strategy - Answer-a set of goal directed action a firm takes to gain and sustain superior performance relative to competitors
a good strategy has three elements - Answer-1. a diagnosis of the competitive challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent ac...
WPC 470 Midterm MHE Ch 1-5 Exam
Questions with Latest Update
strategy - Answer-a set of goal directed action a firm takes to gain and sustain superior
performance relative to competitors
a good strategy has three elements - Answer-1. a diagnosis of the competitive
challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent actions to implement the firms guiding policy
competitive advantage - Answer-always judged relative to other competitors or the
industry average
obtaining competitive advantage - Answer-firm must either create more value for
customers while keeping its cost comparable to competitors, or it must provide the value
equivalent to competitors but at a lower cost
sustained competitive advantage - Answer-firm is able to outperform competitors for
prolonged periods of time
competitive disadvantage - Answer-a firm that continuously under-performs its rivals or
the industry average
competitive parity - Answer-two or more firms that perform at the same level
effective strategy - Answer-requires strategic tradeoffs be recognized and addressed
ex. between value creation and the costs to create the value
vision - Answer-captures organizations aspirations, effective vision inspires and
motivates members of the organization
mission statement - Answer-describes what an organization actually does, what its
business is, and why and how does it work
core values - Answer-define the ethical standards and norms hat should govern the
behavior of individuals within the firm
product-oriented vision statement - Answer-defines a business in terms of a good or
service provided
, customer-oriented vision statement - Answer-define business in terms of providing
solutions to customer needs, provide managers with more strategic flexibility than
product-oriented missions
visions and missions can be effective; - Answer-need to be backed up by hard-to-
reverse strategic commitments and tied to economic fundamentals
ethical core values - Answer-underlay the vision statement to ensure the stability of the
strategy and thus lay the groundwork for long-term success, the guardrails that help
keep the company on track when pursuing its mission and its quest for competitive
advantage
AFI strategy framework - Answer-1. explains and predicts differences in firm
performance
2. helps managers formulate and implement a strategy that can result in superior
performance
Effectively managing the strategy process- three tasks - Answer-Analyze (A), Formulate
(F), Implement (I)
strategic leaderhsip - Answer-executives whose vision and decisions enable their
organizations to achieve competitive advantage
power strategic leaders use - Answer-formal and informal power to influence the
behavior of other organizational members to do things, including things they would not
do otherwise
strategic leaders - Answer-can have a strong (pos or neg) performance impact on the
organizations they lead
to become an effective strategic leader - Answer-need to develop skills to move
sequentially through five different leadership levels: highly capable individual,
contributing team member, competent manager, effective leader, and executive
The Level-5 strategic leadership pyramid applies to - Answer-both distinct corporate
positions and personal growth
corporate executives - Answer-must provide answers to the question of where to
compete, whether industries, markets or geographies and how to create synergies
among different business units
general managers in strategic business units - Answer-must answer the strategic
question of how to compete in order to achieve superior performance. they must
manage and align the firms different functional areas for competitive advantage
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