Chapter 5 - Organizational Strategy 67
complete solutions.
Chapter 5 - Organizational Strategy 67
complete solutions.
What 4 conditions must be met if a firm's resources are to be used to achieve a
sustainable competitive advantage? - ANSWER-Resources should be valuable, rare,
imperfectly imitable, and nonsubstitutable
What are valuable resources? - ANSWER-Allow companies to improve their efficiency
and effectiveness
What are rare resources? - ANSWER-Resources that are not controlled or possessed
by many competing firms
What are imperfectly imitable resources - ANSWER-impossible or extremely costly or
difficult to duplicate
What are nonsubstitutable resources - ANSWER-no other resources can replace them
and produce similar value or competitive advantage
What is competitive advantage - ANSWER-providing greater value for customers than
competitors can
What is sustainable competitive advantage - ANSWER-a competitive advantage that
other companies have tries unsuccessfully to duplicate and have, for the moment,
stopped trying to duplicate
What are the 2 goals of strategic management - ANSWER-achieving a competitive
advantage and making that competitive advantage sustainable
What are the 3 steps of the strategy making process? - ANSWER-Access need for
strategic change, conduct situational analysis, choose strategic alternatives
When accessing the need for strategic chance, what 2 things come into play? -
ANSWER-Competitive inertia and strategic dissonance
Define competitive inertia - ANSWER-a reluctance to change strategies or competitive
practices that have been successful in the past.
Define strategic dissonance - ANSWER-a discrepancy between upper management's
intended strategy and the strategy actually implemented by the lower levels of
management.
, Chapter 5 - Organizational Strategy 67
complete solutions.
What can also help managers determine the need for strategic change? - ANSWER-
Situational analysis and the SWOT analysis
Before we begin an assessment of a company's strengths and weaknesses, we must
first analyze what? - ANSWER-the distinctive competencies and core capabilities of the
company
Define distinctive competencies - ANSWER-something that a company can make, do,
or perform better than its competitors
Define core capabilities - ANSWER-The less visible, internal decision making routines,
problem solving processes, and organization cultures that determine how efficiently
inputs can be turned into outputs
Before we access the opportunities and threats of the company, we must first analyze
the strategic groups and shadow strategy task force - ANSWER-
Define strategic groups - ANSWER-Group of other companies within an industry that
top managers choose for comparing, evaiuating, and benchmarking their company's
strategic threats and opportunities
What is the goal of the shadow strategy task force? - ANSWER-Actively seek out its
own company's weaknesses and then, thinking like a competitor, determine how other
companies could exploit them for competitive advantage
The first kind of strategic group is a what? - ANSWER-Core firm. These are the central
companies in the strategic group
What are secondary firms - ANSWER-firms that use related but somewhat different
strategies than core firms
Define strategic reference points - ANSWER-The targets that managers use to measure
whether their firm has developed the core competencies that it needs to achieve a
sustainable competitive advantage. Not deterministic. Managers can actively change
and adjust the points they use to judge strategic performance
Describe the risk averse and risk taking in terms of strategic reference points -
ANSWER-if company is performing better than it is, will usually be risk averse. If
company is performing worst, then will take risk taking strategy
So how would you sum up the strategy making process - ANSWER-accessing need for
change (competitive inertia, strategic dissonance), situational analysis ... SWOT,
choosing strategic alternatives .. strategic reference point theory
complete solutions.
Chapter 5 - Organizational Strategy 67
complete solutions.
What 4 conditions must be met if a firm's resources are to be used to achieve a
sustainable competitive advantage? - ANSWER-Resources should be valuable, rare,
imperfectly imitable, and nonsubstitutable
What are valuable resources? - ANSWER-Allow companies to improve their efficiency
and effectiveness
What are rare resources? - ANSWER-Resources that are not controlled or possessed
by many competing firms
What are imperfectly imitable resources - ANSWER-impossible or extremely costly or
difficult to duplicate
What are nonsubstitutable resources - ANSWER-no other resources can replace them
and produce similar value or competitive advantage
What is competitive advantage - ANSWER-providing greater value for customers than
competitors can
What is sustainable competitive advantage - ANSWER-a competitive advantage that
other companies have tries unsuccessfully to duplicate and have, for the moment,
stopped trying to duplicate
What are the 2 goals of strategic management - ANSWER-achieving a competitive
advantage and making that competitive advantage sustainable
What are the 3 steps of the strategy making process? - ANSWER-Access need for
strategic change, conduct situational analysis, choose strategic alternatives
When accessing the need for strategic chance, what 2 things come into play? -
ANSWER-Competitive inertia and strategic dissonance
Define competitive inertia - ANSWER-a reluctance to change strategies or competitive
practices that have been successful in the past.
Define strategic dissonance - ANSWER-a discrepancy between upper management's
intended strategy and the strategy actually implemented by the lower levels of
management.
, Chapter 5 - Organizational Strategy 67
complete solutions.
What can also help managers determine the need for strategic change? - ANSWER-
Situational analysis and the SWOT analysis
Before we begin an assessment of a company's strengths and weaknesses, we must
first analyze what? - ANSWER-the distinctive competencies and core capabilities of the
company
Define distinctive competencies - ANSWER-something that a company can make, do,
or perform better than its competitors
Define core capabilities - ANSWER-The less visible, internal decision making routines,
problem solving processes, and organization cultures that determine how efficiently
inputs can be turned into outputs
Before we access the opportunities and threats of the company, we must first analyze
the strategic groups and shadow strategy task force - ANSWER-
Define strategic groups - ANSWER-Group of other companies within an industry that
top managers choose for comparing, evaiuating, and benchmarking their company's
strategic threats and opportunities
What is the goal of the shadow strategy task force? - ANSWER-Actively seek out its
own company's weaknesses and then, thinking like a competitor, determine how other
companies could exploit them for competitive advantage
The first kind of strategic group is a what? - ANSWER-Core firm. These are the central
companies in the strategic group
What are secondary firms - ANSWER-firms that use related but somewhat different
strategies than core firms
Define strategic reference points - ANSWER-The targets that managers use to measure
whether their firm has developed the core competencies that it needs to achieve a
sustainable competitive advantage. Not deterministic. Managers can actively change
and adjust the points they use to judge strategic performance
Describe the risk averse and risk taking in terms of strategic reference points -
ANSWER-if company is performing better than it is, will usually be risk averse. If
company is performing worst, then will take risk taking strategy
So how would you sum up the strategy making process - ANSWER-accessing need for
change (competitive inertia, strategic dissonance), situational analysis ... SWOT,
choosing strategic alternatives .. strategic reference point theory
