Chapter 1 - what is strategy?

Question 1

Management

Answer 1

planning, organizing, leading and controlling of human/ other resources to achieve an organizational goal

Question 2

planning

Answer 2

course of action to achieve appropriate goals

Question 3

organizing

Answer 3

task + authority realtion

Question 4

leading

Answer 4

motivate, coordinate, energize individuals + groups

Question 5

controlling

Answer 5

measuring + monitoring systems => how well achieved

Question 6

strategic management

Answer 6

• improvement financial performance
• strengthening long-term competitive position
• achievement of competitive edge over rivals

Question 7

strategic management goal

Answer 7

sustainable competitive advantage

=> attractive number of buyers prefer the product + durable basis

Question 8

the pattern of actions that define a company’s strategy

Answer 8

• actions to diversify (earnings/ Revenues) by new markets
• actions to enter new geographic/ product markets
• actions to capture emerging market opportunities + defend against external threats
• mergers + acquisitions => strengthen market standing
• strategic alliances + collaboration
• respond to changing market conditions
• key activities (production, sales, marketing etc.)
• strengthen competitive capabilities
• gain market share ( eg. lower prices, design…)

Question 9

strategy is dynamic –> types

Answer 9

proactive vs reactive elements

Question 10

proactive elements (dynamic strategy)

Answer 10

deliberate strategy => new planned + ongoing

Question 11

reactive elements (dynamic strategy)

Answer 11

emergent strategy => react to changing circumstands

Question 12

business model

Answer 12

how the strategy will be a money maker

Question 13

V-P (business model)

Answer 13

costumer value proposition

how to: satisfy costumers value with a reasonable price

Question 14

P-C (business model)

Answer 14

profit formula

how to: more revenue than costs

Question 15

strategy process

Answer 15

1. Stage of vision, mission and objective building
2. strategic analysis
3. strategy formulation
4. strategy implementation
5. evaluation

Question 16

vision

Answer 16

(stage 1)
route company intends to take + future strategic course
1. helps to make sense
2. needs to be motivating
3. guides actions + activities
=> becomes only real when imprinted in minds of organization members

Question 17

mission

Answer 17

company’s present state + purpose
> defining the business
> establishing major goals

Question 18

values

Answer 18

guiding principals, beliefs, traits and behavioral norms => guidelines
integrated part => supported by top management
motivational effect

Question 19

objectives

Answer 19

result + outcome management wants to achieve

• specific measurable + ambitious goals
• concrete steps towards vision

Question 20

stage 2

Answer 20

strategic analysis

external vs internal analysis

Question 21

external analysis (Stage 2)

Answer 21

competitive environment
market conditions
costumer demand
=> opportunities + threats

Question 22

internal analysis (Stage 2)

Answer 22

resources
competencies
internal systems and processes
=> strength and weakness

Question 23

crafting a strategy (Stage 3)

Answer 23

corporate strategy
business strategy
functional area strategy
operating strategy

Question 24

corporate strategy

Answer 24

overall companywide game plan: CEO + senior management

Question 25

business strategy

Answer 25

strengthen market position + gain competitive advantage: general manager of each unit

Question 26

functional area strategy

Answer 26

relevant details for overall business strategy | game plan for particular activities => support overall business: heads of major functional activities

Question 27

operating strategies

Answer 27

add details + completeness to overall + functional strategies managing specific operating activities: eg. brand, operating manager

Question 28

executing and implementing strategy (Stage 4)

Answer 28

What to change/improve? And how? like: - policies + procedures - adopting best practices + continues improvement - rewards + incentives for achievement of strategic/ financial achievements - instilling a corporate culture => promotion of good strategy executions - exercising strong leadership - installing information + operating systems

Question 29

evaluate performance (Stage 5)

Answer 29

evaluate performance + initiate corrective adjustments | fit test, competitive advantage test, performance test

Question 30

fit test (Stage 5)

Answer 30

strategy matches external + Internal conditions

Question 31

competitive advantage test (stage 5)

Answer 31

sustainable competitive advantage trough strategy?

Question 32

performance test (stage 5)

Answer 32

profitability + financial strength | competitive strength + market share

Question 33

balanced scorecard elements

Answer 33

- financial activities - costumer relationship - key internal process - learning and growth

Question 34

strategy

Answer 34

competitive moves and business approaches to: grow the business, attract + please costumers, compete successfully, conduct operations, achieve targeted levels of organizational performance