It is what a company does (the core of the business)
The vision statement: - answer✔- Focuses on tomorrow and gives an organization direction
Strategy: - answer✔- Is a company's competitive game plan that helps the company figure out
the best way to get from here to there or find a path (which may be unforeseeable) to achieve its
vision
The basic elements of a strategy statement: (3) - answer✔- Corporate objectives (ends)
- Scope (domain)
- Competitive advantage (means)
The corporate objective: - answer✔- Defines the ends that the strategy is designed to achieve
within a specific time frame
, ©THEBRIGHTSTARS 2024
- A single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time bound
The scope: - answer✔- Is the domain of the business, the part of the business landscape in
which your company will operate
The competitive advantage: - answer✔- Is the essence of your strategy. it determines what you
will do differently or better than the competition to achieve your objective
What is objective? (more specifically) - answer✔- A single precise goal that will drive the
company
- SMART: specific, measurable, actionable, realistic, time bound
What is objective not? (more specifically) - answer✔- The same as the mission or vision
- Generic (ex. we seek to grow profitability)
What is Scope? (more specifically) (4) - answer✔Where the company competes along three
dimensions
- Product diversification (horizontal expansion)
- Vertical integration (forward or backward expansion)
- Geographic scope (geographic or global expansion)
+ clear about where the company will not compete
Vertical integration: - answer✔- forward: closer to the consumer (ex. Tesla owns its own
stores)
- backward: closer to the manufacturing side (Tesla battery)
What is scope not? - answer✔- A precise prescription for what to do within the specified
bounds. In fact, the scope of a company encourages experimentation and initiative
, ©THEBRIGHTSTARS 2024
Restructuring and break-ups: corporate growth through divestitures, splits, and spin-offs -
answer✔lecture 1 slide 16
divestitures: selling a subsidiary
splits: splitting into two companies
spin off: type of divesture where the spin off company is supposed to be worth more on it's own
than as part of a whole
Two parts of competitive advantage: - answer✔- unique activities
- value proposition
Unique activities: - answer✔- A description of how internal activities must be aligned so that
only your company can deliver the customer value proposition
Value proposition: - answer✔- Is what makes a business unique and potentially better than the
competition. It is made up of features and benefits.
Competitive advantage example: - answer✔Walmart:
- stripped away department store amenities
- put fewer sales people on the floor
- served customers in isolated rural towns which everyone else was ignoring
- Promise national brands rather than second-tier brands
Unique activities and value proposition example: - answer✔- IKEA
How is strategy actually made? (3) - answer✔First, intended strategy: carefully thought out by
top management (top down, emphasize commitment)
Second, emergent strategy: an unplanned approach to overcome the unexpected challenges and
opportunities (bottom up, emphasize flexibility)
Lastly, realized strategy : the actual strategy that is implemented
Tesla's intended and realized strategy: - answer✔1. build sports car
2. Use that money to build an affordable car
3. Use that money to build an even more affordable car
