exam one

Question 1

Michael Porter’s definition of strategy

Answer 1

a broad formula for how a business is going to compete, what it’s gold should be, and what policies will be needed to carry out those goals. Strategy is about the creation and capture of value.

Question 2

Alan Lafley and Roger Martin definition of strategy

Answer 2

strategy is an integrated set of choices which position a business in its industry so as to create sustainable advantage and superior returns

Question 3

Kenneth Arrowhead

Answer 3

a pattern of decisions in a company that determines and reveals its objectives

Question 4

Richard Rumelt definition of strategy

Answer 4

a diagnosis, a guiding policy, a set of coherent actions

Question 5

combined definition of strategy

Answer 5

strategy is a diagnosis that defines or explains a business challenge or opportunity, a decision or set of decisions for dealing with he challenge or opportunity, and a coherent set of actions to deliver on the decisions so as to create sustainable advantage and superior returns

Question 6

diagnose

Answer 6

identifying and describing a challenge or opportunity confronting a business

Question 7

decide

Answer 7

making a decision about what will be done to deal with and overcome the central challenge or capture the key opportunity

Question 8

deliver

Answer 8

devising and implementing a coherent set of actions to deliver on key decisions

Question 9

assessing and connecting external issues with internal issues

Answer 9

diagnose

Question 10

diagnose outcome

Answer 10

distill the core issue into a statement or question

Question 11

diagnose process

Answer 11

recognize potential challenges and opportunities, analyze the external environment, analyze internal context, identify toot causes and key insights

Question 12

decide outcome

Answer 12

clear statement of policy which a business should purse

Question 13

decide process

Answer 13

generate solution alternatives, perform an initial screen, validate your hypothesis, confirm your choice

Question 14

deliver outcome

Answer 14

implementation of a new strategic initiative within the business

Question 15

deliver process

Answer 15

design the recommended solution, gain buy in for your recommendation, plan the implementation, monitor the execution

Question 16

corporate level

Answer 16

structure of the corporation - concerned with selection of business in which the company should compete, development of coordination of that portfolio of business

Question 17

business level

Answer 17

competition in the market - developing and sustaining a competitive advantage for a business

Question 18

managerial strategy

Answer 18

functions of the organization identifying and dealing with a diverse range of strategic challenges and opportunities confronting a business

Question 19

corporate level - who, when, how, what

Answer 19

who - c level execs, when - cyclical (annual or quarterly), how - top down from mission and values, what - strategic plan

Question 20

business level - who, when, how, what

Answer 20

who - business/division presidents, when - cyclical (annual or quarterly), how - mission, objectives, strategies, tactics; what - annual operating plan

Question 21

managerial level - who, when, how, what

Answer 21

who - managers, when - continuous, how - bottom up, what - value proposition

Question 22

STEEP

Answer 22

social, technical, economic, ecological, political/legal

Question 23

what does steep do

Answer 23

capture and interpret what is happening and what likely to happen in the macroenvironment in which a business operates

Question 24

steep social examples

Answer 24

demographics, societal values, lifestyle, preferences

Question 25

steep technical examples

Answer 25

discoveries, product potential, communication tech, alternative means of providing good or service

Question 26

steep economic examples

Answer 26

interest rates, inflation, consumer confidence, growth, unemployment, seasonality

Question 27

steep ecological examples

Answer 27

sustainable preferences, regulation incentives, sustainable resources

Question 28

steep political/legal examples

Answer 28

employment law, taxation, industry/trade regulation, copyright/ip law, monopoly and antitrust law

Question 29

steep steps for each factor

Answer 29

research major trends, identify and collect data, examine and identify interconnections, forecast future directions and implications, derive implications for the strategy of the firm

Question 30

steep risks and limitations

Answer 30

highly dependent on a managers interpretations, no way to assess which issues will have most significant impact, different managers may disagree on how to interpret factors, requires a long term orientation

Question 31

purpose of competitor analysis

Answer 31

provide managers a complete picture of the competitive landscape confronting a firm

Question 32

competitor profiling can

Answer 32

reveal competitors weaknesses, reveal likely competitor responses, and anticipate competitor future moves

Question 33

five main components of competitors analysis

Answer 33

objectives, assumptions, strategy, capabilities and resources, response

Question 34

competitor analysis process

Answer 34

identify current and future competitors, gather intelligence, consolidate information, summarize insights, derive strategic implications, continue to monitor

Question 35

competitors analysis insight

Answer 35

clear picture of competitive landscape, identify under/over served areas of market, market opportunities and threats become more evident, create a competitor-conscious culture within an organization

Question 36

competitor analysis risks and limitations

Answer 36

firms may become competitors obsesses, firms may acquire a copycat approach, firms may become blind to innovations not made by the firm or its competitors

Question 37

strategy level order

Answer 37

inside - managerial (functional and operational) middle - business (competitive) outside - corporate