Sevi Exam 1

What is Strategy?

a set of goal directed and integrated actions a firm takes to gain and sustain superior performance relative to competitors.

What is Strategic management?

The integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

What is Competitive advantage?

A firm with superior performance relative to competitors in the same industry. It is always relative, not absolute.

What is Competitive parity?

Performance of two or more firms at the same level.

What is Competitive disadvantage?

A firm underperforms against its rivals or the industry average

What is Strategic Positioning?

Achieving combinations of value as well as cost.

A ______ is an integrated and coordinated set of commitment and actions designed to exploit core competencies.

Strategy

The goal of a good strategy is focused primarily on.

Creating superior value while containing costs

Which of the following is an element of a good strategy?

A set of coherent actions to implement the firm's guiding policy

When a company has long term competitive advantage in their industry, this is known as?

Sustainable competitive advantage

(Need to perform at a high level for 8 years or longer)

The best example of a firm's external stakeholder is.

Government agency regulates pricing of products that a firm can sell

What are the 3 important stakeholder attributes used to formulate an effective stakeholder analysis?

Power, Legitimacy, and Urgency

If your company pays your employees minimum wage, you are following which component of the CSR Pyramid?

Legal Responsibility

(If NOT paying minimum wage and general public knows, then it is an ethical responsibility)

(base of pyramid is economic)

**_____________________ help individuals make choices that are ethical and effective in advancing a company.

Organizational Values

Willingness to pay increases has customers are _____ in your company

-Delighted

(Willingness to Pay (Customer Delight- Business Sustainability, Social Status, Market Influence)

(Willingness to Sale (Supplier Surplus-Employee Engagement vs Retention, Employee Benefit Packages, Creating Value for Supplies

Which of the following best describes the goal of business level strategy?

-To achieve competitive advantage in a single product or service market

All of the following are generic business level strategies except.

-Focused Marketing

As cumulative production output of a firm increases, managers learn how to optimize the process and reduce the cost through?

-Experience Curve

A firm can achieve differentiation through all of the following means except.

-Offering deep discounts to customers. (Cost leadership would offer deep discounts)

Which of the following is a potential pitfall of a broad differentiation strategy?

-The product provided is unique/different in a way that is not valued by the customer

Which of the following best illustrates a firm using economies of scale to achieve a low-cost advantage?

-A auto manufacturer spreading high fixed R&D costs over millions of vehicles

Firms pursuing a hybrid or integrated strategy that fail to attain both overall low-cost and differentiation may end up.

-Getting stuck in the middle (leads to downfall of business)

In the __________stage of the industry life cycle, the emphasis on product design is very high and competition is low.

-Introduction (During Growth, competition starts to increase, in maturity competition is at an all-time high, decline the competition eases off)

P&G announced that it would sell off or close down up to 100 of its brands. This is an example of

-Selective market and Pruning

Adding additional products and accessibility of your products for your customers allows you to ____ the ____ pool

-Expanding; Profit

All of these are external stakeholders EXCEPT

-Board of Directors

The goal of a combination strategy of low cost and differentiation is to?

-Provide unique value to customers in an efficient manner

A company changed strategies to only sell high end wire products that meet the needs of a small group. This is an?

-example of focus differentiation (small group high end)

When two companies bring in the same amount of weekly income and gain consumer insights, this is also called

-Competitive Parity

The best example of a firm's external stakeholder is.

-The media helping promote a new product

****With cost leadership, we know that with experience unit costs of production declines as _____ increases?

-Cumulative Output.

Identifying who the _____ are is the first step in the stakeholder impact analysis.

Stakeholders.

(Shareholders are one of the stakeholders, but not the only stakeholder)

The EDGE framework is beneficial because it helps companies analyze their strategy and

-Change it based off the needs of stakeholder in real time

How does EDGE enhance the traditional idea of competitive advantage?

-It recognizes that advantage is temporary, and adaptability/ innovation is key.

In the value stick framework, the difference between willingness to pay and willingness to sell represents

-The value created that can be split between firm, customer, and supplier

Harps grocery stores are a NWA competitor to Walmart. Harps pursues a differentiation strategy. What doesn't match

-Eliminating cashiers and offering only self-checkout

***A _____ can be defined as the total profit in an industry at all points of the value chain and creates a safety net.

-Profit pool

In the ____ stage of the industry life cycle, the emphasis on product design is low and competition is high

Maturity.

(introduction means competition is low, product design is high)

_____ an integrated set of actions that are taken to produce products that meet the needs of a specific customer segment

-Focus strategy (choosing a niche market)