M&S lec 3

Q: What is the mission of a company?

A: The mission answers the questions: Who are we? What do we do? Why are we here? It helps set general goals and creates the company culture.

Q: What should the mission statement include?

A: The mission should include: what products/services the company offers (what they do)

Q: How do you develop a mission statement?

A: To develop a mission statement: clearly identify the company culture

Q: What is the vision of a company?

A: The vision is about the company’s goals for the future

Q: What criteria should a vision meet?

A: The vision should: describe clearly what the company will do (not vague)

Q: How does a company use its mission and vision?

A: The mission and vision help employees understand the company and give them motivation. The mission shows employees who the company is

Q: Why is it important for employees to understand the vision?

A: Employees need to understand the vision because if they don’t

Q: What are company values?

A: Values are the beliefs and standards of behavior that guide how a company works towards its mission and vision. Examples include fair treatment

Q: What role do values play in a company?

A: Values guide a company towards its mission and vision

Q: What are objectives in the context of strategy?

A: Objectives are specific

Q: What does SMART stand for in objectives?

A: SMART stands for: Specific

Q: What are lagging objectives?

A: Lagging objectives look back at actions already completed

Q: What are leading objectives?

A: Leading objectives focus on the future and impact future outcomes

Q: What are the two types of objectives?

A: The two types of objectives are: financial objectives and strategic objectives

Q: What is the balanced scorecard?

A: The balanced scorecard is a tool that links financial goals to specific strategic objectives. It includes four categories: financials

Q: What is the relationship between financials and strategic objectives?

A: The financials category of the balanced scorecard tracks the company’s monetary goals

Q: What is a competitive advantage?

A: A competitive advantage is when a company earns more profit than competitors in the same market.

Q: What is strategy formulation?

A: Strategy formulation involves aligning the company’s ideas

Q: What is ideation in strategy?

A: Ideation is the process of explaining and sharing the company’s identity

Q: What is the company’s identity?

A: Identity refers to the company’s character

Q: How does identity affect competition?

A: A strong identity helps a company compete by differentiating it from others.

Q: What is purpose in a company?

A: Purpose is the reason a company exists

Q: How should purpose be communicated internally?

A: Purpose should be shared through employee development programs and other internal communication methods.

Q: How should purpose be communicated externally?

A: The mission statement explains why the company exists

Q: What is long-term intention in strategy?

A: Long-term intention is what the company is dedicated to achieving in the future

Q: What is the vision domain?

A: The vision domain provides direction and a clear goal for the company

Q: What are goals in the context of strategy?

A: Goals are specific results a company wants to achieve

Q: What is strategy in the context of vision?

A: Strategy is the plan made to achieve the company’s purpose and goals.

Q: What are metrics in the context of strategy?

A: Metrics measure progress toward achieving strategic goals. They define what success means for the company and should align with the company’s goals.

Q: What is the business model?

A: A business model is a plan to ensure a strategy creates value for the company by showing how it makes money and generates value.

Q: What is customer value proposition?

A: The customer value proposition is the value delivered to customers by meeting their needs effectively

Q: What is operating model?

A: The operating model describes how value is created through a company’s cost structure and activities.

Q: What is the profit formula?

A: The profit formula consists of three elements: Value (V)

Q: How is the business model connected to competitive advantage?

A: The business model is closely linked to competitive advantage and evolves based on environmental and competitive changes.

Q: What is the relationship between strategy and business model?

A: The business model is the result of strategic choices made in the strategy

Q: What is the business model canvas?

A: The business model canvas shows how the company delivers value to customers and uses internal resources

Q: What are cost structure and revenue streams?

A: The cost structure shows where costs are and how the company earns from activities. The revenue streams identify where the profit comes from.

Q: What is the role of top managers in strategy?

A: Top managers

Q: What role do resource managers play in strategy?

A: Resource managers link top management and operations

Q: What is the role of strategy consultants?

A: Strategy consultants help companies develop and refine their strategies.

Q: What role do middle managers play in strategy?

A: Middle managers translate divergent ideas between top management and operations to ensure alignment and effective strategy execution.

Q: Why is strategy important?

A: Strategy enables an organization to achieve and maintain a unique position in the market

Q: What is the relationship between strategy formulation and execution?

A: Strategy formulation and execution are key functions for success. Effective strategy involves providing direction