chap 4

Question 1

The _ _ process describes its method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage.

Answer 1

strategic management

Question 2

are the first steps in the strategic management process.

Answer 2

Discovering a firm’s vision and mission and defining its values

Question 3

For _, the founders usually begin with a driving vision that they must further shape into statements about what they want to accomplish and how they will do so.

Answer 3

new organizations

Question 4

For _ _ this step is about fine-turning their vision and mission as reaffirming their values.

Answer 4

existing firms,

Question 5

A is a statement about what an organization ultimately wants to accomplish. It captures the company’s aspiration.

Answer 5

vision

Question 6

It also guides actions and decisions at all levels of the organization and helps to promote consistency of purpose so that everyone works towards the same goal.

Answer 6

vision

Question 7

3 distinct types of vision

Question 8

An effective vision is _ , _ and_ enough to excite and_ .

Answer 8

convincing, realistic and powerful :;inspire

Question 9

t/f
The vision needs to be flexible and capable of coping with changing circumstances.

Answer 9

True

Question 10

Building on the vision, organizations establish a _, which describes what an organization actually does the products and services it plans to provide and the markets in which it will compete.

Answer 10

Mission

Question 11

A mission can be.

Answer 11

customer-oriented or product oriented.

Question 12

defines a business in terms of providing solutions to customer needs.

Answer 12

Customer-Oriented Mission

Question 13

t/f
Companies that have customer-oriented missions tend to be more flexible when adopting to changing environment.

Answer 13

True

Question 14

define a business in terms of a good or service provided rather than in terms of the customer needs to be met.

Answer 14

Product-Oriented Missions

Question 15

are the ethical standards and norms that govern the behaviour of individuals within a firm or organization and within society.

Answer 15

Organizational values

Question 16

In the _ _ , managers brainstorms to identify possible future scenarios.

Input from several different hierarchies within the organization and from different functional areas such as marketing, sale, manufacturing, finance and research and development is critical.

Managers should consider both pessimistic and optimistic future scenarios.
This stage will cover the following areas:

Answer 16

analysis stage

Question 17

Analysis stage coverage areas :

Answer 17

The Strategic Management Process:

Internal Analysis:

External Analysis:

Firm Performance:

Question 18

In the i_ _ , managers activate the dominant strategic plan, the option they think most closely matches reality.

If reality changes, managers can quickly retrieve and implement any of the alternate plans developed in the formulation stage.

Answer 18

implementation stage,

Question 19

The firm’s performance in the marketplace provides feedback to the managers concerning the viability of the _ _ plan.

Answer 19

dominant strategic

Question 20

When strategizing for competitive advantage, managers rely on the following approaches that can complement one another

Answer 20

1) Strategic Planning
2) Scenario Planning and
3) Strategy as Planned Emergencies

Question 21

Customer-oriented missions identify a critical need but leave open the means of how to meet this need.

It is critical not to define how a customer need will be met because the future is unknowledgeable and innovation might provide new ways to meet needs that have not been thought of today.

Even if customer needs are constant, the organizations mission should be flexible because the means of meeting those needs can change over time

Answer 21

Customer-Oriented Mission

Question 22

T/f
Mission statements and competitive advantage to mission statements help from firm gain and sustain competitive advantage.

Answer 22

True

Question 23

T/F
Researches show that sometimes mission statements and firm performance are associated with are another. What is not very clear, however, is whether these relationships are caused, that is, whether an effective mission statement leads to competitive advantage. The upshot is that an effective mission statement can lay the foundation upon which to craft a strategy that creates economic value, leading to competitive advantage.

Answer 23

True

Question 24

Strong ethical values have two important functions

Answer 24

a. They form a solid foundation on which a firm can build its mission and long-term success.

b. They serve as the guardrails put in place so the company can stay on track when pursuing its guest for competitive advantage.

Question 25

Building Strategy is the result of three broad management tasks, namely:"

Answer 25

I. Analysis and Identification II. Formulation III. Implementation and Evaluation

Question 26

is a model that links interdependent strategic management tasks-analyze, formulate, and implement-that, together, help firms conceive of and implement a strategy that can improve performance and result in competitive advantage.

Answer 26

ANALYSIS, FORMULATION AND IMPLEMENTATION (AFI) STRATEGY FRAMEWORK

Question 27

In the _ _ , management teams develop different strategic plans to address possible future scenarios. This kind of what-if exercise forces managers to consider contingency plans in the formulation stage before events occur.

Answer 27

formulation stage

Question 28

t/F If the performance feedback is positive, managers continue to pursue the dominant strategic plan, while fine-tuning it in the process. If the performance feedback is negative, managers consider whether modifying the dominant strategic option will enhance firm performance or whether they are better off activating one of the alternative strategic plans.

Answer 28

TRue

Question 29

BASIC STRATEGIC MANAGEMENT PROCESS ILLUSTRATED

Answer 29

1. Identification and Analysis 2. Strategy Formulation 3. Strategy implementation and Evaluation

Question 30

_ strategic (long-range) planning works reasonably well when the environment does not change much.

Answer 30

Top-down

Question 31

In scenario _, managers envision different what-if scenarios and prepare _ plans that can be called upon when necessary.

Answer 31

planning; contingency ;

Question 32

Strategic initiatives can be the result of_ planning by executions and can emerge through a _ process from deep within the organization.

Answer 32

top-down ; bottom-up

Question 33

A firm's realized strategy is generally a combination of its _ intended strategy and _ emergent strategy resulting in planned emergency.

Answer 33

top-down; bottom-up

Question 34

HOW TO PUT STRATEGY INTO ACTION To put a firm's strategy into action a business model must

Answer 34

a) Translate the firm's strategy into competitive tactics and initiates and b) Implement the strategy through effective structures, processes, culture and procedures.