SEVI 3013H Exam Questions and
Answers
What is strategy and what are its characteristics? - ANS-- the ideas, decisions, and
actions that enable a firm to succeed
- creating a competitive advantage (firm's resources and capabilities that enable it to
overcome the competitive forces in its industry)
- operational effectiveness (performing similar activities better than rivals)
3 Steps of Strategic Management - ANS-Analysis
- Strategic goals (vision, mission, strategic objectives)
- Internal and external environment
Decisions - Formulation
- What industries should we compete in?
- How should we compete in those industries?
Actions
- Allocate necessary resources
- Design the organization to bring intended strategies to reality
Attributes of Strategic Management - ANS-- Directs the organization toward overall
goals and objectives
- Includes multiple stakeholders in decision making
- Needs to incorporate short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Ambidexterity - ANS-- Focus on long-term effectiveness
-- Expand product-market scope by proactively exploring new opportunities
- At the same time
-- Focus on short-term efficiency
-- Align resources to take advantage of existing product markets
External Control Perspective - ANS-- External forces determine the organization's
success
, ex. economic downturns
Romantic View - ANS-- A leader is the key force in the organization's success
ex. Steve Jobs (Apple)
How leaders make a difference? - ANS-- Be proactive - anticipate change
- Refine strategies continually
- Be aware of external opportunities and threats
- Understand thoroughly the firm's resources and capabilities
- Make strategic management both a process and a way of thinking throughout the
organization
Competitive Advantage - ANS-Organizational effectiveness along with innovations such
as; total quality, just-in-time, benchmarking, business process reengineering, and
outsourcing
Intended Strategy - ANS-- Organizational decisions are determined only by analysis
- Intended strategies rarely survive in the original form
Realized Strategy - ANS-- Decisions are determined by both analysis (deliberate) and
unforeseen environmental developments, unanticipated resource constraints, and/or
changes in managerial preferences (emergent).
Hierarchy of Goals - ANS-Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the
mission statement and that are specific and cover a well-defined time frame
Factors to analyze external environment - ANS-1. The general environment consists of
several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may
threaten the success of a firm's products and services
Corporate - Level Strategy - ANS-What businesses to compete in; how businesses can
be managed to achieve synergy
Business - Level Strategy - ANS-How to compete in a given business to attain
competitive advantage
Answers
What is strategy and what are its characteristics? - ANS-- the ideas, decisions, and
actions that enable a firm to succeed
- creating a competitive advantage (firm's resources and capabilities that enable it to
overcome the competitive forces in its industry)
- operational effectiveness (performing similar activities better than rivals)
3 Steps of Strategic Management - ANS-Analysis
- Strategic goals (vision, mission, strategic objectives)
- Internal and external environment
Decisions - Formulation
- What industries should we compete in?
- How should we compete in those industries?
Actions
- Allocate necessary resources
- Design the organization to bring intended strategies to reality
Attributes of Strategic Management - ANS-- Directs the organization toward overall
goals and objectives
- Includes multiple stakeholders in decision making
- Needs to incorporate short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Ambidexterity - ANS-- Focus on long-term effectiveness
-- Expand product-market scope by proactively exploring new opportunities
- At the same time
-- Focus on short-term efficiency
-- Align resources to take advantage of existing product markets
External Control Perspective - ANS-- External forces determine the organization's
success
, ex. economic downturns
Romantic View - ANS-- A leader is the key force in the organization's success
ex. Steve Jobs (Apple)
How leaders make a difference? - ANS-- Be proactive - anticipate change
- Refine strategies continually
- Be aware of external opportunities and threats
- Understand thoroughly the firm's resources and capabilities
- Make strategic management both a process and a way of thinking throughout the
organization
Competitive Advantage - ANS-Organizational effectiveness along with innovations such
as; total quality, just-in-time, benchmarking, business process reengineering, and
outsourcing
Intended Strategy - ANS-- Organizational decisions are determined only by analysis
- Intended strategies rarely survive in the original form
Realized Strategy - ANS-- Decisions are determined by both analysis (deliberate) and
unforeseen environmental developments, unanticipated resource constraints, and/or
changes in managerial preferences (emergent).
Hierarchy of Goals - ANS-Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the
mission statement and that are specific and cover a well-defined time frame
Factors to analyze external environment - ANS-1. The general environment consists of
several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may
threaten the success of a firm's products and services
Corporate - Level Strategy - ANS-What businesses to compete in; how businesses can
be managed to achieve synergy
Business - Level Strategy - ANS-How to compete in a given business to attain
competitive advantage
