MGMT Exam 1 Ch 1-6

____________ is the set of actions that companies take to outperform competitors and achieve superior profitability

Strategy

____________ focuses on how to position a firm in the market, attract customers, compete vs rivals, achieve performance targets, capitalize on opportunities, and responding to changing market conditions

Strategy

You can separate yourself from rivals by doing what your competitors…

Do not do, do but even better, and/or do what they cant do.

Strategy is successful by appealing to buyers in a way that ____________

Sets the company apart from its rivals and stake out a position in the market that is not crowded with strong competitors

The 3 reasons a firm needs a strategy to specify the actions to be taken in order to ____________

Improve financial performance, competitive position, and advantage over market rivals

A ____________ achieves a cost-based advantage over other rivals

Low Cost Provider

____________ seeks to differ the company’s product or service from rivals in a way that will appeal to a broad spectrum of buyers

Broad differetiation

a ____________ concentrates on narrow buyer segments (market niche) and out-competing rivals with lower costs allowing them to serve niche members at lower prices

Focused low cost provider

A ____________ concentrates on a narrow buyer niche by offering niche members customized attributes that meet their tastes and requirements better than rivals products

Focused differentiation provider

A ____________ gives customers more value for the money by satisfying buyer’s expectations on key features or attributes while beating their price expectations

Best cost provider 

A firm achieves a ____________ by providing buyers with superior value compared to rival sellers and/or same value as its rivals with a lower cost

Competitive advantage

A Firm achieves a ____________ if the basis for its avantage persists despite the best efforts of competitors to match or surpass its advantage

Sustainable competitive advantage

The best way to create a sustainable competitive advantage is developing ____________

Expertise and capabilities over the long term that rivals cannot readily copy, match, or best

Managers modify strategy in response to ____________ (6)

Changing market conditions

advancing tech

fresh moves of competitors

Shifting buyer needs

emerging market opportunities

new ideas for improving the strategy

A firms ____________consists of proactive strategy elements that are both planned and realized as planned

Deliberate strategy

A firms ____________ consists of reactive strategy elements that emerge as changing conditions warrant

Emergent strategy

A firms ____________ sets forth the logic for how its strategy will create value for customers while generating enough revenues to cover costs and realize a profit

Business model

A winning strategy passes all 3 tests, being ____________

Fit, sustainable competitive advantage, and performance

The ____________ asks if a strategy fits within the external and internal aspects of the firms dynamic situation

Fit Test

The ____________ asks if the firms strategy helps the firm achieve a sustainable competitive advantage

Sustainable competitive advantage test

The ____________ asks if a strategy will produce superior performance as indicated by the firms profit, financial and competitive strengths, and market share

Performance test

Stage ____________of strategy making is developing a strategic vision, mission, and core values

1

Stage ____________ of strategy making sets objectives for the firm

2

Stage ____________ of strategy making crafts a strat to achieve the objective and company vision

3

Stage ____________ of strategy making is executing the strategy

4S

Stage ____________ of strategy making is monitoring/evaluating performance and making corrective adjustments to a company’s strategy and prcedures

5

A ____________ should paint managemnents aspirations for the firm and stakeholders, providing direction and compelling rationale for the firms destination using specific language to set the firm apart from rivals

Strategic vision

____________ makes employees feel more committed, ensures understanding of firms vision, motivates/inspires internal/external stakeholders, and demonstrates top management support for the firms future strategic direction and competitive efforts

Communicating a firms vision

____________portrays a firms aspirations for the future and destination

Strategic visions

____________ describes the scope and purpose of the businesses present value (who we are, what were doing, why were here)

Missions

An ideal mission statement ____________ (6)

Identifys firms product/services

specifies the buyer needs the product/service

Identifies the customer group/markets to serve

Specifies the approach in pleasing said customers

Sets the firm apart from its rivals

Clarifes the firms business to stakeholders

A firms ____________ are the beliefs, traits, and behavior norms a firm is expected to have when conducting business and pursing strategic vision/mission

core values

____________ focus attention on quarter/annual performance improvements to satisfy near-term shareholder expectations

Short-term objective

____________force consideration of what to do in the present to achieve optimal long-term performance and undoes focus on short-term results

Long-term objectives

____________ relate to financial targets of the firm and focused internally on the firms operations and activities

Financial objectives

____________ are the firms goals related to marketing standing and ompetitive position, and focused externally on competition like the firms main rivals

Strategic objectives

____________involves choosing among alternatives, promotes ideas to do things differently from rivals, and are a team effort

Crafting a strategy

____________ focuses on how to gain synergies from managing a portfolio of business together rather than as separate businesses

Corporate strategy

____________ seeks to strengthen market position and gain advantage, and are usually single-business focused with emphasis on lower-level strategies

Business strategy

____________add relevant “how’s” to a business strategy and provide game plans for managing specific activities to support other business strategies

Functional area strategies

____________ Add detail and completeness to businesses and functional strategies by providing a game plan for managing specific operating activities

Operational strategies

Hiearchy of strategy making descending is ____________ (4)

Corporate → business → functional → operational

A firms strategy is at full power only when ____________

Many pieces of the strategy are united

Key aspects of executing a strategy are ____________ (5)

Staffing the firm with qualified people

Developing the strategy-supporting resources

Allocating ample resources to the activities critical to strategic success

Ensure implemented policies facilitate strategic exectution

Motivating people and tying incentives toward their achievements

____________is deciding whether a firm is passing the 3 tests of a winning strategy

Evaluating performance

____________ is deciding whether to continue or change the firms vision, mission, strategy, and or execution methods

Initiating correcting adjustment

A company’s vision, mission, objectives, strategy, and approach to strategy execution are ____________

Never final. The process is always ongoing

Obligations of the board of directors include ____________ (4)

Ensure firms accounting complies with GAAP

Critically appraise the firms direction and strategy

Evaluate the caliber of senior executives strategic leadership skills

Implement compensation for executives creating results that serve stakeholder interest