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1TECEPStrategicMngmt
Introduction & Overview of Strategy
| Question | Answer |
|---|---|
| What is a company's strategy? | The gameplan management is using to stake out a market position , conduct its operations, attract and please customers, compete successfully, and achieve the desired performance targets. |
| What is the central thrust of a company's strategy? | Undertaking moves to build and strengthen the company’s long-term competitive position and financial performance by competing differently from rivals and gaining a sustainable competitive advantage over them. |
| A company's strategy typically evolves over time and emerges from a blend of what? | Proactive and deliberate actions on the part of company managers to improve the strategy and reactive as-needed adaptive responses to unanticipated developments and fresh market conditions. |
| When does a company achieve sustainable competitive advantage? | When it can meet customer needs more effectively or efficiently than rivals and when the basis for this is durable, despite the best efforts of competitors to match or surpass this advantage. |
| What is crafting strategy? | A work in progress as changing circumstances and ongoing management efforts to improve the strategy cause a company’s strategy to evolve over time. |
| What is a company's proactive strategy? | A deliberate strategy that consists of strategy elements that are both planned and realized as planned. |
| What is a company's reactive strategy? | An emergent strategy that consists of new strategy elements that emerge as changing conditions warrant. |
| What is a company's business model? | A model that sets forth the economic logic for making money in a business, given the company’s strategy. It describes two critical elements: the customer value proposition and the profit formula. |
| What is the customer value proposition? | A proposition that lays out the company’s approach to satisfying buyer wants and needs at a price customers will consider a good value. |
| What is the profit formula? | A formula that describes the company’s approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition. |
| A winning strategy must pass which three tests? | The fit test, the competitive advantage test, and the performance test |
| What is the purpose of the fit test? | It analyzes the external, internal, and dynamic fit of the strategy |
| What is the purpose of the competitive advantage test? | It analyzes the ability of the strategy to achieve sustainable competitive advantage |
| What is the purpose of the performance test? | It analyzes two performance indicators that define the caliber of a company’s strategy: profitability/financial strength, and competitive strength/market standing |
| What is a strategic vision? | A description of management’s aspirations for the future that delineates the company’s strategic course and long -term direction. |
| What is the purpose of a well-conceived mission statement? | It conveys a company’s purpose in language specific enough to give the company its own identity. |
| What are company values? | The beliefs, traits, and behavior norms that company personnel are expected to display in conducting the company’s business in pursuing its strategic vision and mission. |
| What are company objectives? | An organization’s performance targets-the specific results management wants to achieve. |
| What are financial objectives? | Objectives that relate to the financial performance targets management has established for the organization to achieve. |
| What are strategic objectives? | Objectives that relate to target outcomes that indicate a company is strengthening its market standing , competitive vitality, and future business prospects. |
| What is a balanced scorecard? | A tool that is widely used to help a company achieve its financial objectives by linking them to specific strategic objectives derived from the company’s business model. |
| What is a company's strategic plan? | A plan that lays out its future direction and business purpose, performance targets, and strategy. |
| How does a company exhibit strategic intent? | By relentlessly pursuing an exceptionally ambitions strategic objective, committing to do whatever it takes to achieve the goals. |
| What are the typical principle aspects involved with managing the strategy execution process? (aspects 1-3) | staffing the organization with the needed skills and expertise, building and strengthening strategy supporting resources and competitive capabilities, organizing the work effort along the lines of best practice, |
| What are the typical principle aspects involved with managing the strategy execution process? (aspects 4-7) | allocating ample resources to the activities critical to strategic success, ensuring that policies and procedures facilitate rather than impede effective strategy execution, installing computer systems that enable personnel to operate efficiently, |
| What are the typical principle aspects involved with managing the strategy execution process? (aspects 8-11) | motivating people with incentives directly related to the achievement of performance objectives, creating a company culture conducive to successful strategy execution, exerting the internal leadership needed to propel implementation forward. |
| What is the distinction between a company's strategic vision and its mission? | A strategic vision portrays a company’s aspirations for the future (where are we going), whereas a company’s mission describes its purpose and present business(who we are, what we do, and why we are here) |
| The five interrelated and integrated stages that make up the strategic management process: | Developing a strategic vision of the company’s future, Setting objectives to convert the vision and mission into performance targets, Crafting a strategy to achieve the objectives, Executing the chosen strategy, Monitoring and evaluating. |
| What does the sum of a company’s strategic vision and mission, objectives, and strategy equal? | A strategic plan for coping with industry conditions, outcompeting rivals, meeting objectives, and making progress toward the strategic vision. |
| How does a company exhibit strategic intent? | By developing a strategic plan based around ambitious stretch goals that require an unwavering commitment to do whatever it takes to achieve them |
| Boards of directors have a duty to shareholders to play a vigilant role in overseeing management’s handling of a company’s strategy-making , strategy executing process. What four obligations does this entail? (obligations 1-2) | 1. Critically appraise the company’s direction, strategy, and strategy execution, 2. evaluate the calibre of senior executives’ strategic leadership skills, |
| Boards of directors have a duty to shareholders to play a vigilant role in overseeing management’s handling of a company’s strategy-making , strategy executing process. What four obligations does this entail? (obligations 3-4) | 3. Institute a compensation plan for top executives that rewards them for actions and results that serve stakeholder interests and 4. Ensure that the company issues accurate financial reports and has adequate financial controls. |
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tybouff
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